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Taxation

Can We Pay Down the Deficit by Further Taxing the “Rich”?

Most industrialized countries have been grappling with large budget deficits since the start of the financial crisis in 2008. Among the solutions often put forward is increasing the tax burden of the "rich." In the United States, following an opinion piece written by billionaire Warren Buffett, President Barack Obama suggested to Congress that it should raise taxes on the rich. This is also the case in France, which just enacted a "temporary" surtax of 3% on incomes over 250,000 euros and of 4% on incomes over 500,000 euros.

The Financing and Transparency of Unions

Union organizations are private organizations, but their financing relies on an indirect power to tax known as the Rand formula. They also enjoy various tax breaks, like a tax credit for union dues, a tax exemption for strike pay as well as tax credits for contributions to labour-sponsored funds. Despite these quasi-public financing prerogatives, Quebec union organizations generally do not exhibit financial transparency and have very few obligations in this regard.

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