- If someone does earn a huge amount of money they pay a good chunk in taxes that can provide better services for all or directly help support those most in need. We could build more affordable housing for those who can’t afford million dollar condos. We could increase pensions for seniors struggling after a lifetime of contributing to BC and Canada. We could help those who are unfortunate enough to be struggling with mental health issues or other challenges.
- With higher tax rates there is less reason to demand exorbitant compensation since a large part of it will just be taxed away. It is no coincidence that since right-wing governments started dismantling our progressive income tax system executive salaries have sky-rocketed. The share of income going to the top 1 percent fell after World War II when top tax rates were high.
After the 1970’s when these rates began to fall this trend has been reversed and the share of the very top is back up to where it was in the 1920’s and 1930’s. Just look at Robert Milton, president of Air Canada. In 2009 he got $14.7 million, almost double what he received the year before. When was the last time you had a 100 percent pay raise? And you’ve probably never lost anyone’s luggage.
If you want to know more about how greater income equality creates a better society for everyone – including the better off – click here.
At the same time taxes like the old PST do accomplish at least one important thing. They make sure companies who do business and make profits in BC, but are headquartered in another province or another country make some contribution to BC – and help pay for the public services and infrastructure they depend on to be profitable.