1. Taxes in Canada

2. Where does our tax money go?

3. ie. Goods and Services Tax (GST)
Tax Systems 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
"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. Goods and Services Tax (GST)
GST is 5% on purchases, goes to the federal government.
In BC, they also have a 7% Provincial Sales Tax (PST)
Alberta, Northwest Territories, Yukon and Nunavut are the only provinces/territories that do not have a PST or a combined sales tax (HST)

4. 15% on the first $38,832 of taxable income, +
Tax Systems in Canada
In Canada we have a progressive tax system. In simple terms this means the more income you make the high percentage of 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.
The opposite of a progressive tax system is a flat tax system. In simple terms this means that all taxpayers pay the same percentage of their income, no matter what their income is.
As a province, Alberta used to have a flat tax rate; but this was changed by the Alberta government in 2015 to a progressive tax system
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!

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

6. Terms to know:
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Tax Base – Taxation Model – Tax Evasion – Underground Economy –
All the economic activity in a society, taxed by government to pay for services
A policy of a political party or government about what to tax, how much to tax and how to spend the taxes
Misrepresenting what you earn to avoid taxes
Economic activity based on buying and selling products and services illegally, also known as the black market

8. What do taxes pay for in Canada?

10. How Should Government Spend Your Money?
What areas do you believe our federal government is spending too much money on? Justify your answer.
What area do you believe our government should direct MORE of our tax money towards? Justify your answer.
Move slide?

11. Remind me:
What are examples of Social Programs?
Another Social Program in Canada is Employment Insurance

12. Should Canadians be given the choice to pay into social programs like healthcare and employment insurance?