Quote:
Originally Posted by Azure
Obviously raising the GST now is a bad idea, but it should have been done in Trudeau's first term.
Its only political suicide if done leading up to an election.
Also, most of the taxation issues in Canada are related to who controls most of the money. The boomers. Also the same people benefiting from our housing crisis.
Fuzz just to lash out at 'those filthy conservatives' to make himself feel better.
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This is an incredibly important point.
Ask yourself a few key questions, and you'll see exactly what the problem is, and why a solution is decades away because that generation is not going to ever volunteer to raise taxes and reduce spending on areas that concern them:
1. Why are capital gains taxed so much less than dividends and ordinary income?
2. Why are principal residences completely tax sheltered and mortgages (or rent) are not deductible (in most cases)?
3. Why are capital rich seniors able to obtain OAS by sheltering income?
4. Why does the US have a full estate tax (of up to 40%) and Canada only have a deemed disposition on assets (with exclusions)?
5. Why is the entitlement age (largely) still 65 when life expectancy is roughly 83 (most financial plans put second to die at 95), and life expectancy in 1975 was nearly a decade earlier at 73.5?
and..
6. Who are the largest voter group in the country?...
Unfortunately, raising consumption tax and income tax will do nothing more than add more strain on the lower and middle classes while simultaneously driving educated professionals who are income rich and capital poor to places like the US in order to keep more of their income and build wealth at a quicker rate.
We already have an issue with attracting and keeping medical professionals... with Ontario, Quebec, and BC having their highest marginal rate of tax well over 50% (versus about 35-40% in most US states), the best tax planning opportunities for business owners and professionals that the boomers enjoyed are largely in the rear view mirror, and the US offering more money (with a more valuable currency)... hometown discounts from 25-45 year old professionals may not last much longer.