Monday, August 29, 2011

This study from the Canadian Centre for Police Alternatives puts some figures to a trend that many of us have already figured out - the tax burden has shifted significantly in B.C. in the last 10 years in ways that leave high earners paying less and the poorest paying more. Not too surprising that voters defeated the HST given that reality.
When taxes decrease for people with higher incomes, it also has a disproportionate effect on the tax base. A one or two per cent tax reduction on an income of, say, $300,000 is significantly more of a loss than can ever be made up through a corresponding one or two per cent increase for the province's lowest earners.
What does it mean for the rest of us? Less money for government-funded services, the risk of rising social disorder, government spending at the most expensive end of the scale due to the savings of today morphing into the ballooning costs of tomorrow.
With reduced investment in preventive services and strategies due to sinking tax revenues,  future generations can expect to spend much more covering the increased costs for health care, courts, police and jails once all those people who aren't getting the help they need now run into major problems down the line.
Yeah, yeah - heard it all a million times before. But only because it's true. 

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