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Originally Posted by MarchHare
Before Alberta abolished health care premiums, low-income individuals and families were exempt. Also, I assume any hypothetical PST would not apply to the necessities of life like groceries and such.
Sales taxes are generally viewed to be a regressive form of taxation, though (that is, they create a greater burden on those with lower incomes than they do on the wealthy).
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Add to this that the suggestions yesterday included a rebate just like lower income families receive from the GST.
Quote:
Originally Posted by opendoor
Why the reticence to having a normal progressive income tax? I never understood the flat tax's upside. I know why high wage earners would like it, but what does it do for the majority of the population?
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In talking in passing with Gosbee yesterday he noted that this will deter high income earners from elsewhere from settling here, and obviously we do want attract those people. I've heard this argument before, perhaps most notably at an event where Steve Forbes was speaking. I'm kind of on the fence to be quite honest; I don't want to pay higher taxes!
I also love the efficacy of a consumption tax, and frankly it just makes so much more sense than income tax. People would actually take home more of their pay cheque, and that is definitely a good thing.