CITC15H3 Lecture Notes - Lecture 4: Unearned Income, Income Tax, Regressive Tax
Document Summary
Demographic change as a budget driver: defined contribution pension portion of a paycheck that goes towards pension, dependency ration ration of non working dependents to working age people (ex. taxpayers, local governments offer people benefits and when they retire they have to pay them back, the results: pension politics, government pension obligation are growing. Raise retirement age: good news: ontario has pooled municipal pensions (omers) and the system is well funded (for now, most city of toronto employees receive omers pensions, some canadian cities are in trouble (montreal, st. john, tax base, rate, and yield, tax base: the value of the asset or income stream subject to taxation. Tax yield= tax base x tax rate: example: a purchase subject to hst (. 30 =10 x 13%, equity, how should taxes be levied, the benefit principle: people are taxed in proportion to benefits received or amount or amount consumed.
