Successfully reported this slideshow.

Redistributive of Effects of Income Taxation in Canada

794 views

Published on

Redistributive of Effects of Income Taxation in Canada.

A research paper about the quality of the redistributive effects of Income Taxation with the help of the country Canada

Published in: Business, Technology
  • Be the first to comment

Redistributive of Effects of Income Taxation in Canada

  1. 1. Redistributive Effects of Income Taxation in Canada<br />By Philipp Muedder (i419605)<br />
  2. 2. Agenda<br /><ul><li>Problem Statement
  3. 3. History of Income Tax
  4. 4. Federal Government Revenues
  5. 5. Provincial Income Tax
  6. 6. Canada Income Tax System
  7. 7. Measure of Progressivity
  8. 8. Conclusion </li></li></ul><li>Problem Statement<br />‘How does the current personal income tax system support the progressivity and therefore the redistributive effects of personal income tax within Canada?’<br />
  9. 9. History of the Income Tax<br />Prior to World War 1<br />No income taxes on personal as well as corporate<br />Trying to attract immigrants<br />During and after the War<br />High expenses led to the Income War Tax Act in 1917<br />Tax remained even though it was meant to be temporary<br />
  10. 10. History of the Income Tax<br />
  11. 11. Federal Government Revenue<br />Income taxes make up about 70% of total Government Revenue<br />Government highly dependent on Taxes<br />
  12. 12. <ul><li> All provinces have separate income taxes on top of the federal income tax rate
  13. 13. Quebec is the exception </li></ul>Provincial Taxation<br />
  14. 14. The Canadian Bracket System<br /><ul><li> Example shows the Ontario tax rate
  15. 15. Is a system that uses progressivity
  16. 16. Rich people pay more and poor people less taxes
  17. 17. In line with the Ability – to – pay principle</li></li></ul><li>Measures of Progressivity<br />The Lorenz Curve<br />Graphical Tool<br />Straight line shows perfect equality<br />Inequality is shown by line below the diagonal one<br />
  18. 18. Measure of Progressivity<br />Gini Coefficient<br />Numerical approach<br />Takes minimal value of 0<br />Maximum value of 1<br />Canada among the top 3<br />On right track with redistribution <br />
  19. 19. ‘How does the current personal income tax system support the progressivity and therefore the redistributive effects of personal income tax within Canada?’<br />Conclusion<br />
  20. 20. Conclusion <br />Closing the Gap of Income Inequality<br />Gini Coefficient suggest Canada is on the right path<br />Tax brackets are adjusted annually for progressivity<br />
  21. 21. Thank you for listening<br />Any Question?<br />

×