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Ulir'tg such a "high-tax" nation to being an average taxing nation would be a
tax-saving bonanza.
The tix_complainer may be surprised to know that, in 2010, Canada
had a total tax revenue to gross domestic product (GDP) ratio of 3"/,. of
the 30 countries for which tie organization for Economic Cooperation and
Development (OECD) has avai1ab1J010 dutu, the unweighted average is 34'3oo-
This mlans that, if Canada had been an aaeragetaxing country, there lt'ould
have been an additional $43 billion for public spending'
That,sbecauseCanada's total tax revenue to GDP ratio is smaller than thai
of 20 of those 30 countries. Canadais in fact a low-tax iurisdiction.
Imagine an additional $43 billion. It would take only 23% of the nervly
found iurr".r.r" finally to reach former Prime Minister Lester Pearson's
international commitment for international aid. It would take less than 5%
for a fully-funded national affordable housing strategy. we could do both of
those things, eliminate the deficit, and do much more' if we were an aaerage
taxing nation.
Tirose claiming Canada,shigh-tax status might argue that, because of the
progressive tax sy-tem in this country, high-incom" C."119h1s still have to
iuy"-or" than is fair. But it's worth utti.tg if they would like Canada's high-
income earners to take on only an average proportion of what Canadians
p"y i" taxes. surely, the change from such "high" tax rates to an average rate
woula be a tax-saving windfall for Canada's top earners?
The tax complairiers may be surprised to learn that taxpayers in the 5th
income decile (moderate-irio*" Canadians) paid 35.4%of their income on
income, paytoll,consumption, property, capital gains' and-corporate taxes in
2005.Those in the top 17"of incom" euttt"tt paid less -
90:?'/:
of their income'
The top I'/"had, ur,
^urr"tugu
income of $405,000 in2007. If these top earners
had pald the same propoiion of their income in taxes as did people earning
ggs,6oab$45,528,they would have paid on average an additionalfi19,845, or
a combined additional $4.9billion'
And what if we combine these two concepts - Canada being an average
.orrrr,ry and its highest income earners paying an average amount? The top
ly" would also pay ta.8% of the additional g+gUittlott - proportional to their
share of income - for a combined contribution of $10.8billion.
IfCanadaweleanaveragetaxingnation,theadditionalcontributions
of the top I"/"alone could booit us beyond Pearson'sinternational aid goal'
This is an important discussion to have with
,,high-tax,, complainers'
Thereclearlyisapointatwhichhightaxescandoagreatdisservicetoa
country. Canada's iax rates are not near that poin!, especially for very high-
ir.Icomeearners, but misinformation about allegedly high tax rates can have
CUESTEDITORIAL:
Our low-tax country
ow often have you heard that Canada is a high-tax nation?.The next
,irn" yon are toid this, consider asking the speaker if he or she would
rather that Canada's tax rates just be average' Surely, the change{rom
a similarly damaging effect.
Stephen Uurp".,it an informed tax complainer' would not take on this
u.r"*gi taxation challenge. He never agreed that average taxation would
be suificient for CanadafDuring the 2O0aConservative Party leadership
convention, he said he would sirive to make Canada "the lowest taxing
[corrrttry]." It's hard to know what countries he had in mind as a comparator
for Canada. Kuwait? Equatorial Guinea? Based on the United Arab Emirates, if
*" ur" supposed to take Harper's vision for Canada seriously' Canada would
have a tax revenue to GDP iatio of less than 7.4%.This would mean having
an annual tax revenue of less than $20billion, across all levels of government'
Then again, it's hard to take Stephen Harper - or anyone else who says
that Canadi has high taxes - all that seriously-,
-T homasAp pliy ard, lJnioersity of Toronto' t$l
CCPAMonitor 2
Internet=freeilom
"ChairmanMaousedto say,'Ascommu-
nistsu-egaincontrolwiththepowerofthe
grn andmaintaincontrolwiththepower
ofthepen.'Youcanseepropagandaand
thecontrolofideolograsanauthoritarian
society'smostimportanttask.Beforethe
lnternet.all peoplecoulddowaswatch
T- or readthe People'sDai.ly.Nowit
isren different.Thepaperstry to talk
aboutthings.but evenbe{orethey ap-
peareveryonehastalkedaboutthem on
theInternet.
"l still think Gorbachev'srevoluti.onin
Russia- glasnost-was moreimportant
0pennessandtransparencyaretheon'
wayto curbthesedarkpowers.Chines
citizenshaveneverhadthe right to re'
a erpresstheir opinions.In the'Wes
peoplethinkit's arightthey'rebornwith
but in Chinait's a 'right' givenby tht
government,andonethat until recentl
wasrarelypractised.
"Butsincetheygotthenetandcouldwrit
blogs,the Chj.nesehavestartedto shar
ideas,anda newsenseof freedomha
arisen.Still, the governmentrefusest
grveup controi.It blocksmajorInterne
platformsbecauseit is afraidoffreedis
cussion.But censorshipbyitselfdoesn
rtork.Thelnternelkeepsgrowing.an
peoplewill nowhaveavolce.It doesn
havetobeastrongvoice,becauselonth
Internet]powercanbecausedtocollap
byawhisper
"It still hasn'tcometo the momentr
collapse.China'stechnolograndma
productionareadmiredby othercou
tries.Butin thelongrun itsleadersmu
understandit's not possiblefor them
controlthe Internetunlesstheyshut
off completely- andtheycan'tlivewi
theconsequencesofdoingthat.
"TheInternet is uncontroliable.Ald
the Internetis uncontrollable,freedo
will prevail.It's assimpleasthat."
-Ai Wei,weiin The[UK] Guardian'
Jun

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Canada's tax rates are lower than average and could generate billions more

  • 1. Ulir'tg such a "high-tax" nation to being an average taxing nation would be a tax-saving bonanza. The tix_complainer may be surprised to know that, in 2010, Canada had a total tax revenue to gross domestic product (GDP) ratio of 3"/,. of the 30 countries for which tie organization for Economic Cooperation and Development (OECD) has avai1ab1J010 dutu, the unweighted average is 34'3oo- This mlans that, if Canada had been an aaeragetaxing country, there lt'ould have been an additional $43 billion for public spending' That,sbecauseCanada's total tax revenue to GDP ratio is smaller than thai of 20 of those 30 countries. Canadais in fact a low-tax iurisdiction. Imagine an additional $43 billion. It would take only 23% of the nervly found iurr".r.r" finally to reach former Prime Minister Lester Pearson's international commitment for international aid. It would take less than 5% for a fully-funded national affordable housing strategy. we could do both of those things, eliminate the deficit, and do much more' if we were an aaerage taxing nation. Tirose claiming Canada,shigh-tax status might argue that, because of the progressive tax sy-tem in this country, high-incom" C."119h1s still have to iuy"-or" than is fair. But it's worth utti.tg if they would like Canada's high- income earners to take on only an average proportion of what Canadians p"y i" taxes. surely, the change from such "high" tax rates to an average rate woula be a tax-saving windfall for Canada's top earners? The tax complairiers may be surprised to learn that taxpayers in the 5th income decile (moderate-irio*" Canadians) paid 35.4%of their income on income, paytoll,consumption, property, capital gains' and-corporate taxes in 2005.Those in the top 17"of incom" euttt"tt paid less - 90:?'/: of their income' The top I'/"had, ur, ^urr"tugu income of $405,000 in2007. If these top earners had pald the same propoiion of their income in taxes as did people earning ggs,6oab$45,528,they would have paid on average an additionalfi19,845, or a combined additional $4.9billion' And what if we combine these two concepts - Canada being an average .orrrr,ry and its highest income earners paying an average amount? The top ly" would also pay ta.8% of the additional g+gUittlott - proportional to their share of income - for a combined contribution of $10.8billion. IfCanadaweleanaveragetaxingnation,theadditionalcontributions of the top I"/"alone could booit us beyond Pearson'sinternational aid goal' This is an important discussion to have with ,,high-tax,, complainers' Thereclearlyisapointatwhichhightaxescandoagreatdisservicetoa country. Canada's iax rates are not near that poin!, especially for very high- ir.Icomeearners, but misinformation about allegedly high tax rates can have CUESTEDITORIAL: Our low-tax country ow often have you heard that Canada is a high-tax nation?.The next ,irn" yon are toid this, consider asking the speaker if he or she would rather that Canada's tax rates just be average' Surely, the change{rom a similarly damaging effect. Stephen Uurp".,it an informed tax complainer' would not take on this u.r"*gi taxation challenge. He never agreed that average taxation would be suificient for CanadafDuring the 2O0aConservative Party leadership convention, he said he would sirive to make Canada "the lowest taxing [corrrttry]." It's hard to know what countries he had in mind as a comparator for Canada. Kuwait? Equatorial Guinea? Based on the United Arab Emirates, if *" ur" supposed to take Harper's vision for Canada seriously' Canada would have a tax revenue to GDP iatio of less than 7.4%.This would mean having an annual tax revenue of less than $20billion, across all levels of government' Then again, it's hard to take Stephen Harper - or anyone else who says that Canadi has high taxes - all that seriously-, -T homasAp pliy ard, lJnioersity of Toronto' t$l CCPAMonitor 2 Internet=freeilom "ChairmanMaousedto say,'Ascommu- nistsu-egaincontrolwiththepowerofthe grn andmaintaincontrolwiththepower ofthepen.'Youcanseepropagandaand thecontrolofideolograsanauthoritarian society'smostimportanttask.Beforethe lnternet.all peoplecoulddowaswatch T- or readthe People'sDai.ly.Nowit isren different.Thepaperstry to talk aboutthings.but evenbe{orethey ap- peareveryonehastalkedaboutthem on theInternet. "l still think Gorbachev'srevoluti.onin Russia- glasnost-was moreimportant 0pennessandtransparencyaretheon' wayto curbthesedarkpowers.Chines citizenshaveneverhadthe right to re' a erpresstheir opinions.In the'Wes peoplethinkit's arightthey'rebornwith but in Chinait's a 'right' givenby tht government,andonethat until recentl wasrarelypractised. "Butsincetheygotthenetandcouldwrit blogs,the Chj.nesehavestartedto shar ideas,anda newsenseof freedomha arisen.Still, the governmentrefusest grveup controi.It blocksmajorInterne platformsbecauseit is afraidoffreedis cussion.But censorshipbyitselfdoesn rtork.Thelnternelkeepsgrowing.an peoplewill nowhaveavolce.It doesn havetobeastrongvoice,becauselonth Internet]powercanbecausedtocollap byawhisper "It still hasn'tcometo the momentr collapse.China'stechnolograndma productionareadmiredby othercou tries.Butin thelongrun itsleadersmu understandit's not possiblefor them controlthe Internetunlesstheyshut off completely- andtheycan'tlivewi theconsequencesofdoingthat. "TheInternet is uncontroliable.Ald the Internetis uncontrollable,freedo will prevail.It's assimpleasthat." -Ai Wei,weiin The[UK] Guardian' Jun