I agree, it won't happen although I believe that it should be examined - a different thing than actually happening. Why should it be examined? Simply because if one thoroughly and honestly approached the subject that might / should / possibly would cause one to look at the expenditure side of the budget.
You identify some savings; I actually expect that there are more savings than you identify but, as always, someone's ox would be gored [an ever useful metaphor] so there is always great pushback. In order to make such changes that we would acknowledge (if we are being truthful) are terrifically disruptive one would have to be thoughtful and deliberate. On the other hand, thoughtful and deliberate are, in our country, a recipe for no action at all and allowing the naysayers an opportunity to oppose / stop / create roadblocks and otherwise stall / obfuscate / blah, blah, blah.
That would seem to leave dramatic DOGE-like actions. On the other hand, on the other hand .... We have seen and are seeing the chaos and lack of consideration of the law of unintended consequences that are a result of DOGE actions in the US.
So, deliberate and thoughtful and impossible to occur or chaos and non-consideration of unintended consequences and potentially dangerous if they do occur? No real choice provided there is it? Both choices are not simply undesirable but are also impossible to envision in a Canadian context.
Great exercise David. In the deranged dominion, capital flight is taking us down the road to serfdom at an incredible rate. These tables, particularly the second one demonstrate the issue: https://threadreaderapp.com/thread/1897281584761594268.html
I would therefore prefer ideally no taxes, but, with the understanding that the state needs to be drastically reduced in scope and reach and therefore it is more capitalism that is required not more government revenue. I would eliminate all corporate income taxes and capital gains. The government can be funded through its shrinking by a 20,000 dollar exemption threshold and then a 20% flat income tax as well as sales taxes. Income taxes exert pain on voters as a reminder of their skin in the game while overly progressive tax rates exempt the voting poor, increasing demand for more government. Corporate income taxes are paid by employees, shareholders and customers and their elimination also significantly eliminates accounting, legal and capital distortion costs as well as enticing capital to return to the deranged dominion. Eliminating capital gains eliminates double taxation and incentivizes capital formation (See Hernando DeSoto).
Fifty years ago I lived in Bermuda which, at the time, had no income tax although a 1% Hospital Levy was introduced to fund health care. Government revenues came from hefty import duties on pretty much everything and taxes on the tourism and hospitality sector. Of course many corporate headquarters (even if only a PO Box) were situated there as refuge from corporate taxes in their own countries; Bermuda nonetheless made money off them, too.
A population of (then) fifty thousand with a small economy but a strategic location was, and is, able to utilize its strengths to survive. A country as vast and as diverse, in so many ways, as Canada is a different kettle of fish but the elimination of personal income taxes is not beyond the pale. However, a flat tax rate with no provision for exemptions might be more palatable and more feasible to adopt.
Thank you for an interesting topic and sensible consideration. A few comments:
* defence spending needs to go up, likely by $100bn or more, and quickly, a poor match for austerity, as is our new go-it-alone moment.
* we might consider joining a new economic union - should our currency change and does our exposure there matter to austerity?
* do income levels jumping because of tax elimination suddenly trigger inflation or worse?
* could income be given back to citizens as staggered ten or twenty year Canada bonds?
* would it be more or less sensible to eliminate income tax for income below say $200,000 annually?
* would it be more sensible from a productivity POV to have all levels of government prepare tax returns for us for sign off annually, and eliminate many people's personal agony? I have always loved this idea, so, disclosure.
Excellent questions. Regarding tax cuts causing inflation: there probably would be inflationary pressures, but it's likely that the parallel growth in GDP would keep those pressures under control.
But any significant disruption to the system could trigger unintended consequences. That's why modelling good scenarios in advance could be helpful.
Okay. This is the real world. Free speech in Canadian citizens, the SAME INSTRUCTIONS FOR CANADA NOT GET IT HOME AND CLAIM YOUR COUNTRY CITIZENS. Part 1. Income taxes and it's attachments are illegal to the same conclusion that all taxes, payroll tax, business taxes, I'm not sure what you are interested in Canada. Income taxes, to steal by fiat, the people's lives that want to provide, subsidiary companies in Canada, all services don't know what else, 6854 bureaucratic line REGULATORY REQUIREMENTS BEGIN AND TO KNOW THAT, incentives for no reason unique. It's not the leadership team it's you. Explain the income taxes in Canada? Economic? Finance? The Canadian Patriots are all out of town for most effective experts stopped when we were almost all forgotten about. So, your of wisdom, are all too well as possible denied by action based . Intellectual capital, take this opportunity to know what knowledge of specific issues is the only thing I will be upgraded to unclassified caveats? ECHELON, 1. Knowledge is power if you all need new ones they are all too smart..
A wonderful thought experiment, Sir.
I agree, it won't happen although I believe that it should be examined - a different thing than actually happening. Why should it be examined? Simply because if one thoroughly and honestly approached the subject that might / should / possibly would cause one to look at the expenditure side of the budget.
You identify some savings; I actually expect that there are more savings than you identify but, as always, someone's ox would be gored [an ever useful metaphor] so there is always great pushback. In order to make such changes that we would acknowledge (if we are being truthful) are terrifically disruptive one would have to be thoughtful and deliberate. On the other hand, thoughtful and deliberate are, in our country, a recipe for no action at all and allowing the naysayers an opportunity to oppose / stop / create roadblocks and otherwise stall / obfuscate / blah, blah, blah.
That would seem to leave dramatic DOGE-like actions. On the other hand, on the other hand .... We have seen and are seeing the chaos and lack of consideration of the law of unintended consequences that are a result of DOGE actions in the US.
So, deliberate and thoughtful and impossible to occur or chaos and non-consideration of unintended consequences and potentially dangerous if they do occur? No real choice provided there is it? Both choices are not simply undesirable but are also impossible to envision in a Canadian context.
Great exercise David. In the deranged dominion, capital flight is taking us down the road to serfdom at an incredible rate. These tables, particularly the second one demonstrate the issue: https://threadreaderapp.com/thread/1897281584761594268.html
I would therefore prefer ideally no taxes, but, with the understanding that the state needs to be drastically reduced in scope and reach and therefore it is more capitalism that is required not more government revenue. I would eliminate all corporate income taxes and capital gains. The government can be funded through its shrinking by a 20,000 dollar exemption threshold and then a 20% flat income tax as well as sales taxes. Income taxes exert pain on voters as a reminder of their skin in the game while overly progressive tax rates exempt the voting poor, increasing demand for more government. Corporate income taxes are paid by employees, shareholders and customers and their elimination also significantly eliminates accounting, legal and capital distortion costs as well as enticing capital to return to the deranged dominion. Eliminating capital gains eliminates double taxation and incentivizes capital formation (See Hernando DeSoto).
Fifty years ago I lived in Bermuda which, at the time, had no income tax although a 1% Hospital Levy was introduced to fund health care. Government revenues came from hefty import duties on pretty much everything and taxes on the tourism and hospitality sector. Of course many corporate headquarters (even if only a PO Box) were situated there as refuge from corporate taxes in their own countries; Bermuda nonetheless made money off them, too.
A population of (then) fifty thousand with a small economy but a strategic location was, and is, able to utilize its strengths to survive. A country as vast and as diverse, in so many ways, as Canada is a different kettle of fish but the elimination of personal income taxes is not beyond the pale. However, a flat tax rate with no provision for exemptions might be more palatable and more feasible to adopt.
Thank you for an interesting topic and sensible consideration. A few comments:
* defence spending needs to go up, likely by $100bn or more, and quickly, a poor match for austerity, as is our new go-it-alone moment.
* we might consider joining a new economic union - should our currency change and does our exposure there matter to austerity?
* do income levels jumping because of tax elimination suddenly trigger inflation or worse?
* could income be given back to citizens as staggered ten or twenty year Canada bonds?
* would it be more or less sensible to eliminate income tax for income below say $200,000 annually?
* would it be more sensible from a productivity POV to have all levels of government prepare tax returns for us for sign off annually, and eliminate many people's personal agony? I have always loved this idea, so, disclosure.
Excellent questions. Regarding tax cuts causing inflation: there probably would be inflationary pressures, but it's likely that the parallel growth in GDP would keep those pressures under control.
But any significant disruption to the system could trigger unintended consequences. That's why modelling good scenarios in advance could be helpful.
Okay. This is the real world. Free speech in Canadian citizens, the SAME INSTRUCTIONS FOR CANADA NOT GET IT HOME AND CLAIM YOUR COUNTRY CITIZENS. Part 1. Income taxes and it's attachments are illegal to the same conclusion that all taxes, payroll tax, business taxes, I'm not sure what you are interested in Canada. Income taxes, to steal by fiat, the people's lives that want to provide, subsidiary companies in Canada, all services don't know what else, 6854 bureaucratic line REGULATORY REQUIREMENTS BEGIN AND TO KNOW THAT, incentives for no reason unique. It's not the leadership team it's you. Explain the income taxes in Canada? Economic? Finance? The Canadian Patriots are all out of town for most effective experts stopped when we were almost all forgotten about. So, your of wisdom, are all too well as possible denied by action based . Intellectual capital, take this opportunity to know what knowledge of specific issues is the only thing I will be upgraded to unclassified caveats? ECHELON, 1. Knowledge is power if you all need new ones they are all too smart..