Income Tax and Inequality: What Constitutes Welfare State Expenditure?

Authors

Gordon W. Ternowetsky, University of Regina

Abstract

This paper examines 1981 taxation returns for the Province of Saskatchewan and Canada as a whole. The analysis examined the extent to which legal tax breaks benefit the rich and act to reinforce income inequality. The question of what constitutes government social spending is also raised. It is argued that tax breaks are a form of social expenditure that result in a tremendous drain on government revenue. The findings show that if progressive taxation was enforced, even for the few very rich Canadians (those earning over $200,000 a year), governments in 1981 would have an extra 1.1 billion dollars available for other social programs.

Recommended Citation

Ternowetsky, Gordon W. (1986) "Income Tax and Inequality: What Constitutes Welfare State Expenditure?," The Journal of Sociology & Social Welfare: Vol. 13: Iss. 2, Article 4.
DOI: https://doi.org/10.15453/0191-5096.1748
Available at: https://scholarworks.wmich.edu/jssw/vol13/iss2/4