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INCOMETAX - The income tax was first imposed in Canada in 1917 on both individuals and corporations, collected primarily by the Federal Government originally meant to finance Canada's involvement in World War I set at a rate of 4%.

INCOME TAX collection agreements enable both the federal and provincial governments to levy income taxes through a single administration and collection agency, called the Canada Revenue Agency.

The federal government collects personal income taxes on behalf of all provinces except Quebec and collects corporate income taxes on behalf of all provinces except Alberta and Quebec. Canada has a graduated tax system, whereby the percentage over the "more than" amount goes up....graduated from 15.25 - 29% (2006).

These rates, together with provincial income tax rates, federal and provincial surtaxes, and provincial health premium taxes (both also calculated based on income), serve to create a combined top marginal tax rate that can approach 50% in some provinces. L'Agence du revenu du Canada - ccra.gc.ca

Critics of income tax systems have argued that they can be extremely complex, requiring detailed record-keeping, lengthy instructions, and complicated schedules, worksheets, and forms. Critics further claim that income tax systems can penalize work, discourage saving and investment, and hinder the competitiveness of business.

Income taxes are not border-adjustable; meaning the tax component embedded into products via taxes imposed on companies cannot be removed when exported to a foreign country (see Effect of taxes and subsidies on price).

Income Taxation systems such as a national sales tax or value added tax remove the tax component when goods are exported and apply the tax component on imports.

The principles of an income tax are also argued by critics. Frank Chodorov wrote "... you come up with the fact that it gives the government a prior lien on all the property produced by its subjects." The government "unashamedly proclaims the doctrine of collectivized wealth. ... That which it does not take is a concession."