Quote:
Originally Posted by flamesfan6
both of these are bad for canada as they are decreasing tax revenue while increasing spending.... They have removed a source of income - which means they just have to cut other programs or increase debt.
Don't get me wrong - I like TFSA's and I think the 5k/5.5K limit per year was well enough. Increasing it to 10k like they have done does NOT help anyone who actually needs the help. We will be paying for this down the road, and really not a lot of people can afford to max out the TFSA to the max.
The corporate tax rate is already the lowest of the G7 countries - and could be still increased by a few percents and probably really not cause a lot of changes. Was there really a need to lower it?
|
There's like a million variables here, but the fact is that the corporate tax rate today is half of what it was 40 years ago, and our corporate tax revenue is almost the same percentage of our gdp as it was in 1967. And the numbers do not vary much year to year. Interestingly the Americans haven't lowered their corporate rate since the 1980's and they have not seen the same increase. So maybe there is a reason. But again, millions of variables.
http://taxfoundation.org/blog/canada...re-tax-revenue
And as for TFSA's I think the smartest thing we could do with our Americanized population is encourage some saving. It's a seriously good move, way more important than slightly more tax at some point in the future. I think it should be limited though.