Citizens are taxed because they make use of the services provided by the three levels of government.<br />
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Citizens make use of public schools and hospitals, roads and highways, water and sewer services, power and communications access, and demand police and fire protection, not to mention a military force strong enough to protect the nation's sovereignty and help in times of emergency and disaster. Citizens also need regulated standards for food, clean water, and a myriad of other products and services that work well and safely because of government imposed standards. These are just a few of the needs of Citizens. All of these things cost dollars and are paid for by taxing the Citizen. A flat tax rate of say between 10-35% (based on total income of course) would seem fair for all these services and protections!<br />
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Corporations are taxed because they make use of the services provided by the three levels of government.<br />
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Corporations make use of people educated in public schools whose health is maintained by public hospitals. They ship their products on public roads and highways, consume water and sewer services, require power and communications access, demand police and fire protection, and demand a nation strong enough to enforce international trade laws. These are just a few of the needs of Corporations. All of these things cost dollars and are paid for by taxing the Corporation. A flat tax rate of say 15-40% would seem fair (based on total revenues of course) considering that many of these services are used to a much larger degree by Corporations than by Citizens.<br />
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However grudgingly, both Citizens and Corporations pay taxes, and both receive benefits in the form of the services and protections they enjoy. The problems start however when those that consume the larger share of the provided services are paying the smaller share of the tax burden, and problems also arise when those that have the most disposable dollars pay the lowest percentages of tax.<br />
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Corporation or Citizen, both are treated equally as legal entities and have protections, as well as responsibilities, under the law. <br />
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If we are both so equal, why do Corporations on average pay about 30 cents tax on every dollar, while Citizens pay about 60 cents tax on every dollar?<br />
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Wait a minute says Citizen Joe/Jane, I only have about 30% deducted in taxes from my pay! Where is this 60% coming from? Think about it for a minute, income tax represents less than half of a Citizen's total tax bill. <br />
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Other taxes such as; Canada Pension Plan, Employment Insurance premiums, property taxes, HST and GST on purchases, capital gains taxes, non-refundable bottle deposits, vehicle registrations and licenses, road-tolls, the miscellaneous user-fees charged for various government services, and heavier taxes and fees on other items deemed for one reason or another to warrant these heavier taxes, items such as tobacco, liquor and gas. There are other not so obvious taxes based on usage, such as water bills and airport-user fees, dog licenses, etc. All of these taxes and fees take a big bite out of a Citizens income, as high as 2/3 or the total Citizens tax burden according a 2003 report from that venerable Canadian Institution, the Fraser Institute.<br />
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"Income taxes accounted for only 32 percent of the taxes the average Canadian family paid in 2003. All those other, not so obvious, taxes accounted for the other two-thirds of the tax bill."<br />
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In addition, because these user fees and taxes are so varied and unevenly applied across the country, it is impossible to come up with an accurate figure, however the figure of 60 cents of every Citizens dollar going to the tax man would indeed be a conservative national estimate.<br />
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Which leads us to the Corporate Citizen. As earlier discussed the Corporation is a much heavier user of many of the services provided or subsidised by tax payer dollars. Notice the proportion of commercial freight to passenger vehicles on our roads and rails, it seems Corporations make very good use of our infra-structure. Think your power bill of $100-$150 a month is high, imagine a power bill of say $10,000 a month! Yes, Corporations are immense consumers of the services and infra-structure either provided by, maintained, or in some way supported though tax dollars, however, Corporations have been contributing less and less of these tax dollars to the pool year after year. <br />
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In 2000 the general Federal Corporate tax rate was 28%. In 2004 it was 21%. <br />
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But wait, says ACME Corporation, we also pay Canada Pension Plan, Employment Insurance premiums, property taxes, HST and GST on purchases, capital gains taxes, non-refundable bottle deposits, vehicle registrations and licenses, road-tolls, the miscellaneous user-fees charged for various government services and so on and so on.<br />
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Indeed they do, but they also get those dollars back big time. Would the government refund to you every dollar of HST/GST you pay? No, only Corporations have that right. Would the government guarantee your loan, or subsidize the rate you pay your gardener or home worker? Doubtful. Yes indeed Corporations pay big tax bills... but they also reap many more benefits than the Citizen.<br />
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So I put this to every Canadian Citizen, if you are content with 60 cents of every dollar you earn, while only 30 cents of every Corporate dollar earned, landing in the tax man's pocket, you need do nothing. If however, this outrages you as much as it does me, here is the link to find your local Member of Parliament. Tell him or her that you disapprove of the Corporate tax cuts will that will be put before the House of Commons this fall.<br />
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-Nobles need not pay taxes!?<br />
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<a href="http://www.parl.gc.ca/common/senmemb/house/members/CurrentMemberList.asp?Language=E&Parl=38&Ses=1&Sect=hoccur&Order=PersonOfficialLastName">http://www.parl.gc.ca/common/senmemb/house/members/CurrentMemberList.asp?Language=E&Parl=38&Ses=1&Sect=hoccur&Order=PersonOfficialLastName</a><p>---<br>--Snowdog<br />
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Canadians First!
Posted: Sat Sep 10, 2005 8:42 am 
