Out of sight, out of mind: What was the Occupy thing about again?
The Occupy protests are being ended all
over the country. Beginning with the eviction
here in Victoria Park, the un-occupy movement
has spread across the country to encompass
Toronto and Vancouver. While it's
unclear whether there will be backlash from
the protestors once they aren't able to congregate,
it's difficult to speculate on where
all of this pent-up anger will go.
A common goal of all these protests is to reduce the wage gap between Canadians, specifically the rich and the poor. The problem with this is that the individuals making enormous amounts of money are already paying their fair share. In Ontario, incomes over $128,800 are already taxed around 40 per cent. Regardless of how much income a person has, there is a serious lack of motivation to do well when an increasing amount of your profits are taken.
The reason why we can't raise taxes on the wealthy is displayed prominently in countries like Denmark. The wealthy in Denmark are taxed at 69 per cent on their income, making them one of the highest-taxing countries in the world. The result of this has been a widescale abandon ship call by skilled professionals. When a country has high tax rates for the wealthy, the wealthy will leave and spend their money somewhere else. The fallout from raising taxes on the wealthy would be astronomical. The first outcome if this levy were to be applied in Ontario would be a shift in population to the West. In Alberta, the provincial income tax is a flat 10 per cent, regardless of whether you make $50,000 per year or $500,000 per year. This has contributed heavily to the deficit of over $5 billion for the 2010/11 Alberta provincial budget.
Raising taxes on the wealthy isn't the solution to the wage gap. The notion that there is a 'solution' is patently naïve; in the face of a global recession, everybody's paycheque takes a huge hit. In the case of the wealthy, money is almost immaterial. They're concerned with security, protecting the companies they're building, and making sure their families are provided for. Owning a multimillion dollar company not only provides a person with the ability to earn millions of dollars but also introduces the risk of losing millions of dollars. One poor business decision can undo years of hard work and jeopardize the company's future permanently. Money is the reward for taking huge risks and having them pan out.
It's easy to say 'take risks' when the reality is that to take risks a person needs to have either money or skills to take risks with. Conversely, just handing people money to use as they see fit certainly isn't the answer either. The key to closing the wage gap isn't to give away money nor is it to raise taxes; the key is to get as many people above the poverty line as possible. All people need is the opportunity to succeed, they don't need success handed to them.
Editorial opinions or comments expressed in this online edition of Interrobang newspaper reflect the views of the writer and are not those of the Interrobang or the Fanshawe Student Union. The Interrobang is published weekly by the Fanshawe Student Union at 1001 Fanshawe College Blvd., P.O. Box 7005, London, Ontario, N5Y 5R6 and distributed through the Fanshawe College community. Letters to the editor are welcome. All letters are subject to editing and should be emailed. All letters must be accompanied by contact information. Letters can also be submitted online by clicking here.
A common goal of all these protests is to reduce the wage gap between Canadians, specifically the rich and the poor. The problem with this is that the individuals making enormous amounts of money are already paying their fair share. In Ontario, incomes over $128,800 are already taxed around 40 per cent. Regardless of how much income a person has, there is a serious lack of motivation to do well when an increasing amount of your profits are taken.
The reason why we can't raise taxes on the wealthy is displayed prominently in countries like Denmark. The wealthy in Denmark are taxed at 69 per cent on their income, making them one of the highest-taxing countries in the world. The result of this has been a widescale abandon ship call by skilled professionals. When a country has high tax rates for the wealthy, the wealthy will leave and spend their money somewhere else. The fallout from raising taxes on the wealthy would be astronomical. The first outcome if this levy were to be applied in Ontario would be a shift in population to the West. In Alberta, the provincial income tax is a flat 10 per cent, regardless of whether you make $50,000 per year or $500,000 per year. This has contributed heavily to the deficit of over $5 billion for the 2010/11 Alberta provincial budget.
Raising taxes on the wealthy isn't the solution to the wage gap. The notion that there is a 'solution' is patently naïve; in the face of a global recession, everybody's paycheque takes a huge hit. In the case of the wealthy, money is almost immaterial. They're concerned with security, protecting the companies they're building, and making sure their families are provided for. Owning a multimillion dollar company not only provides a person with the ability to earn millions of dollars but also introduces the risk of losing millions of dollars. One poor business decision can undo years of hard work and jeopardize the company's future permanently. Money is the reward for taking huge risks and having them pan out.
It's easy to say 'take risks' when the reality is that to take risks a person needs to have either money or skills to take risks with. Conversely, just handing people money to use as they see fit certainly isn't the answer either. The key to closing the wage gap isn't to give away money nor is it to raise taxes; the key is to get as many people above the poverty line as possible. All people need is the opportunity to succeed, they don't need success handed to them.
Editorial opinions or comments expressed in this online edition of Interrobang newspaper reflect the views of the writer and are not those of the Interrobang or the Fanshawe Student Union. The Interrobang is published weekly by the Fanshawe Student Union at 1001 Fanshawe College Blvd., P.O. Box 7005, London, Ontario, N5Y 5R6 and distributed through the Fanshawe College community. Letters to the editor are welcome. All letters are subject to editing and should be emailed. All letters must be accompanied by contact information. Letters can also be submitted online by clicking here.
