OTTAWA, Feb. 13, 2013 /CNW/ - Canada's tax system is in dire need of
reform, says a new study by the Canadian Centre for Policy Alternatives
According to the study, by CCPA economists Marc Lee and Iglika Ivanova,
ad-hoc tax changes over the last two decades have seriously weakened
the redistributive role of Canada's tax system at a time when market
inequalities call for more, not less, redistribution.
"At a time of rising income inequality and unprecedented concentration
of wealth in the hands of a few, restoring fairness should be the
primary objective of the Canadian tax system," says Ivanova. "Instead,
the past twenty years of tax cuts have disproportionately lined the
pockets of Canada's wealthy."
The study presents a framework for a progressive tax reform strategy
broadening the income tax base to ensure that all forms of income are
subject to the same progressive tax rates,
raising marginal income tax rates on top incomes,
eliminating tax credits and deductions that disproportionately benefit
the richest Canadians,
introducing a single, streamlined, income-tested transfer for low- and
modest-income families, and
implementing inheritance and/or wealth taxes to prevent the
concentration of wealth across generations and to improve social
The study recommends the establishment of a Fair Tax Commission to
examine how federal taxes and transfers work together as a system and
make recommendations for changes.
"The last comprehensive tax policy review, the Carter Commission, was
convened more than half a century ago, in 1962," says Lee. "It's time
for a meaningful and broad-based public dialogue on how to make our tax
system fair for all Canadians."
SOURCE: Canadian Centre for Policy Alternatives
For further information:
Fairness By Design: A Framework for Tax Reform in Canada is available on the CCPA website: http://policyalternatives.ca
For more information contact Kerri-Anne Finn, CCPA Senior Communications Officer, at 613-563-1341 x306.