http://timestranscript.canadaeast.com/news/article/529923
Summery
The article discusses a survey discussing whether New Brunswick should switch to a flat tax rate system instead of the progressive system it has now. It would attract new workers, as they would have to pay less tax and take home more money. But many are rejecting the idea because they believe those that earn more should pay more. Many that agree with the flat tax plan say that worker with a higher income still pay more tax even on the flat tax plan since 10% of $100,000 is more than 10% of $10,000. Not surprising that most people like the idea of paying less tax and having more money in their pocket to spend whatever way they like.
Connection
Chapter 4 talks about the tax brackets in Canada and the different taxing ways there are. Canada currently uses Progressive taxation. So the percentage of taxes paid is different among different incomes. The higher the income is, the higher the percent of tax one would have to pay. A lot of people do not think that’s fair due to the tax bracket and the marginal tax. One that makes more money doesn’t necessary get to take home more money, as most of the money would be paid off in taxes. A lot of people in New Brunswick are debating the idea of a Flat tax, which means there is a fixed percentage of tax one would have to pay. It challenges the current progressive taxation ways and makes people think about future taxation plans.
Reflection
This is a bit of a debate for myself. On one hand, I don’t like the current progressive taxation in Canada. I think it discourages people to take better positions and higher income because in the end, the raise isn’t all that much. If we were to have a flat taxation plan, the rich would still pay more than the poor. It would encourage people to take higher incomes and not worry about the money going to tax. It also avoids the tax bracket, which is a problem with the progressive taxation plan due to the fact that some people are just on the boarder and paying more but not earning quiet as much. The problem with the flat taxation is that there would be less tax going to the government and many benefits that we have now would be lost. This is especially troubling for the poor as they are the ones that are benefiting the most from all the public services. It is defiantly not an easy debate.
2 comments:
I think the implementations of a flat tax system would benefit people to lower income families in comparison to people who have a higher income.Although having to lower taxes can be unbeneficial to the government itself.Since the government is responsible in services such as transportation, building development.. etc. This tax can take effects in provincial decisions as well, which is responsible for people well beings, such as providing a good educational system. I think implementing a proportional tax system would be better, since it's considered to impose an equal burden (relative to resources) on the rich and poor also the economy itself.
Although I also believe this new taxation will help New Brunswick for the moment, it will not be beneficial to the province in the long run. The taxes that are taken from salaries help to fund less fortunate families, fix roads, social services,etc; a government would have insufficient funds to help the citizens in Canada. Although this flat tax has worked in Alberta, they have certain resources, such as oil to bring funds in, which is not the case for Nwe Brunswick. Will this plan work for the next 2 years? Yes. Will it work after 5? Most likely not.
Raymond Chen
Block E
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