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Why Canadian Income Tax is complicated with Alex MacEachern and Paul Craig

Why Canadian Income Tax is complicated with Alex MacEachern and Paul Craig

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There's no government service that touches every citizen the way taxes do. Every April, millions of Canadians lose a weekend preparing their taxes, often with the help of paid software tools. Yet elsewhere in the world, there's no tax season—or you simply approve the pre-filled return the government sends you.

There are plenty of reasons why it is this way. Taxes are the easiest way for the government to turn policy into outcomes through credits and fees. The tax code is complex, and confederation means citizens file taxes with the province and the nation. And for many independent-minded Canadians, telling the government what you earn, rather than having it tell you, is a rebuke of tyranny. But the current tax system is also broken. It's not just expensive and time-consuming: The CBC estimates that because of a difficult filing system, between $1.3 and $1.6B of the most vulnerable Canadians don't claim the benefits to which they're entitled. And it's the one part of government where, if you're accused of breaking the law, you're presumed guilty and must pay to defend yourself.

The Federal government has tried to fix this on multiple occasions. It's even built free-to-file software tools. But none of them has seen the light of day. Since taxation is such a broad, ubiquitous topic, it's going to take more than one episode to understand the issues, so we started by inviting Alexandra MacEachern and Paul Craig to discuss their work trying to tackle these problems from within government.

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