Tax Avoidance Affects Each of Us
It comes down to being about money, who gets it, and who doesn’t. Our current tax regulations, favor affluent Canadians s in a big way. They get outrageous tax breaks. ‘Average’ Canadians pay the bill. Some have referred to tax avoidance as ‘Wealthfare’.
We are at the beginning of the post-Covid 19 economic recovery, and we have incurred massive debt as a result of the pandemic. We need all to pay their fair share in this rebuilding. This includes affluent Canadians
People don’t have a context for 5-to-8 billion dollars annually, or 25-to-40 billion dollars over five years. Following are a few examples of the impact of government legislation that would prohibit the use of offshore tax havens by affluent Canadians to avoid paying taxes. .
Impact of Tax Reforms on Jobs:
- At the low end, five billion dollars could fund 100,000 jobs, each job paying $50,000. At the high end, eight billion dollars could fund 160,000 jobs, each job paying $50,000 annually. Over five years, this equates to between 500,000 and 800,000 new jobs.
- Each of those 300,000 people would pay income tax, potentially amounting to 2 billion dollars.
- These 300,000 people would spend money in their community, growing the economy.
- As the economy grows, additional well-paying employment opportunities would be created.
- Unemployed, underemployed and graduates from colleges and universities would directly benefit from this tax reform.
Impact of Tax Reform on Canada’s Economic Health:
- Because of existing tax laws that legalize personal tax avoidance, billions of dollars in Canadian currency are moved to offshore tax havens. Prohibiting affluent Canadians from using offshore tax havens to avoid tax payment would create an environment for businesses allowing them to flourish, enhancing Canada’s economic health.
- Partnerships with businesses will make them more competitive domestically and in global markets.
- Investments in research and development will allow businesses to take leadership roles through the launches of new products and services.
- Seed money will be available for entrepreneurs to develop new products and services.
Impact of Tax Reform on Health, Education and Canada’s Social Programs:
- Pharmacare with dental plans for everyone would be afforded.
- A universal child care program could be implemented.
- There would be additional funding for hospitals dramatically improving services.
- Investments by individuals in their education would pay dividends to graduates.
Impact on Middle Class
Personal tax avoidance is a major reason why Canada’s middle class is diminishing. It is a reason why many Canadians feel financially insecure, why family debt increases and the gap between the rich and poor is increasing.
Impact on Credibility of Canada’s Political System
No one, and no politician has anything good to say about personal tax avoidance. Yet, it exists in our tax regulations. Federal politicians strongly resist even talking about personal tax avoidance. It negatively reflects on the credibility of our political system.