Quote:
Originally Posted by EddyBeers
That is ridiculous, do you even know how a tax credit works?
1) A person has 400 dollars to use
2)Person A give 400 dollars to the Conservative Party
3) Person A gets a subsidy from the government for 300 dollars in the form of a tax credit.
4) The person pays 300 dollars less in tax to the government.
5) The Conservative Party effectively takes 300 dollars from the tax revenue of the government and puts it in their pocket.
When it should be
1) Person has 400 dollars to give
2) They pay 300 dollars they are suppose to pay in taxes
3) They give the Conservative Party 100 bucks.
Why should a political party need government funds to encourage donating. If an individual wants to donate 400 dollars, fine, I could careless. But that person should still have to pay 300 dollars after that in taxes. If they only have 400 dollars, then the political party only gets 100 bucks. But I am unsure why I have to pay more taxes so that a political party can get more donations?
100,000 people give 400 dollars to various political parties, and that is a 30 million dollar loss of revenue for the government. It basically means that I have to pay 2 dollars more a year in tax for these tax credit subsidies. In these tight economic times, we all need to tighten our belts, Flaherty should have got rid of the tax credit subsidy for political parties.
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I guess we disagree on the nature of taxation. You assume that it is government's right to tax and thus, that government has a right to all property. I don't. I see a tax credit as merely putting money back in people's pocket.