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40% of Canadians don’t pay income taxes, which means someone else is picking up the bill
February 7, 2019
8:43 am
Top It Up
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From Ted Rechtshaffen in the National Post -

40% of Canadians don’t pay income taxes, which means someone else is picking up the bill

Many people were upset with Prime Minister Justin Trudeau this week for saying “low-income families don’t benefit from tax breaks because they don’t pay taxes.”

Of course, some were upset because they felt it was untrue. But Trudeau was speaking the complete truth when it comes to income taxes (HST, realty taxes and other consumption taxes are another story). It is just a truth that he may not want many Canadians to know.

On average, two of every five Canadian households do not pay anything towards federally and provincially funded expenses such as health care, education, community and social services, national defence, public safety and even the good old Canada Revenue Agency. One household of every five pays much more than 70 per cent of all of those costs.

It didn’t used to be this way, but it is now.

https://business.financialpost.com/personal-finance/taxes/trudeau-is-right-40-of-canadians-dont-pay-income-taxes-which-means-someone-else-is-picking-up-the-bill

February 7, 2019
10:50 am
Vatox
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That was just pointing out tax benefits for raising children. Or did I miss something. And raising children is super important if we want the economy to roll on in the future.

February 7, 2019
12:02 pm
SaverJunior
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The Federal personal (income exemption) amount is $11635 on T1 general tax return. Any declared income over this amount is subject to income taxes.

I find it hard to believe 40% of the Canadians are declaring less income than this. 4% is more like it. Typo?

February 7, 2019
12:40 pm
Vatox
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I’m thinking something similar. Where is the full list of tax credits and benefits. The article simply states the amount.

February 7, 2019
1:05 pm
Kidd
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The 40% number IS most likely correct. Demographics are... approximately 18% of Canadians are too young to work.

I would have posted the picture but i've lost that privilege. sf-surprised

http://www.ccsd.ca/factsheets/.....ographics/

February 7, 2019
1:15 pm
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Plus, factoring in well-documented high incidence of unemployment/social assistance in certain demographics. Pretty easy to get to that 40% number.

February 7, 2019
1:46 pm
Vatox
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Lol, the article is simply misleading If people, not earning income, are included in that 40%. The impression given by the article, is that a lot of people in Canada are not paying their share of income tax. Well okay then, let’s get the whip out and get those 6 year olds pulling their weight, ludicrous.

February 7, 2019
1:48 pm
Vatox
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Top It Up said
Plus, factoring in well-documented high incidence of unemployment/social assistance in certain demographics. Pretty easy to get to that 40% number.  

The article mentions nothing about unemployment and social assistance. It simply states the income and taxes paid.

February 7, 2019
1:55 pm
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From the article -

The Fraser Institute’s Canadian Tax Simulator 2017 looked at Canadian households with income ranging from zero to $80,843 ...

February 7, 2019
3:34 pm
2of3aintbad
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40% of Canadians or 40% of households? If you have one wage earner paying substantial taxes, one stay at home spouse taking care of one child, you have 67% not paying tax. So what?

February 7, 2019
4:31 pm
Norman1
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It is actually 40% of households (not individuals) who pay no net tax (not no income tax).

Some of those households do pay some income tax. But, the household may receive enough Canada Child Benefit, Ontario Trillium Benefit (includes Ontario Energy credit, Northern Ontario energy credit, and Ontario sales tax credit), or GST/HST tax credit to offset the income taxes paid.

February 7, 2019
4:41 pm
Vatox
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Reading the article, leads to only one conclusion.. Lower income families with children are not paying income tax and therefore someone else is paying for whatever government run services are being used. There is nothing else in the article.

February 7, 2019
4:47 pm
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The top 20 per cent is likely paying 70 per cent or more of all income taxes

So when they say make the rich pay, the rich are already paying the freight.

February 7, 2019
5:20 pm
Loonie
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Tempest in a teapot.

How could anybody take this journalist seriously as an objective reporter?
First he quotes Trudeau as stating that “low-income families don’t benefit from tax breaks because they don’t pay taxes.” Then he claims that Trudeau “may not want many Canadians to know” this fact. You can't have it both ways, guy.
However, undeterred by this limitation, he marches on, presenting selective data from the equally unobjective Fraser Inst.
Give me a break!

(EDITED after Vatox's subsequent comment. He may not agree with my comments.)

February 7, 2019
5:36 pm
Vatox
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Agreed, but why does the article talk about a family with three kids and has a title mentioning 40% of Canadians don’t pay income taxes? Is the article then saying that 40% of the population resides in family units with children and that those living in that family unit aren’t paying income tax? Because it is pretty harsh to say the three children aren’t paying income tax and also harsh to say that the two working parents should pay full income tax while raising our country’s future. I’d like to know who is included in that 40% and whether it’s just working age adults. Why aren’t retired seniors talked about? Why aren’t single adults and childless couples mentioned? Just reading the article on its own merits paints a picture of families with children are deadbeats. That’s harsh.

February 8, 2019
9:32 am
Vatox
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Quite right Loonie. Your comment was not on my screen when I wrote my reply. I had not refreshed the screen in a while as I was responding to the comment above you.

February 8, 2019
10:05 am
SaverJunior
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I was thinking the unemployment rate in Canada thru the years were like 5 to 8 percent. How can 40% of Canadians are not paying taxes?

If the journalist is using his or her counting method (such as Canadian babies) to come up that 40% Canadians are not paying taxes, that same method I suspect can also conclude that 40% of Americans (or any country) are not paying taxes either.

It is not fake news but it is not some information that one can draw any decisive conclusion out of it. The purpose of this headline is just boosting the sales of the newspaper. It certainly will catch people's attention. It catches ours, isn't it?

February 8, 2019
10:10 am
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SaverJunior said
I was thinking the unemployment rate in Canada thru the years were like 5 to 8 percent. 

The unemployment rate is ONLY a measure of those actively looking for work - it does not measure demographic groups with high, non-job seeking "unemployment rates."

February 8, 2019
12:25 pm
canadian.100
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Agree - the journalist could have been more clear in his comments - but it is the Prime Minister from whom I would expect better than saying what he did. I think Mr. Trudeau is demonstrating more and more that he is simply out of his depth.

February 8, 2019
5:07 pm
Vatox
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Here is a report from 2009 for B.C.

http://www.urbanfutures.com/tax-payers/

Of the filed tax returns(age 15 and over), 35% were non taxable.

With aging demographics, it may very well be currently 40%. I’m sure every province will have different distributions.

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