Alberta Taxes

[JobHopper]

[QUOTE=NuclearPizzaMan;4403437]Don't respond to an accusation that you are over simplifying political discourse with an idiom.

Actually no I'm not. Just open your eyes and look around you right here in the City of Calgary to find wasted tax dollars.

Driven down Memorial Drive lately? How much did that project cost? Looks like a hoarder brough a bunch of junk home, just a clutter.

[NuclearPizzaMan]

Originally Posted by JobHopper

Actually no I'm not. Just open your eyes and look around you right here in the City of Calgary to find wasted tax dollars.

Driven down Memorial Drive lately? How much did that project cost? Looks like a hoarder brough a bunch of junk home, just a clutter.

Can you point out where I said that no tax dollars are wasted?

[JobHopper]

My point is the government takes in a lot of revenue from taxes, maybe they should be more frugal, if you want to use that term. I just feel like a pay a lot personally and have had a 5% paycut this year. That's why I think people are peaked out as far as taxes are concerned.

[Flamenspiel]

Originally Posted by Tinordi

This has been so by a concerted, misleading, dishonest campaign by right wing politicians, nihilistic capitalists, and other sociopaths to build a four decade long campaign to erode the public's trust in government.

LOL, lets be honest, do you really think a campaign was required for that? What branch of government are you in?

[bizaro86]

http://metronews.ca/news/canada/8048...t-for-alberta/

I actually think something like this would be a good idea. It addresses the main objection to switching from income to sales taxes (they're considered regressive) by bottom loading the income tax refund.

Someone making 30,000 per year would save approximately $1240 per year in provincial income tax, allowing them to spend ~50% of their gross income on taxable goods and come out even. Most people at that income bracket probably spend more than that on items that don't attract HST. (shelter, food, cpp/ei, federal income taxes being the likely biggest).

Since anybody making $34k or less gets the full GST credit, its likely a sales tax credit would be added for Alberta with a similar cutoff, making the change progressive not regressive.

[HOWITZER]

Originally Posted by bizaro86

http://metronews.ca/news/canada/8048...t-for-alberta/

I actually think something like this would be a good idea. It addresses the main objection to switching from income to sales taxes (they're considered regressive) by bottom loading the income tax refund.

I personally love this proposal. Considering not being taxed on the first 57,250 of income (provincially mind you, still get taxed through the nose federally), and with I'm assuming a 10% tax on income ABOVE 57k, this would be helluva good for lots of people. It really makes it a lot easier to save money. In the current system my income is instantly shaved by x% off the top, and it makes it a lot harder to pocket extra money over the course of the year.

It seems that this new proposal would reward those who aim to spend less on consumable goods. And that seems to make sense because those who consume less are less of a burden on public infrastructure. Example: You don't spend money on gas to drive to work? You're less of a burden on the 'system' because you're not using the roadway during the busiest hours of the day. And, you're paying less in tax.

My biggest fear though is that we (Albertans) are so caught up in this "Alberta Advantage" and "we don't have PST so we are so much better" mantra that people won't read beyond the second line of the articles where it says 8% PST before they start throwing their hands up in the air crying bloody murder. I'm the last person in the world who puts faith in the government to do the right thing, but for the sake of progress, and a thicker bank account, I'd really like to see the government/people look at this proposal RATIONALLY and get an understanding for each stakeholder the pros/cons for his or herself.

The important takeaway from this proposal is that the people out there who constantly complain about taxes have the opportunity to pay very little in taxes with controlled spending/active saving.

[GGG]

Originally Posted by bizaro86

http://metronews.ca/news/canada/8048...t-for-alberta/

I actually think something like this would be a good idea. It addresses the main objection to switching from income to sales taxes (they're considered regressive) by bottom loading the income tax refund.

Someone making 30,000 per year would save approximately $1240 per year in provincial income tax, allowing them to spend ~50% of their gross income on taxable goods and come out even. Most people at that income bracket probably spend more than that on items that don't attract HST. (shelter, food, cpp/ei, federal income taxes being the likely biggest).

Since anybody making $34k or less gets the full GST credit, its likely a sales tax credit would be added for Alberta with a similar cutoff, making the change progressive not regressive.

And reading the comment section makes me lose faith that anything like this could ever be implemented. My one issue with proposals like this is they further target the single income family and lower taxes on a two income family earning the same amount. A two income family making 57k would be $5700 per year better off than a single income family making 114k.

[bizaro86]

Originally Posted by GGG

And reading the comment section makes me lose faith that anything like this could ever be implemented. My one issue with proposals like this is they further target the single income family and lower taxes on a two income family earning the same amount. A two income family making 57k would be $5700 per year better off than a single income family making 114k.

Isn't the person exemption transferable to a spouse? If a new, much higher, personal exemption was also transferable, this would also have the effect of being income splitting for most people.

[GGG]

Originally Posted by bizaro86

Isn't the person exemption transferable to a spouse? If a new, much higher, personal exemption was also transferable, this would also have the effect of being income splitting for most people.

You are right, for some reason I thought that only applied for the federal personal excemptions an not the provincial ones. I am definately in favour of a sales tax replacing income tax.

[stampsx2]

Aberta pays over 20 billion in equilaization payments with over 7 billion going to Quebec. Why do i have to get taxed to balance the budget when Quebec is getting free tuition, double the maternity leave and who knows what else.

In that case, all Albertans should be getting a vote in Quebecs next provinicial election since it's having an impact on us.

[stampsx2]

By the way i'm fine with equilization payments cause i understand it's part of being a country, but when a new tax is being discussed to support other provinces poor government decisions it rgmg.

[CaramonLS]

Originally Posted by malcolmk14

Since 2008, the number of funded students in Alberta schools has gone up about 1.8%, the number of teachers has gone up 1.4%, administrators up 17.8%, and support staff up 112.3%... something is wrong there.

There's also a much larger proportion of staff in Alberta Education that is over 55, than there was 5-10 years ago.

I've heard the CBE has some of the highest admin costs of any board in Canada. I don't doubt it either, some of their Admin salaries rival Oil companies here in Calgary.

[4X4]

What would happen if Canada survived off of sales taxes? Eliminating income taxes, say the feds took 18%, and provinces took 7%, so there was a 25% tax on sales (bonus: it's hidden; merchants are required to post the actual till price for goods)?

[Slava]

Originally Posted by 4X4

What would happen if Canada survived off of sales taxes? Eliminating income taxes, say the feds took 18%, and provinces took 7%, so there was a 25% tax on sales (bonus: it's hidden; merchants are required to post the actual till price for goods)?

I'll tell you what would happen. It would be awesome. No more saving every little receipt for the better part of a decade, no more government money spent trying to verify claims or garbage like that. People here are weird though. A lot of states have sales taxes, and we barely notice when we travel and buy things. States like Texas have made the switch you're talking about and everything is good. For some reason though, people in Alberta just won't even consider the notion.

[4X4]

Originally Posted by Slava

I'll tell you what would happen. It would be awesome. No more saving every little receipt for the better part of a decade, no more government money spent trying to verify claims or garbage like that. People here are weird though. A lot of states have sales taxes, and we barely notice when we travel and buy things. States like Texas have made the switch you're talking about and everything is good. For some reason though, people in Alberta just won't even consider the notion.

It sounds pretty logical to me. Tax what's spent, not what's earned. That way, you get a chunk of the tourism dollars, ans you also alleviate the strain on your citizens. Well, except for retirees. They payed income taxes all their lives, and now they're going to pay 25% sales tax to buy their cat food.

[Slava]

But no tax on their savings, and if its RRSP money they got a break on the way in as well.

[Makarov]

Originally Posted by stampsx2

Aberta pays over 20 billion in equilaization payments with over 7 billion going to Quebec. Why do i have to get taxed to balance the budget when Quebec is getting free tuition, double the maternity leave and who knows what else.

In that case, all Albertans should be getting a vote in Quebecs next provinicial election since it's having an impact on us.

I'm afraid that, like so many other Canadians, you have no idea how Canada's equalization regime actually works. This is a good summary: http://en.wikipedia.org/wiki/Equaliz...ents_in_Canada

[GGG]

Originally Posted by 4X4

What would happen if Canada survived off of sales taxes? Eliminating income taxes, say the feds took 18%, and provinces took 7%, so there was a 25% tax on sales (bonus: it's hidden; merchants are required to post the actual till price for goods)?

One issue would be the export business. If we manufacture something for export would it be taxed. If so our goods would be more expensive. Would companies be able to lower their prices on goods of export enough do to the coporate taxes being saved or would the cost of exported goods go up. Or would we rebate the tax on exported goods as well as rebate the tax paid on the input costs of export goods and depend on employees of these companies paying taxes as the only benefit from that company existing.

Other than that is that I perfer all taxes being paid be added on and visable. All tax increases and decreases should be visable. And the amount of tax we pay should be visable.

[MarchHare]

Originally Posted by stampsx2

Aberta pays over 20 billion in equilaization payments with over 7 billion going to Quebec. Why do i have to get taxed to balance the budget when Quebec is getting free tuition, double the maternity leave and who knows what else.

In that case, all Albertans should be getting a vote in Quebecs next provinicial election since it's having an impact on us.

By the way i'm fine with equilization payments cause i understand it's part of being a country, but when a new tax is being discussed to support other provinces poor government decisions it rgmg.

You really need to research what the equalization program is and how it actually works before posting nonsensical and erroneous rants about it.

First, Alberta does not pay "over $20 billion in equalization payments". For 2013-2014, the entire amount of equalization will be $16.1B. Source: http://www.fin.gc.ca/fedprov/eqp-eng.asp

Second, no province "pays" equalization. The Government of Alberta does not cut a cheque and send it to the Governments of PEI, New Brunswick, Quebec, etc. Equalization is a federal program that sees money sent from the Government of Canada to selected provinces that are deemed, by a complex mathematical formula, to not have the same revenue-generating power ("fiscal capacity) as other more prosperous provinces. The Equalization program is funded by the taxpayers of every province. My parents, who live in New Brunswick, see a portion of their federal tax dollars spent on equalization, just like I do in Alberta. The only difference is that their provincial government receives money back from Ottawa while mine does not.

Also, contrary to your assertion, any hypothetical new tax at the provincial level in Alberta would in no way whatsoever "support other provinces (sic) poor government decisions".

Third, how Quebec (or any other province that receives equalization, but for some reason raging Albertans only ever complain about PQ in these discussions) manages its provincial budget has no bearing whatsoever on the quantity of equalization they receive. The Government of Quebec could implement the harshest austerity measures imaginable and cut spending to a level that would give pause to even a staunch Tea Party supporter, and they would still receive exactly the same amount of equalization as they do today. Equalization is only determined by fiscal capacity, not by government spending.

Finally, if you want the same quality of government services that Quebec provides its citizens (e.g. greater tuition subsidies, more generous maternity benefits, etc.), then vote for a candidate/party in the next provincial election who will make those things a priority. Of course, funding those services would surely necessitate an increase in your provincial taxes to a similar level that the citizens of Quebec pay, which is substantially higher than what we currently pay in Alberta.

[bizaro86]

Originally Posted by GGG

One issue would be the export business. If we manufacture something for export would it be taxed. If so our goods would be more expensive. Would companies be able to lower their prices on goods of export enough do to the coporate taxes being saved or would the cost of exported goods go up. Or would we rebate the tax on exported goods as well as rebate the tax paid on the input costs of export goods and depend on employees of these companies paying taxes as the only benefit from that company existing.

Other than that is that I perfer all taxes being paid be added on and visable. All tax increases and decreases should be visable. And the amount of tax we pay should be visable.

Nope. Exports are GST exempt. An Alberta sales tax would almost certainly be an HST, so exports would remain exempt. Inputs to exporting firms would remain taxable at source, but the exporting firm claims that tax on their GST/HST tax return, so they get it refunded.

Basically, switching from production (income) taxes to consumption taxes is a huge boost to exporters.