Higher Taxes on Rich Canadians, Will It Generate Better Revenue?
Online, June 11, 2013 (Newswire.com) - The Wall Street study of taxation is more of US taxpayer theory than any other country and hold very less importance to the Canadian economy. The very premise of top earners should pay more tax does not fit into the Canadian taxation system and is a debatable topic since many years. The Wall Street projection of 1% in US that is the top end income earner is almost half of what a Canadian at that band would earn. The US incomes are more concentrated at the high end than their Canadian counter parts.
Soak the Super Rich with Taxes
The debate over inequality in taxation will feature four well know speakers a Greek scholar and three Americans. One of the speakers is Paul Krugman the Nobel Prize winner economist. The very formula of higher the tax higher will be revenue is not suitable for the Canadian economy.
The Paul Krugman theory of taxing the rich is not going to be accepted in the Canadian scenario, as there is stark difference in the income patterns of both the countries. The inequality in taxes is definitely a topic of discussion in any country, as every income band feels cheated by the taxation system imposed by their respective countries.
Canadian Super Rich Sees No Comparison with Americans
When the comparative study is done between both the countries US and Canada three points come out for discussion, first top earning bands of both the countries are incomparable as average income of 1% income band of Canadian is $366,600 that is just 11.7% of total income share. On the other hand and American 1% income band earner brings home $1,048,000 19.8% of total income share. The result of this study is that on an average the Canadian citizens bring home approximately half of what an American does.
Second point of discussion is that Income in US is concentrates high end than in Canada and third point being how the change in tax affects the taxable income rates to which Canadian economy is sensitive.
The debate about taxing the rich should be an interesting discussion as Paul Krug supports the idea of soaking the rich in tax where as other speakers say that taxing rich is not the ultimate solution to reduce income inequalities in developed nations.
What should be a perfect taxation system that would lead to societal good? The debate would definitely be from American perspective but definitely through an insight on comparative taxation systems in developed nations.
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