How Taxes Work . . .

[01RedDX]

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[benyl]

pretty smart.

[Cavey]

[Hakkola]

Very well said.

[SOAB]

Originally posted by Cavey

you must be one of the 4 that eat free

[Cavey]

Originally posted by SOAB


you must be one of the 4 that eat free

Well I am sure not guy number 10



Yet.

[Nova316]

Thats actually pretty interesting

[frostyda9]

Originally posted by 01RedDX
Tax them too much, attack them for being wealthy, and they just may not show up at the table anymore.

Attendance at this hypothetical "table" is not voluntary.
If the rich man never eats dinner, eventually he starves to death.

[Roaring G60]

Yes, but the tenth man can go to a different restraunt (ie: country) that does not tax him at the same rate!

[FatboyTheHungry]

there are better restaurants out there

[frostyda9]

Originally posted by Roaring G60
Yes, but the tenth man can go to a different restraunt (ie: country) that does not tax him at the same rate!

Is it possible? Sure. Is it likely that all the rich people in Canada will migrate somewhere else over a taxation quibble? No, it'll never happen. It's about more than taxes. If you make seven figures a year, are you going to uproot your family and flush your contact network down the drain over a hundred grand a year? Are you going to be so greedy as to live in a country with a lower overall standard of living just to make a *little* more? I really doubt it.

[max_boost]

haha that was great.

[rage2]

Originally posted by frostyda9
Is it possible? Sure. Is it likely that all the rich people in Canada will migrate somewhere else over a taxation quibble? No, it'll never happen. It's about more than taxes. If you make seven figures a year, are you going to uproot your family and flush your contact network down the drain over a hundred grand a year? Are you going to be so greedy as to live in a country with a lower overall standard of living just to make a *little* more? I really doubt it.

It happens all the time. There's a reason why a lot of rich people live in places like Monaco and other tax havens, and spend less than 183 days a year in Canada for work, being with friends, etc.

If you think Monaco is a place with a lower overall standard of living than Canada, you're on crack.

[googe]

Not only that, but there are lots of ways of having a tax shelter without leaving the country. Get an overseas bank account, register a business overseas, and leave all your money in there. You can also exploit many tax loopholes without having to do anything overseas.

[rage2]

Actually CCRA is very strict on residency and taxability on individuals, so you have to be really careful. There's a lot of Hong Kong celebs that lives in Canada (Vancouver) that got owned for income taxes a few years ago because they own a home in Vancouver, even though they've never earned a dime here. All their income was from Hong Kong.

http://www.cra-arc.gc.ca/tax/nonresi.../deemed-e.html

[benyl]

Originally posted by frostyda9


Is it possible? Sure. Is it likely that all the rich people in Canada will migrate somewhere else over a taxation quibble? No, it'll never happen. It's about more than taxes. If you make seven figures a year, are you going to uproot your family and flush your contact network down the drain over a hundred grand a year? Are you going to be so greedy as to live in a country with a lower overall standard of living just to make a *little* more? I really doubt it.

Hong Kong, Cayman Islands, Isle of Man (there is one guy on beyond that I know who's business is based there for tax reasons).

Paul Martin's family owns a Ocean going shipping company where all his ships are based out of ports outside of Canada. The company is called Canada steamship lines (or something like that). Many, many people do this. Many, many large corporations threaten to leave and go south of the border all the time over thing like taxes, Kyoto, etc...

[pinoyhero]

Nicely put.

[frostyda9]

The government has obviously thought about this situation.
If they set taxes at a level they deem to be acceptable for high income earners, they have without a doubt weighed the
consequences of a) lowering taxes and keeping more people within the country, and b) keeping taxes where they are and continuing to collect the tax at the higher rate albeit with a reduced volume than might be possible.

It is the perogative of the government to collect as much money as possible while retaining the best possible satisfaction rating of it's citizens. If you drop taxes for white collars, blue collars resent it. Add to that there is no guarantee that dropping taxes will promote any more people to stay in Canada than currently do, and it's not what I'd call an easy win-win situation. People that have become accustomed to paying no tax are not likely to be swayed by the lure of "less tax".