Is State Financial Assistance to the Education Sector in Canada Justified by Raising the Tax Rate - Term Paper Example

The paper "Is State Financial Assistance to the Education Sector in Canada Justified by Raising the Tax Rate" is a perfect example of an essay on finance and accounting. Canada is among the s that constitute G8, hence implying it possess a stable economy in general. Its main revenue emanates from the service industry that provides employment to approximately 75% of its citizens. Besides, the state has a considerable manufacturing sector that constitutes automobile and aircraft making (Goldberg).

These coupled with more revenue sources like minerals, farming, and international trade enables it to have an unwavering base despite the past economic, global meltdown that shook numerous states. Canada is a conservative that is famous for having tax rates being within the reach of its citizens. Currently, there is a squabble regarding the rise of the taxes, which some individuals and organizations are advocating (Chamberlain & Hesam 120). Contrary, Jim Flaherty, according to his argument, does not support the idea and states clearly that the budget forthcoming this month will not feature any “Hikes”.

  Additionally, Canada encounters heightened tuition mainly in the high education programs or courses, for instance, law (Chamberlain & Hesam 120). This is much evident from assorted provinces like Alberta, where tuition is at substantial heights besides their expensive learning materials and other related expenses meant for students. Hence, this implying that first-years must part with a maximum of $12,000 (Goldberg). This postulates that at the end of one’s program in the university will have an accumulated loan approximating to $100,000.

Since tuition increment across in the state lacks uniformity, where at some provinces has notably decidedly hiked Ontario and Nova Scotia. This scenario yields to the emergence of two students’ categories, which encompass; those who can afford tuition and others emanating from the deprived background (Usher 47). The latter after their programs will have enormous debts meant for clearing. Therefore, currently funds via loans to the students will not be able to tackle the aspect of heightened fees effectively (Goldberg).

Applicable and effective resolution to this predicament is for the state to intervene with regulating policies meant to make all the programs’ institutions affordable. In addition, it will be an excellent idea if the decision has a back up of financial aid, which will ensure some services offered by these institutions get back up from the state’s financial docket. This is primarily in the provision of learning expensive materials and extra paraphernalia essential for the learning process.

This will only be possible via hiking taxes on some ventures to enable the state chip in with strong financial support. Taxes’ utilization will encompass adequate loans to the students and financing some services meant for programs, which contribute to the heightening of learning tuition. The action taken would prompt the state channel some financial aid to the education sector, besides hiking taxation (Chamberlain & Hesam 120). Taxation will proportionally impose on the ventures according to the income of each venture; hence, making education affordable.

This will not be pricey to the state since its role will be readjusting statistics and ensure effective channeling of the funds. The decision or action will save Canada from struggling to attain funds to service the education sector, which will simply not having sufficient finances for other ministries like construction. Conversely, the decision will not fail criticism especially from the Finance minister who is reluctant and against increment of taxes, which he anticipates is an eternal exertion (Usher 47).

This will eventually take some time prior to the state, and its constituting organs see the sense and yield to the idea.