Making History

For the first time in Canadian history, more than half of the federal government’s revenue in 2014 will come from personal income taxes -- a vivid sign that Canada’s tax burden is slowly shifting away from corporations and onto consumers. 
Daniel Tencer, The Huffington Post Canada 

And that is not because people are getting richer than corporations (see previous).

This article quotes an analysis of the federal budget by Toby Sanger.
The Harper government has already cut overall federal taxes and other revenues to the lowest rate they’ve been in over 70 years. Total federal revenues as a share of the economy declined to 14% in 2012/13, with tax revenues down to 11.5%. The federal government’s revenues and taxes haven’t been this low as a share of the economy since 1940.

That’s before Canada had national public health insurance, the Canada Pension Plan or unemployment insurance. ...

While the federal government’s tax revenues have declined as a share of the economy, many Canadians might not feel any better off, or more lightly taxed. That’s because there’s been a major shift in where the federal government gets its money. ...
The federal government’s revenues have increasingly shifted towards personal income tax (PIT). For the first time ever, personal income taxes are projected to provide more than 50% of Ottawa’s revenues next year in 2014/15, and keep rising. That’s up from a 30% share fifty years ago and even lower shares before then.
What’s come down is the share of the federal government’s revenues paid by corporations as well as other taxes and duties. These include estate taxes, excise taxes and custom duties. Despite record profits, corporations provide just 13.6% of the federal government’s revenues in corporate income taxes. That’s a third less than the over 20% share they provided during the “Golden Age of Capitalism” from 1946 to 1970.
Toby Sanger, The Progressive Economics Forum

This makes think about this 2006 article about spending cuts by Ellen Russel where she explains why the Harper government was making spending cuts in a time of a huge surplus.
The federal government may look rich today. But that $13.2 billion surplus announced recently relates to the last fiscal year — 2005/06. It was generated mostly when the Liberals were in government. Since Prime Minister Stephen Harper took power, he has been rapidly emptying the treasury.

How is Harper burning through a mountain of surplus cash? Tax cuts. ...

These tax cuts will deplete surpluses for years to come. ...

Paying for Harper's agenda will virtually empty the treasury this year — and for some years to come.
Why the Conservatives are cutting spending now,
Ellen Russel, Centre for Policy Alternatives

Toby's analyis might clear up some of the myths about income inequality and the mystery of the missing $10 billion.

Granfalloon notice: Toby Sanger and I went to the same high school at the same time.

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