[vanekjar]

> mother and children live in Canada while the father works in HK.The family doesn't declare the foreign income in Canada.

Why would the father pay taxes in Canada when he lives and works in HK (or anywhere else) and (likely) is not a Canadian tax resident? It doesn't make any sense.

After all they pay local taxes in Canada while spending (GST, PST, property tax etc.)

[iguy]

Count this as evidence for consumption tax being fairer than income tax.

Earning money and sitting on it doesn't hurt anyone. But in buying a nice life in Canada, you are in part buying what the government provides.

[divbzero]

Agreed, there’s something to be said for GST or property taxes that are paid by all regardless of citizenship or legal residence.

[divbzero]

Yeah it’s confusing.

At first, I was also going to post about how Canada uses a residential income tax system: even if you’re a citizen, you don’t pay income tax if you live and work overseas. But it turns out where your spouse lives is relevant for determining residency. [1]

Regardless of whether the “astronaut” dads are evading taxes, the bigger question is about designing a tax system that’s both fair and easy to enforce.

[1]: https://www.canada.ca/en/revenue-agency/services/tax/interna...

[koheripbal]

Income tax is by far the largest and most progressive tax.

Sales taxes are small and regressive.

It's a monster difference.

[soheyl]

Fixed rate sales tax is regressive. A loaf of bread, a car, and a yacht should not be taxed at the same rate, and not only because of the demographic of the buyers, but also because of the introduced externalities.

Variable rate sales tax on the other hand is more progressive than any income tax.

[vanekjar]

How is the sales tax regressive when there is a fixed percentage?

Like the more I spent the less I pay in sales tax? I don't think so.

[raydev]

It is regressive when you consider the position of the buyer. People need to buy large items, and low income people are disproportionately hurt by taxes on those items.

[vanekjar]

That doesn't mean it's regressive. It's just a demagogy.

Low income people buy less things and pay lower sales tax proportionally. Wealthy people spend more on luxurious goods and pay way higher tax in absolute numbers. Everyone is hurt the same.

On top of that, necessities (food, medication, books) are usually exempt from the sales tax.

[iguy]

The logic of calling a flat sales tax regressive is (I think) that poor people spend most of their income, while rich people save more, and thus pay a lower percentage of their income.

Agree that this isn't a great way to look at things. And that (as you say) there are often different rates of sales tax on potatoes vs yachts.