Provincial Tax

[vc_row][vc_column width=”1/1″][vc_column_text]Most of us understand that we reap some social benefits from paying taxes. As such, when we pay our taxes part of the money, as stated in the section on Federal taxation, goes towards the support of the Canadian Provincial Governments. Consequently, when paying the annual taxes here in Hamilton these funds go to the Ontario Provincial Government offices. The Federal Government is the central collection agency who we actually pay our taxes too who then distributes a percentage back to the province. This is how the tax system works.

As it stands the taxes, we pay to the Federal Government for the support of the certain services the Provincial branches also contribute to these same programs. Additionally, each Province has their own obligations in support of their own infrastructures.

Herein is where issues can arise. While we understand that, each Province varies in size by land, population, and economic structure we find that there is an unbalance between the amount revenue generated from each Province. The fix, so to speak, was to support an equalization process where the Provincial Governments would add contribute part of their funds in support of the Provinces that are unable to meet a certain level of revenue generated through taxation.

When most of us living in Ottawa think about our tax responsibilities, our minds are set on our income tax alone. This happens mainly because of what we see when we look at our earnings each week. Additionally, it helps to remember that we all pay tax on the goods and services we use as part of our daily life, such as groceries, property, (clothes and vehicles), and entertainment.

Here then is the reason for understanding where our tax dollars go along with their allocation, and distribution channels. This includes all levels of government, the Federal, Provincial, and city branches. Specifically, here in Hamilton the city council is the body responsible for budgeting, how to allocate their funds, our tax dollars, among the many programs they support. Surely, there are times when you may ask yourself, “Where are my tax dollars going?” And “How am I benefiting?”

One direct answer is, look at the Police service in Hamilton. Their pay comes from the taxes we pay and are a larger part of the city budget. Nonetheless, there are understandably other programs supported through the taxes we all pay. However, the Provincial taxes we pay targets the capital budget for the most part.

The never ending contention between the Provincial and City Governments is that the distribution is not as balanced as some feel, in other words, some feel that they do not receive enough or a fair share. The subsequent outlook from the taxpayer is that we pay too much tax for not enough benefits or there are too many unnecessary taxes.

At the end of it all there is no getting around the fact that we must all support our way of life through the support of our Government by paying taxes. However, by utilizing the services of a professional accountant in Ottawa you can diminish the amount you actually pay through tax breaks and deductions.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width=”1/1″][vc_separator color=”grey” align=”align_center”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]

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