A Fairer Taxation Method

The current taxation system used in Canada is unfair and a huge administrative nightmare. Is there a solution to this? Not a system that would keep everyone happy, no. However I believe I have a system that might be better then what we have at least.

Income Tax

Income tax is massively unfair and requires a team of accountants to do the more complex returns. Why not eliminate it? Income tax makes no real sense, an entirely sales tax based system makes more sense. Don’t get me wrong, employers should still have to pay a tax based on how much they pay employees, but that would be a more services tax since they are paying for a service from their employees.

Sales Tax

I admit with my method some of the complexity that was within the Income tax portion of taxation gets moved over to sales tax, but in our modern age this should not really be a big deal. Naturally with the elimination of Income Tax Sales Tax would increase substantially. However not everything would be taxed equally. A tier based tax would be instituted based on how essential the item was. For example on food their would be two taxation rates, one for essential foods like bread, meat, milk, fruits, and vegetables, and another higher rate for junk foods. This would serve a dual purpose, with healthy food having considerably less tax on it then junk food the consumption of healthy food should increase reducing the over all obesity of Canada, with a low enough rate on the essentials it would keep tax rates low for low income families. For other items there would also be varying rates depending on how essential it is with things like gas guzzling SUV’s, cigarettes, liquor, and marijuana, having the highest sales tax rate while things like clothing, and shelter, having the lowest tax rates.