Ain’t nobody like taxes

Taxes, taxes

ain’t nobody likes taxes

Well you can tax my ma

And you can tax my pa

Pretty soon you gonna have it all

Taxes, taxes

ain’t nobody likes taxes

To what extent should Canadians support social

programs and taxation?

• What values underlie social programs in Canada and the United States?

• How do the economic platforms of political parties differ from one another?

• How is a political party’s philosophy reflected in its platforms?

• How does the underground economy impact the federal and provincial tax base and social programs?

Social Program: A

service that is

provided by

government to

reduce economic

inequalities and

promote the well-

being of citizens.

In groups of 4 you are going

to complete a placemat

worksheet.

In the middle write down:

“What social programs

should the government

provide?”

Then in your groups write

down the top 3 choices that

your group feels are the

most important.

Medical procedures are costly to the Canadian taxpayer. Should individuals or society pay for medical services?

Food Banks receive support from voluntary donations and from the government. They are one way to counter the effects of poverty.

Thousands of people are homeless in Canada. Governments in Canada and the U.S. provide support to people who cannot meet their basic needs.

Some senior citizens are retired or, for health or other reasons, are no longer able to earn income from jobs. Canada and the U.S have different positions on supporting seniors.

• After viewing the photos, what are some of the issues

that the photographs are communicating? What other

problems exist in society that these photos did not

address?

• Should the government use tax payer dollars to fund all

the programs you viewed? Why or why not?

• What values do the people who support these programs

hold? (Read the definition of the word values on page

270, before answering this question.)

• What warning does Tommy Douglas give to future

generations?

• What is the connection between profit and health care

that Tommy Douglas makes in this speech?

• If the government runs health care can we trust it to

have our best interests in mind?

1. What comment is the cartoonist making about paying

taxes?

2. From this cartoon what can you conclude about

taxpayers views about paying taxes?

3. Is the perspective in the cartoon biased?

4. How could the government lower taxes in Canada?

5. How would lowering taxes impact your quality of life?

Think of both the positive and negative impacts.

As a class read page 271 and

then discuss

Critical Thinking Challenge.

“How might decisions on

social programs

connect to the principles of

mixed and market

economies?”

Canada’s Founding Principle:

“Peace, order and good government.”

Value?

America’s Founding Principle:

“Life, liberty and the pursuit of happiness.”

Value?

1. Health insurance

2. Private health care

3. Public health care

4. Profit

Read cartoon Two Ways

to Pay on page 272. Be

prepared to discuss as a

class.

1. How are the two health care systems the same?

2. How are the two health care systems different?

3. Which scenario benefits citizens the most? Why?

4. Which do you prefer?

• Different levels of government provide and fund

social programs in Canada.

• Federal and Provincial governments have

different responsibilities outlined under Canada’s

Constitution.

• Provincial governments responsible for health

care

• Federal government responsible for “Peace,

order and good government.”

The Canadian Health Act is a federal law that sets out

5 principles for health care in Canada. The act says

that, in every province and territory, health care

must be:

• Publicly administered: run by government for no

profit.

• Comprehensive: for care provided by hospitals,

physicians and surgeons.

• Universal: available to everyone.

• Portable: available everywhere in Canada, no

matter where you make your home in Canada.

• Accessible: available within reason time and

distance.

• Under U.S. constitution, federal and state governments

can make laws regarding social programs.

• U.S. constitution does not identify particular federal or

state responsibilities.

• In groups of 2 read the

snapshot of social

programs of Canada and

the U.S. on pages 273 & 275.

• Complete Connect to

the Big Ideas questions 1,2

page 278.

Complete question #1

using a Venn diagram

Social Programs

Canada

Social Programs

U.S.

Read the articles on health care and complete the following

questions in groups of 2.

1. From whose viewpoint is the article written?

2. What does the person or group value in the article?

3. What is the issue/s that the article raises?

4. What are some of the biggest challenges of health

care that each article addresses?

Government collect taxes to

pay for social programs.

Both Federal and Provincial

governments collect taxes.

Canadians pay 2 kinds of

taxes to the government:

Income tax and sales tax.

Glossary

Add the following terms to

your glossary sheets

1. Goods and Services Tax (GST)

2. Income Tax

3. Median

4. Sales tax

5. Service tax

• "Direct taxes" are taxes are imposed on the income of Canadian resident individuals, Canadian corporations and various other entities that either reside or carry on business in Canada.

• ie. Income Tax

• "Indirect taxes" are generally consumption taxes levied on property and services. In Canada, the term "commodity taxes" is often used in place of indirect taxes.

• ie. GST

Individuals have

jobs and make $

Individuals pay

taxes

Income tax goes to the

Federal government

Federal government uses or

distributes the money to the

provinces to provide services that

benefit Canadians

Education

Income Assistance

Social Programs

• Look at the pie graphs on page 282.

• Pie graph #1 looks at Federal

Government spending in 2007.

• Pie graph #2 looks Alberta’s

government spending in 2007.

• What areas do you believe our federal government is

spending too much money on? Justify your answer.

• What area do you believe our government should

direct MORE of our tax money towards? Justify your

answer.

• In Canada we have a progressive tax system. In simple terms this means the more income you make the more tax you pay.

• 15% on the first $38,832 of taxable income, +

• 22% on the next $38,832 of taxable income (on the portion of taxable

income between $38,832 and $77,664), +

• 26% on the next $48,600 of taxable income (on the portion of taxable

income between $77,664 and $126,264), +

• 29% of taxable income over $126,264.

• In Alberta our provincial government has gone to a flat tax. In simple terms this means that all taxpayers pay the same percentage of their income.

• 10% of taxable income in 2009

When you combine all of the various direct and indirect taxes, from all three levels of government, Canadians pay some of the highest rates of tax in the world!

Income Level Progressive Tax Paid Flat Tax Tax paid

Tax Rate Rate

$20 000 15% $3,000 18% $3,600

$30 000 17% $5,100 18% $5,400

$40 000 19% $7,600 18% $7,200

$50 000 22% $11,000 18% $9,000

$60 000 25% $15,000 18% $10,800

$70 000 28% $19,600 18% $12,600

$80 000 32% $25,600 18% $14,400

$90 000 37% $33,300 18% $16,200

$100 000 41% $41,000 18% $18,000

• In all countries it is against the law to avoid paying taxes.

• The economic activity that governments tax is called the Tax Base.

• Tax Evasion involves not reporting your economic activity.

• This is part of the underground economy which is also called the “Black Market”. This is illegal and takes away from the governments tax base and therefore its ability to provide social programs for Canadians

Viewing

Watch the following video on the negative impact that working in the black market

has on the tax base.

http://www.youtube.com/watch?v=Tba1zoJ5sOI&NR=1

The Tax Rap Video show why it is important to pay taxes

http://www.youtube.com/watch?v=7QdCf56CYh4&feature=related

Make a one minute PSA about the dangers of the Underground Economy

List the dangers of participating in the black market

• Read the top of page 287 as a class and the examine

the chart to find examples of Party Platforms of the

Federal parties of Canada.

Stephen Harper Michael Ignatieff Gilles Duceppe Jack Layton Elizabeth May

Conservative Liberal Bloc Quebecois NDP Green

The above are the leaders of the 5 main political parties in Canada’s Federal

Government… What are the political platforms of each party? What are their

views on social programs and taxation? LETS FIND OUT…

Economic policies come from values and form part of the

platform of political parties. The policies within platforms

indicate where parties fit on the economic continuum.

Look at the chart and Economic Continuum on page 288 as a

class. Discuss the values of each political party

Planned economy Mixed Economy Market Economy

Political Party A Political Party B Political Party C

More government involvement Less government involvement

Read pages 289-290 that examine the major political parties in Canada and

the U.S. After reading each party’s platforms place them on the Economic

Continuum. Do one for Canada and another one for the U.S. Then answer

the questions 1 & 2 at the bottom of this slide.

Political Parties

More government involvement Less government involvement

1. Which political party in Canada closest resembles the Republican party of the

U.S?

2. Which political party in Canada closest resembles the Democratic party of the

U.S?

3. Does Canada have too many major political parties?

4. Is there lack of political choice in the U.S.?

CRITERIA FOR JUDGEMENT

Establish criteria for making your decisions.

What are your criteria for determining areas to cut?

What are your criteria for determining areas not to cut?

*What areas are absolute untouchables? There is no

way you would cut!!!

TASK ONE: Beside each area, place a “P” beside it if it is an area the provincial government is mostly responsible for, and an “F” if it is an area the Federal government is mostly responsible for.

TASK TWO: Define the following: Debt: Deficit:

TASK THREE: As a GROUP, complete this NEW budget for both the federal and provincial budgets. If the budgeted amount goes: UP - write the new amount in RED DOWN - write the new amount in BLACK STAYS THE SAME - write the amount in BLUE