The current tax system in Canada is inefficient and backward. Not only are taxes to high and complicated but they are paid to the wrong government. See “New Alberta Tax System” plan detailed below.
New Alberta Tax System: The Plan
All taxes in Alberta should be collected by the provincial government and then a transfer payment would be paid from the provincial government to the federal government to pay for federal responsibilities like the Armed Forces. If Quebec can control its own immigration, Alberta could control its own tax system.
To be put in other words, Alberta should collect federal taxes on behalf of Albertans and then pay their proper share to the federal government. This would eliminate the backward system of taxes paid by Albertans to the federal government and then being transferred back to Alberta.
This new Alberta tax system would also eliminate the need for federal transfer payments to Alberta. Alberta’s constitution lawyers would have to work hard on this one but is possible.
Once this tax problem in Alberta is corrected, a plan can be made to make the Alberta tax system fairer. Basing tax from income is not the best and fairest way to collect tax. Taxes should not be based on how much income you earn but how much you spend or consume. The more you spend the more tax you pay. In the United States this is called the “Fair Tax Law” proposal.
However, as stated earlier in this letter I proposed a no Provincial income and sales tax, but to rather Collect all taxes on behalf of Albertans. This plan would eventually in the future be replaced by the Fair Tax system.
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