Tax Liability

The paper should address the issue of a separate tax system for Ontario.  As you have learned, Ontario assesses tax by having taxpayers fill out a separate form calculating the tax.  In the past, Ontario simply determined its tax by taking a straight percentage of the federal tax, a system still used by some provinces (this approach is sometimes called a “tax-on-tax” or TOT system).  A number of years ago (about 20), Ontario went to a separate calculation, but still uses the federal definition of taxable income (this is called a “tax-on-income” or TOI system).  In contrast, Quebec has taxpayers fill out an entirely separate tax return, defining taxable income differently than the federal government does (the Quebec system has been in effect far longer than Ontario’s).  Some people think that Ontario should follow Quebec’s lead, and move to a separate tax return; other people believe that Ontario has already gone too far, and that the complications in doing separate calculations impose a needless cost on taxpayers.Your paper should begin by detailing some of the ways in which Ontario’s calculation of tax liability differs from that used by the federal government.  Look at three different taxpayers in three different income categories: a low-income taxpayer with income of $30,000; a middle-income taxpayer with income of $80,000; and a high-income taxpayer with income of $300,000.  Keep the calculations relatively simple by ignoring all deductions and credits except the basic personal amount.  That is, ignore any C.P.P. or E.I. contributions and all Ontario property and sales tax credits, as well as the Ontario tax reduction.  Compute the average and marginal tax rates for each taxpayer first for the federal system alone, and then for the provincial system alone.  In practical terms, does it matter very much (that is, would the net results for the three taxpayers be much different if Ontario simply used a TOT system rather than a TOI system)?  Is the Ontario system more or less progressive than the federal system (note that it is quite hard to compare progressivity between tax systems, so you may only be able to make some general statements here)?  In what other ways does the Ontario system differ from the federal system?  What are the advantages and disadvantages of having a separate tax calculation (as opposed to a TOT system)?You should then go back and try to determine why Ontario made this change.  This will be hard (I did not turn up much in a casual search), so it is OK to speculate on why this happened.  Do you think it was a good idea or a bad idea?  Explain your reasoning.Finally, why does Quebec go even further than Ontario in breaking its system away from the federal system?  Should Ontario move closer to the Quebec model (explain why or why not)?  Interestingly, in the area of consumption taxes, Quebec and Ontario for a long time went in opposite directions.  That is, Quebec harmonized its provincial sales tax with the G.S.T. very early on, while Ontario had a separately defined sales tax base until very recently.  Comment on this apparent paradox ? that is, on the fact that Quebec has chosen to have a less harmonized income tax, but was very quick to adopt a more harmonized sales tax.

Struggling to find relevant content? Order a custom essay on
Tax Liability
Let our experts save you the hassle
Order Now
Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
Sign up, place your order, and leave the rest to our professional paper writers in less than 2 minutes.
step 1
Upload assignment instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Get personalized services with GPA Fix
One writer for all your papers
You can select one writer for all your papers. This option enhances the consistency in the quality of your assignments. Select your preferred writer from the list of writers who have handledf your previous assignments
Same paper from different writers
Are you ordering the same assignment for a friend? You can get the same paper from different writers. The goal is to produce 100% unique and original papers
Copy of sources used
Our homework writers will provide you with copies of sources used on your request. Just add the option when plaing your order
What our partners say about us
We appreciate every review and are always looking for ways to grow. See what other students think about our do my paper service.
Social Work and Human Services
Awesome Work!
Customer 452587, October 20th, 2021
Customer 452813, July 18th, 2022
Customer 452813, June 19th, 2022
Business and administrative studies
Customer 452701, August 16th, 2022
Great writing! Really appreciate your help!
Customer 452503, April 22nd, 2021
Everything was done thoroughly and with care. Awesome job!!!
Customer 452453, April 10th, 2021
thank you so much for the help, I really appreciate that.
Customer 452725, February 13th, 2022
Thank you!
Customer 452707, April 3rd, 2022
Social Work and Human Services
Thank You, Don!!! :)
Customer 452587, November 9th, 2021
Customer 452813, June 25th, 2022
Customer 452813, June 26th, 2022
Web programming
Customer 452715, September 16th, 2022
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat
error: Content is protected !!