Greater equality through taxes

by Aaron Wherry

Kevin Milligan and friends consider how to deal with inequality.

Brian Topp assumes his proposed 35-per-cent federal rate would yield $3 billion in new revenues. Economists have fairly good estimates of how much revenue “slippage” we might expect for top earners, and these estimates suggest the additional revenue might slip down closer to $1.5 billion … How could this new money be used to help those who are struggling at the bottom? Cutting income tax rates in the bottom bracket doesn’t do much, since the basic exemption and other tax preferences mean that few low-income earners actually pay income tax. Instead, the right target is to enhance our system of refundable tax credits. As examples, think of the HST/GST credit, the Canada Child Tax Benefit, or the B.C. Family Bonus. These payments can be targeted by family income and delivered efficiently through direct deposits into recipients’ bank accounts.

More from Kevin and the gang here, here and here.




Browse

Greater equality through taxes

  1. Inequalities get worse the more we spend on bureaucracy to fix inequalities – Gary Becker pointed out that discrimination is worse in heavily regulated societies like Canada. It is nonsensical to have poor people pay taxes to pay bureaucrats’ salaries to transfer some money back to poor people. 

    Canada should introduce guaranteed minimum income for underclasses, working poor and mothers of children under age 6 and eliminate most of bureaucracy and their crazy programs that don’t work. Social scientists and their beloved programs to fix poor people and other troublesome groups are not effective and complete waste of money. Give downtrodden basic income, let them pursue their happiness and leave them alone from bureaucratic meddling.

    • Gary Becker.. isn’t he one of those social scientists you like to disdain so much?

      Ever gonna make up your mind on that?

  2. Wherry, now that you’re in love with equality, why don’t you propose that government confiscate all earnings to be handed out equally to everyone?  That way, you and I will be equal.

Your email address will not be published. Required fields are marked *