Description: There is no question that Canadian governments are spending borrowed money at a prodigious rate during this pandemic in order to support citizens and keep the economy moving. In an opinion piece in the Toronto Star, Daniel Tsai, a former government advisor who now lectures at Ryerson, says that throwing on a new series of taxes to pay down the debt would not be the way to go. Tsai argues that there is a need for non-partisan government and business experts to develop strategies on how to proceed.
Date: October 9, 2020
1) What increased government spending have you noticed during the pandemic?
2) What stood out to you in reading this article?
3) One of the options for increased government revenues is in increasing sales taxes. Wiley’s Financial Accounting: Tools for Business Decision-Making, discusses how companies account for the collection of sales taxes (see Chapter 10). What are the journal entries to show the collection of sales tax at the time of sale and the later remittance of that tax to the government?