Romeo Saganash proposes tax code reform.
About $152 billion gets redistributed currently. Much of that goes to incentives for corporations, deductions for the privileged, boutique credits for market segments, and loopholes for those with the best accountants. These expenditures skew the system away from progressive taxation – meant to help redistribute wealth to the less advantaged – toward regressive taxation that only increases the growing gap between the rich and poor …
But most importantly, we can reduce inequality by raising the minimum standard deduction for everyone to the level of a living wage. That minimum deduction – called the “basic personal amount” on the form – is $10,527 this year. No one can live on that … Under my approach, the minimum threshold before any individual pays taxes could be raised well above $20,000. Each Canadian could earn a moderate living before paying any tax. The system would never again drive a hard-working person into poverty.