Plenty of ways to do it, none popular .... Introduce a progressive rate of income taxation (10% for low income, rising to 40% + for those earning over $200k), force government agencies to find cost cutting measures of 10%, or cut their budgets by 10%. Make companies who have their HQ's in tax havens yet have most of their staff and do most of their business in the US, move their HQ's back to the US. Actively chase down private citizens who offshore their earnings to avoid tax. Instead of pumping billions in to the banks as a quantative easing measure, which probably doesn't go anywhere but the bonus pot.... give that money out as vouchers to the public that have to be spent on certain consumables in industries that are struggling, By consumption tax do you mean what we have as Value Added Tax (VAT) - whereby 20% is added on to the value of the goods at sale?
Does this mean you would make The Rolling Stones come home to England? Yes that is what they mean but OUCH! 20%? Is that what you are paying over there? Come to think of it I guess it isn't too far off from some of our provinces at around 15% combined federal and provincial. We're lucky in Alberta. Only the 5% GST or VAT as you know it.
Yeah it's on EU & UK goods & services, but not all, like food is exempt I think and some other items are at a reduced rate, but petrol isn't - so we pay double on that - an initial duty, and then 20% VAT at the till, happy days! Oh and you can keep the stones, probably costs more to keep them going than what they are worth haha!
You know..I just read somewhere that a woman actually invented beer. A priestess in ancient Egypt. Do know if that's true but if it is...What a woman!!!
I guess I should be really in favor to the GST tax in Canada. It sure helps our economy on this side of the border. Go to any mall in the Buffalo area and you'll see a ton of Ontario plates. Canadians love to come over to this side of the river to escape the good old Goods and Services Tax in Canada. As Rod Roddy used to say on The Price is Right, "Come on Down!"
There is an effect, even in Alberta where the rate is only 5%. However it did replace a much higher tax on goods only (so no restraunt meals etc) that was if I remember right about 13%. There are other levels of taxation and costs associated with bringing manufactured goods in from the states that keep our prices higher. this doesn't include what I could call gouging on the part of companies as well. I am in the process of buying a truck which will cost me 39k here as opposed to somewhere stateside where it would liekly be closer to 32-33k. The actual GST while it has an emotional effect (since you see it on your reciept) really doesn't have too much of a real monetary effect. Besides, if you guys ever want to balance your budget it's inevitable there are going to have to be some tax increases in my opinion.
There is no question that we will have to raise our taxes here to balance the budget. It will just have to happen because noone seems to really want to cut expenses. Sadly entitlements are the drug of government. Once you start the population on them they can't give them up. The druggies have their crack and their cocaine and government has their entitlements.
Dos Equis, are you aware that Pensions, Heathcare and welfare are 60% of the federal budget. With out major cuts to these a balanced budget is impossible. I might also point out that many people in the US not only dont pay any income tax, but they get a rebate via a earned income tax return. In your country everyone pays at least some tax. As it is now in the US the top 25% pay 86% of the taxes.The top 25% is anyone over $66,000 per year. One other thing I might point out is it pertains to per capita health care spending that the US spends more than twice what Canada does. Clearly health care and SS must be pared back.
For Social Security to be reformed would take a massive effort. First, you would have to have the politicians admit that it really isn't a pension plan but really more of a Ponzi scheme. We are paying in now for those that are drawing now. Then we would have to change that way the plan is administered and start a phase out of benefits at maybe $100,000 and capping out at $250,000. If you are retired and making over $250,000 a year you really don't need Social Security and shouldn't be receiving it. Another change would be to make Social Security Disability harder to get. I know more than just a few people who are on disability who are very capable of working but won't because the government is taking care of them. The next change I would make is to change Medicare. If you are still working you should be able to use your own health insurance and not be FORCED to take Medicare. That is the way the system is right now. Once someone reaches 65 they HAVE to take Medicare even though their own existing insurance may be cheaper and have better coverage. I would also get the health insurance companies out of the business of politics. The "free" add on insurance that people receive who are on Medicare also cost the taxpayers $881 a month per person on Medicare. Add that to what an individual may pay of as much as $260 a month for their Medicare and you have a single policy costing over $1100 a month. Much was made of AARP supporting Obamacare. What wasn't mentioned is the massive profit that AARP makes on their health insurance business. A profit that will increase substantially once Obamacare is fully installed. If AARP wasn't allowed to be in the insurance business I can guarantee they wouldn't like Obamacare.
