Taxpayers federation urges Ottawa to reduce tax brackets, personal income tax - Yahoo! Canada News

good idea -and would generate real savings by getting rid of the administrative burden of collections groups-PR

Taxpayers federation urges Ottawa to reduce tax brackets, personal income tax - Yahoo! Canada News: "Taxpayers federation urges Ottawa to reduce tax brackets, personal income tax

By Steve Rennie, The Canadian Press

OTTAWA - The Canadian Taxpayers Federation wants Ottawa to lower personal income taxes and cut the number of tax brackets in half as the first step toward a single tax rate.
In a study released Thursday, the federation recommends the federal government move to two income tax rates of 15 per cent and 25 per cent by 2012, down from the current four brackets.
The federation suggests Canadians earning between $15,000 and $80,000 be taxed at a rate of 15 per cent, while those earning more than $80,000 be taxed at 25 per cent.
The group says the eventual goal should be a single tax rate.
'We actually began this process trying to actually achieve a single tax rate for all Canadians. We concluded, though, it just wasn't do-able,' said John Williamson, the group's federal director.
'What we're trying to do is put forward policy here that a political party that was interested in promoting lower taxes could adopt in the immediate term.'
Doing so, the federation says, would remove about 1.4 million low-income Canadians from the tax rolls since their income wouldn't be high enough to tax.
The group says its plan would result in a $25-billion cut to personal income taxes by 2012.
However, Prime Minister Stephen Harper and Finance Minister Jim Flaherty have cautioned against expectations of any major new tax cuts or spending programs in this year's budget because of the expected slowdown in the Canadian economy"