To the editor:
Taxes in Canada are collected from individuals and companies, and changes to how we collect taxes in the last 30 years have contributed to the current state our economy.
The richest five per cent of Canadians have been getting richer over the last 30 years, and the poorest 95 per cent have been getting poorer. Once adjusted for inflation, the average hourly wage in Canada has been stagnant since 1985.
Families have paid higher costs for the same standard of living even when our wages have been stagnant. Canadians did this by using three methods: we began working more hours every week; we changed our societies so that both parents can work; and we took on more debt.
This trend needs to be changed. Our economy is failing because the middle class no longer has enough money to spend. The richest five per cent only need so many restaurant meals and new shoes. Without the remaining 95 per cent of us spending money, there will be no lasting economic recovery.
The policies that have allowed for the economic growth during the last 30 years have become outdated. We need policies that support the average Canadian.
The Green Party of Canada is willing to take new direction. Increasing the income tax on people making more than $160,000 annually and decreasing the income tax rate for everyone else will begin to reverse the economic conditions that took three decades to develop.
We should also replace the Goods and Services Tax (GST) with a tax that varies for each item depending upon the environmental damage the item’s production created. This tax will not be collected from the consumer; it will be collected from the manufacturer.
Once these new policies are in place the remaining five per cent of Canadians will still be making more money. However, this will be a result of the companies they manage or invest in doing better (not because they have paid less income tax). Companies do better when 95 per cent of the people have more money to spend.
The richest five per cent of Canadians must begin paying the tax rates they paid 30 years ago. We need this in order to provide our government with the financial resources necessary to get our economy moving.
Kevin Ortner, BScW
Federal Green Party representative
Kamloops-Thompson-Cariboo
