Chap4-The Income Tax History of Canada

Summery: As the topic we see, the article is basically all about the income tax history of Canada. The government of Canada did not charge income tax to encourage immigration to Canada. Since 1917, Canada charged income tax, because that was World War 1 period. “In 1917, the cost of participating in World War I had become too great, and the government was forced to temporarily adopt an income tax system in order to finance the war effort.” The Minister of Finance, Sir Thomas White has processed the “war” income tax.

Connection: In chapter 4, we learn the different kinds of taxes. Income tax belong to direct tax, which is a tax imposed on the person who is intended to pay the tax. All those money is used to provide public services to Canadian citizens, such as health care and education. Canada is a federalist country, so that the central government and provincial government have jurisdiction over each citizen. But all the income tax goes to the federal government, and the federal government distributes the money to provincial and central government. That’s where our tax goes.

Reflection: As we know, Canada’s welfare is one of the best in the world; most of the public services are free, or very cheap to pay. That is because Canada’s taxes rates are also one of the highest in the world. Some high income people pay almost one third of their incomes. In addition, we need to pay tax for all the goods we purchase, no matter just a bottle of drink, or a piece of bread. People basically agree that Canada’s taxes rates are too high. Looks like all the rich people pay their money to feed the poor people, to lower the disparity of the rich and poor people. Somehow this is a good method, but we all got annoying when we are buying goods.
Website: http://www.ehow.com/about_5379709_income-tax-history-canada.html