Taxes and fairness, Part 2: Anti-social transfers
Tax cuts are not the primary means chosen by governments in Canada to ensure that our tax regimes systemically favour the wealthy. A myriad of methods undermine tax fairness. The combined effect in 2015 of these anti-social transfers reduced by at least $633 million the taxes paid by those earning more than $100,000 a year in Newfoundland and Labrador (NL). Social transfers are government programmes designed to reduce inequality by helping the vulnerable in society. They can be funded directly out of general revenues, or by contributions from the people and firms who are likely to benefit from the programme. Our income tax system itself can also be thought of as a form of social transfer, inasmuch as it taxes wealthier people at higher rates. A progressive income-tax system is fundamental to reducing inequality in Canada. By contrast, anti-social transfers are government actions that increase inequality. These can take many…
