ALTERNATIVE MODELS OF TAXATION In Canada

This study examines and assesses the Canadian taxation structure within the context of alternative taxation models and alternative taxation policies. A substantial proportion of Canada's population assails the Canadian tax system, while simultaneously outside of Canada organizations such as the United Nations rank Canada at or near to the top of the list as the best country in which to live. Obviously, the country is doing something right. Nevertheless, there is always room for improvement in the realm of taxation. Further, changing environments frequently demand adjustments to taxation systems as a minimum and fundamental changes to such systems in some instances.

This study begins with a conceptual review of taxation theory, models of taxation systems, and taxation policies. An analysis and assessment of alternative models of taxation systems and alternative taxation policies follows the conceptual review. Following the assessment of alternative models and policies, a description of the taxation system in Canada as it exists in 2001 establishes a baseline for further sections of this study, which (1) assess the conceptual position of the Canadian taxation system within the context of alternative taxation models and policies and (2) evaluate the effectiveness of Canada's taxation system within the context both desirable societal outcomes and the recomm

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with the problem of inflationary distortion of capital gains taxes by indexing tax brackets to general price level changes in the economy. Schall pointed out, however, that indexing, as is true of tax rate reductions, does not cure the problem of inflationary distortion. Rather, it simply attempts to ameliorate the effects of such distortion. Any action that either moderated the effects of the inflationary distortion over the long-term, or eliminated the inflationary distortion on capital gains taxation, however, would have positive effects in the economy, because such action would stimulate investment. One last comment is in order on the distortionary effect of inflation on capital gains taxes. The last time that the general price level in the economy decreased on a year-to-year level was 1955. During the seven-year time period 1949-1955 inclusive, however, the general price level decreased in two of those years. It is not unrealistic, therefore, to assume that, at some point in the future, decreases in the general price level will, once again, occur. In such a situation, the real capital gain would be greater than the nominal capital gain, and the deflationary distortion on taxes would benefit the taxpayer. If changes
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Some common words found in the essay are:
Debt Debt, Ligthart Frederick, Theoretical Explanation, Taxation Policies, Capital Gains, Adam Smith, Joseph Stiglitz, Models Taxation, Effective January, Taxation Policy, capital gain, income tax, tax rate, taxation policies, real capital gain, real capital, real income, capital gains, effective tax, taxation structure, inflationary distortion, effective tax rate, nominal capital gain, canada's taxation structure, alternative taxation policies,
Approximate Word count = 6650
Approximate Pages = 27 (250 words per page)

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