|
|
| |
| Home » Information on Income Tax » Lifetime |
| |
Lifetime Income Tax |
|
|
Lifetime income tax is a totally new kind of concept. This is actually a proposal made by a few economists and politicians. This proposal speaks for the imposition of tax on the basis of the cumulative life time income of a person. Income tax in all countries are imposed on the annual income of a person.
The main man behind this idea of lifetime income tax is Roger martin. Roger martin, a famous economist of Canada is the dean of the University of Toronto's Rotman School of Management.
The major supporter of the concept of lifetime income tax is Tony Clement, the former health minister of Ontario and the candidate for the leadership of the conservative Party of Canada. Tony Clement is a major supporter of reform of tax code in Canada.
|
The plan of Canada envisages a new concept in taxation. Those people who have earned less than $250,000 need not to pay income tax. Those persons who have earned between $250,000 and $5000,000 will pay an amount of 14% of their total income. Those persons who have earned between $
501,000 to $750,000 will pay a tax of 24% of their total income. Persons who have earned more than $1 million will pay 27% tax of their total income.
The advantages of lifetime income tax:
This kind of taxation will be beneficial for those who have moved from low income group to high income group
This would make any yearly fluctuation of tax paid by any individual
This may stop brain drain from Canada to USA
This kind of taxation will put more burden on the middle aged persons who are likely to save more.
This lifetime income tax scheme will be highly beneficial for the young people who want to spend more.
This will also be beneficial for those who are struggling with financial burdens like student loans and
high interest rate of the loans.
|
|
|
|
| |
|
|
| |
|
