Microeconomics,, 16th Canadian Edition

Table 18-1 Total Revenues of Canadian Governments, 2017 18.1 Taxation in Canada Governments at all levels in Canada—federal, pro ...

Canadian governments (at all levels) collect over $844 billion from various sources, representing over 39 percent of GDP. These ...

which collect about 27 and 33 percent of GDP in government revenues, respectively. Progressive Taxes Before discussing details a ...

The progressivity of a tax involves an important distinction between the average tax rate and the marginal tax rate. The average ...

The Canadian Tax System Taxes are collected by the federal government, by each of the provinces and territories, and by thousand ...

$205 843 and over: marginal tax percent To see how to compute the amount of taxes payable with this set of tax brackets, we cons ...

The five federal personal income-tax rates do not represent the complete taxation of personal income in Canada because the provi ...

Some corporate after-tax profits get distributed as dividends to shareholders. These dividends represent the shareholder’s share ...

As we saw in Chapter 7 , there are two different measures of a firm’s profit—accounting profit and economic profit. Accounting p ...

CHI faces a 30 percent corporate tax that applies to its economic profits of $400 000, it will pay $120 000 in corporate taxes, ...

will pay $450 000 in corporate taxes. CHI’s after-tax accounting profits will now be $1.05 million. But the presence of the corp ...

A large body of economic research suggests that the biggest burden of a corporate income tax applied to accounting profits is on ...

Taxes on Expenditure As we first saw in Chapter 4 , an excise tax is a tax levied on a particular good or service. In many count ...

Figure 18-1 The Operation of a GST of 5% With the notable exception of the United States, most developed economies levy a tax si ...

steel maker, the steel then sold to an appliance manufacturer, and the washing machine sold to a retailer and then to a consumer ...

Taxing the value of existing property creates two problems. First, someone has to assess the current market value of the propert ...

18.2 Evaluating the Tax System We have described several individual taxes in Canada, and in each case noted the tax’s possible e ...

The Ability-to-Pay Principle Most people view an equitable tax system as being based on people’s ability to pay taxes. In consid ...

perspective, the ideal taxes are user fees, such as those that would be charged if private firms provided the government service ...

System? Assessing how the entire tax system affects the distribution of income is complicated by two factors. First, the progres ...