A recent lead editorial in one of the world’s most prominent newspapers, the Wall Street Journal, pointed out the risks associated with the United States adopting a national sales tax, or value-added tax (VAT).
With tumbling oil prices and resource revenues, Premier Jim Prentice had a choice when he delivered Alberta’s 2015 budget. He could emulate former premier Don Getty and raise taxes or follow the Ralph Klein playbook and reduce spending.
Premier Jim Prentice dropped hints for months that the 2015 provincial budget was a once-in-a-generation chance to “fix” Alberta’s finances.
With oil prices plunging and provincial resource revenues expected to drop, Alberta’s red ink will rise. In response, Premier Jim Prentice has floated the notion of a provincial sales tax and/or hikes in other taxes.
If you asked average Canadian families what their largest expense is, many would probably say housing. And you can’t blame them. Mortgage and rental payments are a painful monthly reminder of how much we pay for this basic necessity.
Like other Canadians, you work hard for your money.
Faced with essential expenses such as food, clothing, and shelter, your household budget may feel squeezed. But what if we told you, your family's biggest expense is taxes?
Sure, you know how much you pay in income tax. After all, it's right there on your income tax return. In fact, income tax is the largest and most visible tax, taking $14 out of every $100 your family earns.
But that's just scratching the surface.
One item sorely missing from Finance Minister Mike de Jongs recent provincial budget was a plan to make BCs business taxes more competitive and attractive for investment.
A new year can bring new possibilities. Its a chance to take stock of what weve accomplished in the past year and to set new goals for the future. Its also, however, when Canadian governments typically enact new taxes. Unfortunately, governments across the country in recent years have been all too keen to bring in new taxes or increase existing ones, resulting in squeezed household budgets. The question for 2014 then, is will this trend continue or will governments recognize its time to give taxpayers a break?