Taxation in Canada

What is the connection between taxation and social programs? Government collect taxes to pay for social programs. Both Federal and Provincial governments collect taxes. Canadians pay 2 kinds of taxes to the government: Income tax and sales tax. Glossary Add the following terms to your glossary sheets 1. Goods and Services Tax (GST) 2. Income Tax 3. Median 4. Sales tax 5. Service tax

Taxation Model Individuals have jobs and make $ Individuals pay taxes Income tax goes to the Federal government Federal government uses or distributes the money to the provinces to provide services that benefit Canadians Education Income Assistance Social Programs

How does paying or not paying taxes affect social programs and quality of life? In all countries it is against the law to avoid paying taxes. The economic activity that governments tax is called the Tax Base. Tax Evasion involves not reporting your economic activity. This is part of the underground economy which is also called the “Black Market”. This is illegal and takes away from the governments tax base and therefore its ability to provide social programs for Canadians Glossary Add the following terms to your glossary sheets Black Market Tax Base Tax evasion Taxation model Underground economy

The Underground Economy Simply put the underground economy or black market is a market where all commerce is conducted without regard to taxation, law or regulations of trade. It is illegal!

Viewing Watch the following public service announcement and contest that Revenue Canada created to bring awareness to why Canadians should pay taxes and not buy into the “underground economy” FACT: The government of Ontario estimates it losses 2 billion dollars a year to the underground economy in the construction industry alone

What are some ways in which the underground economy is used?

How does the underground economy negatively affect Canadian’s quality of life?

What values shape the economic policies of political parties on social programs and taxation? Stephen Harper Michael Ignatieff Gilles Duceppe Jack Layton Elizabeth May Conservative Liberal Bloc Quebecois NDP Green The above are the leaders of the 5 main political parties in Canada’s Federal Government… What are the political platforms of each party? What are their views on social programs and taxation? LETS FIND OUT…