Quote:
Originally Posted by freeweed
Personally I'd be in favour of a progressive flat tax. Use similar brackets as we have today (first $x,000 is untaxed, next $y,000 is 17%, next is 24% etc) and NO deductions. Simple, neat, fair. But parents, seniors, farmers, northern workers, disabled people - basically every group you can think of will scream.
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Most deductions (though not the farming-, senior-, disability-related ones you speak of) are meant to provide incentives for people to MOVE their money, risk their money, etc. When money is active, it contributes more greatly to the country's economic pulse.
If you made a million bucks tomorrow and kept it under a pillow, it would generate far less wealth for you and your country. So some policies seek to encourage the re-investment of that money.
As for parents, seniors, farmers, northern workers and disabled people, well tax benefits being accorded to these groups reflect the common values we share. ''Canadian values'' as it were.
We consider parents, parenting and the family unit to be an essential part of our success. So we add give incentives to those who 'make families'
Farmers grow food. This is an important function in society, particularly if something were to f*ck up on a global scale. It keeps us autonomous. And unfortunately it pays really poorly on average. So government watches out for farmers.
Northern workers contribute economic development of our resources in unexploited areas. Nobody wants to do this kind of work. Government creates added incentive.
Seniors and disabled people are extra-vulnerable. Government provides them with additional protection through tax policies.
I think if folks looked at our system very carefully, they would understand that behind 95% of measures there exists a well-thought out, well-meaning and commonly supported purpose. Now, the effectiveness of tax collection is a different story.