R (Tax Revenue) / PT Tax Base Volume of Transactions = Revenue Neutrality APT %Tax
R (295,453.0) / PT (3,506,841.5) x 100 = 8.452%
Let's say we round the APT tax rate to 8.5%, then each side of the listed transactions would pay 4.25% on each transaction. If we could gather and input more "PT" data to the model then the APT tax rate would drop even more. Please contribute your knowledge if you can.
Using R/PT=8.5% and if your household income was $100,000 per year and you spent $75,000 on expenses, your total annual tax would be:
Income $100,000 x 4.25% = $4,250
Expense $75,000 x 4.25% = $3,187.50
Total Tax paid = $7,437.50 or 7.44% of your $100,000/yr income.
Net savings at end of year would be $25,000 (unspent income) less $7,437.50 (tax) = $17,562.50 (net savings)
We are going to have to endure more blather from politicians about tax crediting and tax targeting (carrot and stick) in the upcoming municipal, provincial and federal election cycles but if the past is any indication, all we will see is more favoritism towards political party constituents.
I'm pretty sure there are people out there who can add to my modest attempt at illustrating that Edgar Feige's APT model would work in Canada. Please join in this attempt. Review the thesis.