Reshaping the Debate on Raising Taxes: A Refute

Reshaping the Debate on Raising Taxes: A RefuteIn the obligate authorize Reshaping the Debate on Raising Taxes, Robert H. rude (2007) demonstrates his copious birth that politicians should be able to increase r raseue enhancementes without the fear of civic retaliation. He emphasizes the great need to speak virtually taxes, and is confident that, ein truthplace the years, voters would be to a greater extent open to ?fresh school principals of view?. He thereby concludes that they would understand the needs for raising taxes.

It would be a common consensus that voters are not as objective as Frank renders them to be, and not much has changed over the years in terms of how constituents react to even the slightest possibility of raising taxes. or so voters, no matter how effective the means of communication, entrust of all(prenominal) time respond resentfully in opposition to raising taxes. Additionally, Canada is taxed mettlesome enough and the money is existence distri merelyed unduly in the defile countrys, thus explaining the constant need for politicians to increase taxes.

Even when tax hikers are announced and explanations are provided of its agenting as Frank would promote, state continue to respond unfavourably. For instance, tobacco prices had increased by an additional $1.25 per carton of cigarettes from $24.70 to $25.95 in February 2006 (Kelly, 2006). The political sympathies inaugurated this particularly to admonish teens from smoke using the analogy that ?young people are especially sensitive to price increases? (Kelly). Since then, this has probably caused underground smoking to escalate where it would not be really difficult for people to find cheaper cigarettes illegally, thus endorsing further criminal activity.

Such was the instance when Ontario and Quebec endured an influx of robberies and hijackings during the 1990s all in the quest for cigarettes (Luik, 2004) as if it were gold. Further evidence demonstrates that New York is the highschoolest taxed city in the coupled States for cigarettes and, as a result, also has one of the largest black markets in tobacco products (Luik). One can see the adverse reaction of the public when it comes to raising taxes. Constituents instigate their own way of dealing with the frame of politics if taxes are raised(a).

The Conference Board of Canada primed(p) in Ottawa had released a report early in the year calling for carbon taxes in order to strike down emissions of greenhouse gases (Jackson, 2008). Here is an other consequence in point where many stakeholders would not be very impressed with the perfect introduction of carbon taxes. The Board is taking a rash stance by opting for the tax to be tax neutral. fit in to the Board, any level of high carbon taxes can soft discourage and drive business out of Canadian markets (Jackson). umpteen of Canada?s manu pointuring industries vie with virile foreign players in the market, and a carbon tax would make an onerous task for them to besides stay in the competition. This could possibly crumple-up the ghost to many transmission line losses within the domestic manu facturing industries. Any level of high carbon taxes can be detrimental to Canadian businesses and lead to further forbid consequences such as a come near in gas prices. Constituents would definitely be quite aggravated if such had to happen, thus, once again emphasizing that the anti-tax rhetoric, as powerful as it is, would continue to prevail.

Canada is taxed high enough, and it is absolutely unnecessary for the political relation activity to draw out additional proceeds from the pockets of hard functional citizens. In September 2007, the CRA had won the eBay Canada tax information case where ?high volume online Canadian sellers? would have to ?turnover all names, addresses, phone numbers and gross annual sales? (Gnaedinger, 2007). From this, it is homely that the government will have bonus revenue drift in. All sizeable amounts of underground money made by powerful sellers before would now turn up in tax remittances to the government, hence the additional revenue. This gives a greater reason for politicians to avoid raising taxes or even addressing the issue.

There is a great imbalance in the Canadian system in terms of the way tax revenue is distributed among the three levels of government. The fact that roads are not fixed properly, public shipping is not organized well and like issues are in general due to municipal governments not having many sources of receiving revenue (Anonymous, 2004). Cities are not allowed to tax personal income, retail sales or profits (Anonymous). Most of municipal revenue comes from property taxes where the leverage to raise it is quite limited, and the cities are ultimately prohibited to slant deficits by law (Anonymous). Toronto ?receives only eight cents of every clean tax dollar that residents pay on their rising incomes; the other 92 cents goes to the federal and provincial governments? (Anonymous). This is strong evidence of the fact that the nation does not need to be taxed any more than it already is because huge amounts of taxpayers? money are distributed disproportionately. The cities that need the most money to maintain its upkeep and where businesses thrive receive a simple fraction of the tax revenue whilst the federal and provincial levels guide unnecessary chunks. Thus, there is absolutely no need to even speak of raising taxes only the necessitation to redistribute tax dollars on the federal, provincial and municipal levels proportionately.

Keeping taxes low encourages additional consumer disbursal and might even push for higher standards of financial support. It is apparent that constituents will have more income to spend if taxes are low, and this would be passing advantageous for the economy particularly the gross domestic product. Many voters responded favourably to the government commenceing the GST from 7% to 5% over the span of two years. As of the beginning of 2008, consumer spending rose exceedingly assist in part by the one percent data track back in GST. ?Januarys sales jumped 1.5% to a seasonally modify C$35.75 billion (US$35.12 billion) from the previous months 0.8% gain?? (Menon, 2008)Economists were surprised at how Canada?s per capita GDP has grown 26% over the recent ten years surpassing even the US, whose growth was about 20%. An even welcoming fact was that the standard of living last year had gone up 84.4% of the average American (Geddes, 2008). One might agree that these consequential benefits can, in part, if not all, be owed to the lowering of taxes. Constituents are able to spend more because of lower taxes, and having extra disposable income increases the standard of living. These certainly cannot be achieved at high tax levels where consumers cannot even afford the radical necessities, and this consequently causes GDP to fall.

As connoted earlier, there is an unfair diffusion of taxes, and politicians need to agree on balancing the tax system better before contemplating the need for tax hikes. Frank (2007) did not make a reasonable assign that constituents are more perceptive to fresh ideas, and politicians should raise taxes without fear.



In fact, as seen in prior evidence, they respond with great hostility to the mere hike of taxes, and even more pleasantly when the opposite occurs.

Word reckon: 1125BibliographyAnonymous (2004, May). Overtaxed and Underfunded. Canada and the WorldBackgrounder, 69(6), 4-8. Retrieved establish 22, 2008, from [Research Library] database. (Document ID: 653843991).

This was a strong article used to give evidence and support of the fact that Canadians are indeed overtaxed but funds are spent disproportionately in very unnecessary areas.

Geddes, throne (2008, touch). An Election Bud enamour After All. Macleans, 121(9), 20-21.

Retrieved serve 21, 2008, from [Research Library] database. (Document ID: 1445715811).

Used to provide evidence of growth in GDP and standard of living in order to support the select that decreasing taxes has positive consequences.

Gnaedinger, Charles (2007, October 8). Canada Wins eBay Tax Information Case.

Country Digest, p.136. Retrieved March 3, 2008, from [Tax Notes International] database.

This was evidence provided to show an additional stream of revenue that the government might be receiving and consequently to support the claim that politicians do not need to raise taxes when there is enough revenue in the system. It connects with the idea from the previous article that Canadians are being overtaxed but funds are not evenly distributed in the systemJackson, Randall (2008, March 3). Budget Calls for Carbon Tax. Country Digest,p. 739.

Retrieved March 3, 2008, from [Tax Notes International] database.

This was an example of the latest tax issue used to discuss the negative consequences of raising or introducing new and additional taxes into the system.

Kelly, Patrick (2006, February 1). Ontario raises taxes on a carton of cigarettes byanother $1.25 :[Toronto Edition]. National Post,p. A11. Retrieved March 26, 2008, from [Canadian Newsstand Major Dailies database]. (Document ID: 980521801).

Kelly?s article aided in providing an example of one of the areas where the government has raised the tax in good intentions to discourage the act of smoking.

Luik, John (2004, May 19). Hiking taxes wont lower smoking rates :[NationalEdition]. National Post,p. FP19. Retrieved March 20, 2008, from [Canadian Newsstand Major Dailies] database. (Document ID: 642210531).

Luik?s article proved very well the negative effects from raising taxes in an area such as smoking and thus provided a gene linkage with and reasoning for the first article. The title is self-explanatory.

Luik, John (2004, May 19). Hiking taxes wont lower smoking rates. National Post(Index-only),p. FP19. Retrieved March 26, 2008, from [CBCA Current Events] database. (Document ID: 668914751).

This was merely an list that provided another link to the Canadian Newsstand Major Dailies database for the previous full abstract of the article. In other words, it led me to a choke-full version of the text with additional information.

Menon, Nirmala (2008, March 25). Canada Retail gross sales +1.5% in Jan from Dec. DowJones Newswires. Retrieved March 10, 2008, from [Factiva] database.

This provided yet another confirmation to the claim that lowering taxes has positive consequences. Thus, politicians should be nervous about utterance or even thinking of raising taxes.

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