Some well-respected economists argue vehemently that the Canadian government should replace the income tax with a _________.

Question

Quizplus · Accepted Answer

By replacing income tax with a consumption tax, the government could stimulate economic growth, reduce tax fraud and evasion, and make the tax system fairer for low-income earners. A consumption tax is applied only when a consumer buys goods or services, and is therefore considered more progressive than an income tax because people with lower incomes typically spend a smaller proportion of their income on consumption. Additionally, a consumption tax could incentivize savings and investments, which would ultimately benefit the economy as a whole.

Some Well-Respected Economists Argue Vehemently That the Canadian Government Should