Why Does Canadian Public Policy Discourage Saving

question 6

Multiple Choice

Why does Canadian public policy discourage saving?

• A) because, other things the same, taxes increase the return from savings
• B) because means-tested programs such as Old Age Security provide greater benefits to those who saved
• C) because some forms of capital income are taxed twice
• D) because capital gains are not taxed

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Definitions:

Economic Growth

The increase in the market value of the goods and services produced by an economy over time, typically measured as the percent rate of increase in real gross domestic product (GDP).

Baby Boomers

A demographic group defined by the significant increase in birth rates following World War II, typically considered born between 1946 and 1964.

Age Seniority

The system or practice of giving precedence, respect, or authority to individuals based on their age, often found in traditional societies.

South Korean

Pertaining to or originating from South Korea, a country in East Asia located on the southern half of the Korean Peninsula.