7.5 The Canadian Welfare Society Canada’s mixed economy is known as a Welfare Society – Gov’t...
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7.5 The Canadian Welfare Society Canada’s mixed economy is known as a Welfare Society – Gov’t plays big role to ensure well-being of its citizens Government
7.5 The Canadian Welfare Society Canadas mixed economy is known
as a Welfare Society Govt plays big role to ensure well-being of
its citizens Government Transfer Payments (CPP and EI) and Personal
Income Taxes try to address the goal of income equity
Slide 2
Transfer Payments & Income Equity Universality: the
principle that benefits apply to all individuals, no matter their
incomes Means Testing: the more recently implemented principle that
transfer payments vary according to a recipients income
Slide 3
Taxes & Income Equity The principles of Benefits Received
and Ability to Pay help decide whether or not the burden of a tax
is distributed in a manner fair to all taxpayers. Benefits
Received: Principle that suggests that taxes should be geared to
the benefits each taxpayer gains from government activity. e.g.
sometimes proceeds from gasoline tax are used for road construction
& maintenance places where people drive more will have better
roads Ability to Pay: Principle that suggests that taxes should
vary in proportion to a taxpayers income if you earn more, you are
taxed a higher percentage than someone who earns less
Slide 4
Taxes & Income Progressive Tax: A tax that increases as a
proportion of income as the taxpayers income increases Regressive
Tax: A tax that decreases as a proportion of income as income
increases Proportional Tax: A tax that remains constant as a
proportion of income.
Slide 5
Taxes & Income Equity Sales/Excise Tax: Regressive Property
Tax: Regressive (poor devote a higher percentage of income to
housing than the rich) Personal Income Tax: Progressive