The Connection Between Taxation and Social Programs

"Direct taxes" are taxes are imposed on the income of Canadian resident individuals, Canadian corporations and various other entities that either reside or carry on business in Canada. "Direct taxes" are taxes are imposed on the income of Canadian resident individuals, Canadian corporations and various other entities that either reside or carry on business in Canada. ie. Income Tax ie. Income Tax "Indirect taxes" are generally consumption taxes levied on property and services. In Canada, the term "commodity taxes" is often used in place of indirect taxes. "Indirect taxes" are generally consumption taxes levied on property and services. In Canada, the term "commodity taxes" is often used in place of indirect taxes. ie. GSTie. GST

 To pay for the government!  To help the government pay for the services it provides to its’ citizens, such as: health care roads & highways Employment Insurance Environmental Controls Canada Pension Plan Old Age Security Education (universities, colleges, K-12 education) Crown Corporations (Canada Post, National Film Board, etc) Universal Child Care Benefit Immigration Services Military RCMP National Security (border patrols, passport offices, etc) Resource Conservation Social Services (child protection, affordable housing)

In Canada we have a progressive tax system. In simple terms this means the more income you make the more tax you pay. In Canada we have a progressive tax system. In simple terms this means the more income you make the more tax you pay. 15% on the first $38,832 of taxable income, + 22% on the next $38,832 of taxable income (on the portion of taxable income between $38,832 and $77,664), + 26% on the next $48,600 of taxable income (on the portion of taxable income between $77,664 and $126,264), + 29% of taxable income over $126,264. In Alberta our provincial government has gone to a flat tax. In simple terms this means that all taxpayers pay the same percentage of their income. In Alberta our provincial government has gone to a flat tax. In simple terms this means that all taxpayers pay the same percentage of their income. 10% of taxable income in 2009 When you combine all of the various direct and indirect taxes, from all three levels of government, Canadians pay some of the highest rates of tax in the world!

Use this fictitious chart to assess which system you think is the fairest:

 Flat TaxProgressive Tax

 The Canada Health Act is federal legislation that puts in place conditions by which individual provinces and territories in Canada may receive funding for health care services.

 In Canada, the federal, provincial, and local government levels ALL collect taxes from citizens in a variety of different forms.  Federal Taxes: GST, income tax  Provincial Taxes: Alberta tax  Local Taxes: property tax

 In Canada, the federal government transfer some of the taxes it receives from Canadians to the provinces of Canada, based on their level of need.  In Canada, these transfers include the Canada Health Transfer and the Canada Social Transfer. These funds go towards social programs.

 Every country and political party has different ideas on what types of taxes to collect, as well as how to spend those tax dollars within their country.  The money a country has to spend from taxes is called a tax base.  In all countries, it’s against the law to NOT pay taxes. If you don’t, you can go to jail for tax evasion.

 People who do not pay the taxes required by law are considered to be part of the ‘underground’ economy.  Why is it called ‘underground’?  Another term for the underground economy is the black market.

 How does tax evasion affect law-abiding Canadians?  If Canadians fail to pay taxes as required, less money is available to governments to support social programs as well as to assist other programs.  How is the quality of life of Canadians affected?

 Tax Evasion in a nut shell  TWZ8&nohtml5=False

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 1 Paragraph explaining what the Panama Papers are  1 Paragraph explaining the significance of the Panama Papers  (ie. What effect does it have on the economies of the world)