Waterloo Public Library Digital Collections

Waterloo Chronicle (Waterloo, On1868), 1 Nov 1995, p. 6

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<OPINOX Imagine that it is April 30, 1996. Yousuatyomldlchmtd)ktopnpmyoflr‘ixmomuxrtmm.m form is the size of a postcard. It asks for your name, address, Social Insurance Number and occupation. The following 15 lines ask for your income, your personal allowances, your dependents and any taxes already paid. You calculate your tax â€" 25 per cent of your income less allowances â€" enclose a cheque and mail. _ A decade or so ago, such talk of that kind ‘of dramatic and radical tax reform would have been considered fanciful, if not delusional. But today, it‘s starting to become part of reality. A flat tax. Its idea has arrived. And given the right circumstances, it may well happen some time in the future. m It is hard to imagine a reform coming from Ottawa that would be as concrete or as memorable to the average Canadian as a thoroughâ€"going restrucâ€" turing of the tax system. But many experts say, it is quite plausible â€" if lawmakers can divorce themselves from the many special interest groups that support the existing system and the special loopholes it contains for each of them Start with what‘s happening in the United States. Rep. Dick Armey of Texas, a very senior Republican on Capitol Hill, has put a proposal in front of the United States Congress that would call for the eliminaâ€" tion of the existing tax system to be replaced by a flat tax. Armey‘ flatâ€"tax proposal is a wonderfully streamlined, efficient and easy way to collect taxes. All of the deductions, depreciations and loopâ€" holes would be gone in a stroke. In Armeys proposal, everyone would contribute 17 per cent of earnings as taxes. Well, not quite everyone. Armey has built a significant advantage for the poor into the system. The personal allowance would be $13,100 for a single person, $17,000 for a single head of household and $26,200 for a married couple filing jointly. The typical family of four would be taxed only on income in excess of $36,800. That would remove millions of poor families from the tax rolls entirely. In 1948, thesaverage family of four paid two per cent of its income in taxes in the United States. Today, that same family of four pays 24 per cent. In Canada, that figure is higher. It amounts to six per cent in 1948 and 34 per cent in 1995. And what about the rich? Wouldn‘t this represent a tax cut for them? For many, it would. But it would also make it impossible for the rich to hide or shield income in any way. No more tax shelters. No more loopholes. Collection would be simplified and fraud much easâ€" ier to prove. The proposal would bring an end to withholding which is one of the most dishonest games the government plays, taking your money before you get a chance to see it. Rep. Armey thinks that it is only through withholding that government has grown to such obese proportions. The idea of a flat tax is revolutionary but judging from what‘s hapâ€" pening in the American congress, it deserves a fair hearing in Canada. Flat tax deserves a fair hearing Telephone _ 886â€"2830 Fax No. .. .. 886â€"9383 Waterloo Town Square 75 King St. South, Suite 201 Waterloo, Ontario N2J 1P2 Although legions of accountants and tax lawyers would object â€" because they make their living out of the complex system of taxes that we have now by figâ€" uring out all of the loopholes that would decrease taxes under the Income Tax Act â€" many other people would stand up and applaud. The idea is under serious consideraâ€" tion in the United States and if things go right, it may well be put in front of Canadians in the very near future Melodee Martinuk Pete Cudhea (Sports Editor) Deborah Crandall Tim Gardner Recognize this place? Most Canadians should. We‘re back to Square One. Albeit with a country intact. a â€" Thats about all Monday‘s voting decided. The wrangling will go on and on. As it has for decades. Its up to the federal politicians to make good on their deathbed promises, even though it won‘t be easy doing busiâ€" ness with Messrs. Bouchard and Parizeau. The fact is Canadians took to the streets and gave politicians a mandate to try and satisfy the 0NCI wouldâ€"be sovereigntists. I don‘t think it can be done but gosh, it was astonishing and exciting U‘ in the past week to see Canadians cranked up from sea to shining sea. L o Only once have 1 seen the same spirit and it Nashed only briefly. That was when Paul C S Henderson of Lucknow scored that goal ya" against the Russians. 2" The margin was a nailâ€"biter unless you j count only the informed voters. It‘s hard to believe it but late polls showed that 25 per cent of ‘Yes‘ voters expected to continue to send their MPs to Ottawa. The lack of awareness was even worse when it came to such things as economics, dollars and passports. For the next referendum the task of informing voters shouldâ€" n‘t be left to Bouchard and Parizeau, the twin hawkers of snake oil. Canada is back to square one Big losers? Not Bouchard and Parizeau. But probably Jean Chretien. He was badly advised at the outset, but campaigned gallantly to the end. You have to count as losers, too, Quebec‘s anglophones and allophones. Given the strain the vote result will put on Quebec‘s social fabric, they will have to live amid francophone bitterness. A winner? You have to think of Jean Charest who won a lot of respect across Canada. It should stand him in good stead when Canada next goes to the polls. Judgment Call: Heres more to my controversial exclusive on the O.J. Simpson jury‘s delay: the verdict was hard to read. It was written in crayon. j % Linda Howard Denise Tucker Millie Martin Tae Prains of AgRAHAM REVISITED Circulation Manager: | Waterloo Chronicle is published every Wednesday by '&-â€" The Fairway Group Subscription rates Circulation: 240 Holiday Inn Dr., Unit F $45 yearly in Canada. Sharon Walter = Cambridge, On. $90 yearly outside Canada. Becky Brien N3C 3X4 +GS1I. J-EY,FWI_ The views of our columnists are their own and do not necessarily repres‘"! Publisher: the views of the newspaper. _ aoeum, Circulation: Sharon Walter Becky Brien Jerry Fischer _ Rick Campbell President: Paul Winkler The Waterloo Chronicle is P‘__uh_‘ fi_m Fairway Group, E4 o Mhai old ‘â€":vâ€"â€"~ Et .d 1 ‘u' a oR 75 King St. S., Suite 201, Waterloo ON. N2J IP2 886â€"2830 yO ) ONCE OVER LIGHTHY Ifs and Butts: You can bet there‘ll be fussing aplenty before the tough new smoking rules drafted by Waterloo Region to cover restaurants, food courts and doughnut shops are implemented. Smokers can hope, but their cause is lost. Increasingly, they are unwelcome. Worst of all are the cigar smokers. True, Waterloo regional police have charged 73 people with defrauding the welfare system . of $838,843 during the first 10 months of the f year. Yup, $838,843. That isn‘t chopped liver And its particularly impressive, given that the welfare brass constantly chant that welfare _ fraud is insignificant. f 1 called the enforcement mechanism desul tory and that‘s exactly the word. Tonsider this there‘s a gap of about three years between the time the unit first learns of a possible fraud and the cour rules on the case. The semiâ€"eternity includes about 15 months for the unit t review a case because of the backlog, nine months for polict to investigate and another 12 months for the case to g¢ through the courts. Gosh.ifweslowtl\eptmjuumybu.zhcwclfm cheats will be chiselling on oldâ€"age pensions. e Road‘s Scholar: Maybe its because of all the fed provincial makeâ€"work projects, but the detour season lasted longer than in other years. For months, Kâ€"W streets have been a maze. Even 0n f days, they offer scant promise of getting from hither to And its true across Ontario, even in the towns and ham Be assured, no matter how tiny the community, yOU always find someone to give you the wrong directions. Besides, they‘re not too bright. They always bite a little bit off the cigar. How come they don‘t buy the right size to begin with? . Fraud Squad: I‘ve always figured Waterloo Region‘s detection of welfare cheats has been desultory and latest statistics tend to confirm Rx

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