In: Economics
You are attending a conference of business leaders in Vancouver and you have been asked to defend the high tax regime in Canada. In the form of a speech, beginning with “Dear Ladies and Gentlemen,...” defend the high taxation of 31% national average in the country.
Use the cost/benefit analysis discussed in class as part of your defense. In the course of your defense, be sure to discuss at least two tax categories in support. You can also use the impressive economy/financial response of the Canadian government in the ongoing COVID-19 health crisis as part of your support. (Please note that one, two or three lines responses would not have enough details to give you good marks on this question. The more details the more chances of good marks.) .
Dear Ladies and Gentlemen, I would like to defend the high taxation rate of 31% national average in the country as it increases the likelihood of the government earning good revenues and getting the chance to spend in case of national emergency. Yes, there are costs such as higher supervision and burden on the people, but it eventually leads to government spending more for the people in the country. The funds are deployed for social and environmental contributions, which ultimately helps to serve the people. Canada's tax categories are framed in such a way that the rich have to pay a higher tax (20.5% of over $48,534 income) while those who earn less than that have to pay 15%. With such measures the Canadian government is able to undertake such a large scale expenditure of CAD 193bn (8.4% of GDP) on such emergency measures. Without the high taxation rate, the government would have been unable to save for such extraneous circumstances