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  #1  
Old Posted Jun 29, 2009, 5:43 PM
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10% flat tax in Sask?

Saskatchewan urged to adopt 10% flat tax

REGINA -- Enterprise Saskatchewan is recommending the province adopt a flat tax.
Under a flat tax, everyone, rich and poor, would pay 10 per cent on all their income. The Enterprise board says it's necessary to avoid investment moving to Alberta.

It also recommends the Saskatchewan government implement a corporate tax rate of 10 per cent.

Enterprise minister Ken Cheveldayoff says the proposals make sense.

NDP finance critic Trent Wotherspoon says the party is open to making the province more competitive, but adds he has a problem with tax cuts that would mostly benefit the wealthy.

Wotherspoon says the recommendation should go to the legislative economy committee for thorough discussion.

He wants to know who would really benefit, and how much it would cost.


-- The Canadian Press

Republished from the Winnipeg Free Press print edition June 29, 2009 B7
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Old Posted Jun 29, 2009, 5:55 PM
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I completely and whole heartedly support this proposal.

It is stange to hear the NDP support this proposal in anyway, but I guess they realize that they lose what little economic credibility they have if they didn't at least show luke warm interest. Of course they go on to say that this will mostly benefit the wealthy.

Newsflash to the NDP .... it is ussually the weathy who have the means to invest, which this proposal is trying to keep those investment funds within the province of Saskatchewan and attract funds from out of province. So decide what is most important; 1) attract investment funds to the province to help support the local economy, or 2) not chase it away. Investors are looking for a certain rate of return and high taxes eat into those returns, thus will make higher taxed regions far less attractive.

This will be very good for Saskatchewan and I think this has a very good chance of becoming law.
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  #3  
Old Posted Jun 29, 2009, 6:48 PM
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that would be nice then it would not punish you for making more money
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  #4  
Old Posted Jun 29, 2009, 10:31 PM
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that would be nice then it would not punish you for making more money
Very true ... and it would not punish local companies who are located there, who want to attract more capital.
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Old Posted Jun 29, 2009, 10:44 PM
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I wonder if a 10% flat tax would be on all personal income, of if it would only apply your income above a certain minimum threshold?

(ie., a minimum amount of tax free income for everyone, if set at the right level, may ensure that the poorest people's taxes do not increase beyond current levels).

Anyone know if Sask be the first province to have a flat tax, if this goes through?
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  #6  
Old Posted Jun 29, 2009, 11:06 PM
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Anyone know if Sask be the first province to have a flat tax, if this goes through?
http://www.cra-arc.gc.ca/tx/ndvdls/f...tml#provincial
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  #7  
Old Posted Jun 29, 2009, 11:09 PM
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I would support it if that 10% went primarily to those too poor to pay this (there's a reason it's called) regressive tax.
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Old Posted Jun 29, 2009, 11:27 PM
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The basic tax exemption would still exist... so the first 10 thousand or so would still be tax free.
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Old Posted Jun 29, 2009, 11:55 PM
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I would support it if that 10% went primarily to those too poor to pay this (there's a reason it's called) regressive tax.
I can assure you that far beyond 10% of taxes collected is used to support those who do not earn income.
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Old Posted Jun 30, 2009, 3:15 AM
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The basic tax exemption would still exist... so the first 10 thousand or so would still be tax free.
I would definitely support it then.

It's amazing how much money is lost just deciphering our complex tax system.
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  #11  
Old Posted Jun 30, 2009, 3:38 AM
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so true so true
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  #12  
Old Posted Jun 30, 2009, 4:24 AM
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I think the limit should be the first $20,000 of income is tax free, which is the Green party proposal. (Though they use a progressive scale.) People making less than about $20,000 get most of their taxes back through support programmes anyway, so why go through with the unnecessary bureaucracy?

I'd also like to see an increase in sales tax to balance the decrease in income tax, but with more exemptions. Things like toilet paper and feminine hygiene products are necessities and shouldn't be taxed like they are now.
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Old Posted Jul 3, 2009, 4:27 AM
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Originally Posted by newflyer View Post
Investors are looking for a certain rate of return and high taxes eat into those returns, thus will make higher taxed regions far less attractive.
I am unsure of the correlation between personal income tax and, presumably, foreign based investment, and also the notion that taxation level has more of an impact than other factors, i.e. infrastructure, workforce, level of education, demographics, etc, in determining the prime location for investment. Could you perhaps explain this logic Newflyer, as you are obviously a proponent of this plan and, from other posts by you, a devotee to the neolib/neocon school of economic thought.

ps, first time poster, long time lurker
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  #14  
Old Posted Jul 3, 2009, 5:27 AM
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the lower taxs have to do with maximizing profits for big corporations why u think city, wells fargo, First Premier Bank, tcf are based in sioux falls south dakota
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  #15  
Old Posted Jul 3, 2009, 6:35 AM
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the lower taxs have to do with maximizing profits for big corporations why u think city, wells fargo, First Premier Bank, tcf are based in sioux falls south dakota
That explains the corporate tax aspect, but what about the personal income tax. if they want to lower corporate rates, that makes at least some sense for increasing foreign investment in the province, but it just seems like they're lowering taxes so the rich can pay less. Also, if they are trying to entice financial services companies, Wells Fargo, Citi, TCF, etc it seems that they are doing this only for the benefit of the upper class, as investment in education of first nations ppl, infrastructure, urban housing, alternative energy sources for example, can have long-term social and economic benefits that will be more equitable. This just seems like the beginning of a slippery slope towards privatized everything and an increase in income disparity. Turning sask into a short term tax shelter for international banks just dosnt seem like diversification to me.

Last edited by PoloniumMan; Jul 3, 2009 at 6:37 AM. Reason: forgot something to say
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Old Posted Jul 3, 2009, 6:41 AM
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true bit theres a bunch of stuff at play also
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  #17  
Old Posted Jul 4, 2009, 9:22 PM
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Quote:
Originally Posted by PoloniumMan View Post
I am unsure of the correlation between personal income tax and, presumably, foreign based investment, and also the notion that taxation level has more of an impact than other factors, i.e. infrastructure, workforce, level of education, demographics, etc, in determining the prime location for investment. Could you perhaps explain this logic Newflyer, as you are obviously a proponent of this plan and, from other posts by you, a devotee to the neolib/neocon school of economic thought.

ps, first time poster, long time lurker
Not to minimize years of study and even more years of experience in finance, but I will try to answer you inquiry within this limited thread. First off I never mentioned foreign investment particularily, but it as with all levels of investment actively looks to locations which offers adaquate levels of return to offset the underriding levels of risk. As corporate tax is an expense on success (profitable operations) and a deterant on expansion, it does not benefit any society to have tax levels which are not in line with neighbouring regions, or not competitive with the agrigate marketplace, if it wishes to incourage corporate expansion. Just to be clear one the largest benefits of an expanding corporate base, is an increase demand for workers, which in the long run helps supports higher wages. More workers means more tax payers and an expanded tax base.

Investment capital is extremely liquid, which means it can and does flow as investors see fit everyday. If one region is precieved to be uncompetive then investment capital will flow away from it, just as water flows away from higher land. If you examined capital flows you would understand that as clear as day. As with most first world economies, the largest investors in the local economies are from local residents, but if local investors are not attracted to the local economy, this can have a significant impact on the long term viability of that economy. This is what the Enterprise Saskatchewan has identified.

I am not suggesting that lowing Saskatchewan's taxes will entice any large financial companies into locating into the province, but it will assist local enterprises in attracting investment capital and thus assist in the expansion of Saskatchewan's economy.
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