Quote:
Originally Posted by bizaro86
Disagree. At low income levels the total amount of GST paid is ~0 on a net basis.
Someone making $20k gets 2.5% of their gross income as GST rebate, so even if we assume they pay no other taxes the maximum GST they're paying is 2.5%.
And at that income level I have to think 50% of income gets spent on things without GST. For example rent and groceries, making effective GST rate 0.
While it's true that those with high income don't pay GST on money they save, high income earners have a lot more tax planning opportunities to reduce income taxes. Capital gains inclusion, dividend tax credit, RRSP deductions, donations, business expenses, etc. GST is very difficult to avoid.
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Fair enough, I just generally feel that time is an object that has been repeatedly weaponized against the working poor in favour of the investment class, any opportunity they have to differ spending including taxes is the greatest source of inequality we have, moreso than income disparity.
Actual percentages and quantities aside, the poor experience taxation within 0 to 14 days of receiving income, and the wealthy often experience taxation years after earning money through a variety of mechanism. I think anything to equalize that will be a meaningful change