[GGG]

Originally Posted by Poster

So a 25% increase in taxes, can be a mix of corporate, income or POS?

Also what happens to EI deductions? Just convert to income tax?


Any idea what that math looks like?


What impact does imposing a 25% global tax increase have on our society? Surely it’s not just a matter of “nothing will change”.

I copy and pasted some numbers from my previous some of which I stole from Mathgod and Bizaro.

OAS/GIS 50 billion
CPP- 50 billion
EI - 20 billion
RRSP tax deductions 23 billion
Child benefits 23 billion
CPP current fund of 355 billion at 3% per year 10 billion

So you have access to about 180 billion so need 220-300 billion more.

Our GDP is about 2.1 Trillion Canadian so 1% increase in public spending as a % of GDP is 20 billion. So if the Canada chose to become among the most socialist large nations (And assuming no impacts on GDP for now as a result of this grand exeperiment) you have the ability to raise about 320 billion if we move to 56% of GDP spent (really more redistributed) by the government.

Which does get us to the threshold to offer every adult a UBI.

To hit your 20k figure and 400 billion we just need to collect about 50% Of GDP in terms of taxation which in Europe is still high but certainly not an outlier.

Given that you are just rebating the money in cash for people to spend and if this tax was implemented on a progressive scale it might actually be stimulus.

In general giving money to people to buy necessities is really good stimulus. I’m not sure about the consequences relative to increasing business taxation or personal income tax. I think on the personal income tax each dollar of redistribution is stimulating becuase it’s more likely to be spent locally. If you could convince the US to do it with Canada then the business affects might be mitigated.

Unlike most tax increases which cause drag because the government spends less efficiently then people In this case you are giving the money to people so the only drag is the cost of redistribution. That’s the theory behind Carbon taxes any ways.