what are the arguments of high income, middle income, low income and corporate tax payers who are critical o the Canadian government's income tax policy.
To understand the arguments of high income, middle income, low income, and corporate taxpayers who are critical of the Canadian government's income tax policy, it is important to consider the varying perspectives of each group. Here are some common arguments put forth by each category of taxpayer:
1. High-income taxpayers:
a. Argument for lower tax rates: High-income taxpayers often argue that they bear a disproportionately higher burden of taxes due to the progressive nature of income tax policies. They may contend that lower tax rates would incentivize investment, job creation, and economic growth.
b. Tax avoidance concerns: Some high-income taxpayers criticize the effectiveness of Canadian tax laws and enforcement, arguing that loopholes and tax planning strategies allow the wealthy to reduce their tax liability significantly.
2. Middle-income taxpayers:
a. Strained finances: Middle-income taxpayers often express concerns about the financial strain caused by the progressive tax structure. They argue that high tax rates reduce their disposable income and limit their ability to save, invest, or meet their financial goals.
b. Lack of benefits: Middle-income taxpayers may believe that they do not receive sufficient benefits or services in proportion to the taxes they pay, leading to frustration and dissatisfaction.
3. Low-income taxpayers:
a. Financial hardships: Low-income taxpayers highlight the challenges of meeting basic needs due to the tax burden. They argue that high taxes prevent them from rising above the poverty line and hinder social mobility.
b. Inequality: Some low-income taxpayers feel that the income tax policy perpetuates income inequality. They argue for a more progressive system that requires higher-income earners to shoulder a larger portion of the tax burden.
4. Corporate taxpayers:
a. International competitiveness: Corporate taxpayers may criticize the income tax policy's impact on the competitiveness of Canadian businesses, citing high corporate tax rates that are perceived to discourage investment and job creation.
b. Tax complexity and compliance costs: Companies may express frustration with the complexity of tax regulations, arguing they result in high compliance costs and divert resources that could be used for business expansion or innovation.
It is important to note that these arguments do not represent the views of all individuals within each category of taxpayers. The opinions and perspectives on this matter can vary widely among individuals within each group.