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How proposed tax changes target income sprinkling

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David McDonald

Mark Reid, I have just read your response to my comment. Perhaps I should not have used the words “fair rate” since I did not think that they would have been interpreted in a technical way. I cannot truly believe that anyone actually would state, “Oh, I am not going to work overtime and be paid more money because I will have to pay more income tax.”

Wednesday, Aug 30, 2017 at 9:55 am Reply

Mark Reid

David a fair rate would be a flat tax rate, where everyone pays the same amount of tax on every dollar. However, with a progressive tax rate, getting taxed more for additional dollars earned, creates a disincentive to earn more money, especially when tax strategies are eliminated. From the example it can be seen that there is less money in the corporation for investment, which further reduces funds in the private sector. All this is doing is putting more money into the public sector, and their investment strategies are questionable at best.

Tuesday, Aug 22, 2017 at 12:29 pm Reply

David McDonald

I am not sure why this raises hackles. The sample reads like a case of tax avoidance. Neither child supplies any benefit to the corporation. Why should income tax not be paid at a fair rate?

Wednesday, Aug 9, 2017 at 3:54 pm Reply