EN FR

Workin' for the man

Author: Walter Robinson 2002/06/28
Finally, the holiday weekend has arrived and the weather is picture perfect. Are you celebrating yet? Are the burgers on the ‘que with the ale chillin' in the cooler? Not until Monday you say, but then it will be too late. While Canada Day is definitely a festive event, the party favours were disbursed around the Robinson household yesterday.

Why you may ask? Well, yesterday was national Tax Freedom Day (TFD). According to the Vancouver-based Fraser Institute, as of yesterday we were free from government taxation and started working for ourselves. For the past 25 years, the Fraser Institute has measured the collective tax burden paid by the average Canadian family to all orders of government - federal, provincial and municipal. If you're so inclined, you can calculate your own personal TFD, just surf by www.fraserinstitute.ca

This burden includes income taxes, capital gains taxes, sales taxes, gas taxes, tobacco taxes, alcohol taxes, property taxes, payroll taxes, license fees, health care premiums, import duties and a host of other fees and taxes collected by government.

Two years ago, national TFD occurred July 3rd. Last year we gained somewhat with TFD occurring on June 26th. But with the advent of the flying tax, higher GST revenues due to higher gas prices, higher overall payroll taxes and a few other tax hikes along with program spending increases at all three orders of government, TFD moved back two days to June 28th.

And as mentioned in my column on May 25th, taxpayers need to be wary of the manner in which governments are trying to pass off new taxes as something that is supposedly good for us. From flying levies so-called health premiums to tobacco levies, this green peas and alfalfa sprouts approach to raising more revenues is something we must all keep close tabs on or TFD will quickly slide back into July or further.

Of course my critics - lefties and leftover G8 activists come on down - will trot out former U.S. Supreme Court Justice Oliver Wendell Holmes quote of "taxes are the price we pay for a civilized society." Fair point.

Yet, our taxes continue to fund corporate welfare and regional development boondoggles to the tune of $4 billion a year at the federal level alone. And the auditor general (AG) continues to point out that some $13 billion of federal spending is discretionary and over $7.7 billion sits in unaccountable, semi-transparent - arm's length from government - foundations.

Funny thing those foundations and how they get their money. The hand of government is quick to pick our pockets and diminish our paycheques at source but this money is then placed beyond arm's reach and away from the scrutiny of the AG's parliament-mandated prying eyes.

Which brings us to the real driver of Canadian tax rage. In business it's called the value proposition. Canadians continue to pay more and get less as governments at all levels pander to special interest priorities as opposed to fulfilling the dream of our nation that strives to compete globally and create and ultimately retain its wealth to be put toward those pursuits that enlarge the virtuous circle of prosperity so we can compete, create and retain again and again and again.

Instead corporate handouts, sponsorship scandals, countless AG reports and scathing internal audits abound chronicling billions in waste and mismanagement. Meanwhile our Sea Kings are held together with bungee cords, our used medical equipment is refused by third world countries, health care waiting lists keep growing and seniors - especially many Canadian widows who grew up during WWII and devoted their lives to unpaid labour in the home - are provided with a $12,000 pittance in pension and income support even though many live in some of Canada's most expensive cities.

According to the Fraser Institute, the average family cash income in Canada is just under $71,000. A whopping 48.6% of this money is fed to the hungry, very hungry, tax collection monster. Some 57% ($19,490) of all taxes paid are chewed up by the feds, another 36% ($12,253) are ingested by the province and the remaining 7% ($2,361) make a nice appetizer for city hall.

Put another way, each Ottawa family worked 102 days, from January 1st until April 12th for Jean Chretien and his finance minister (whomever he/she is today). Then we toiled away for Mike Harris and Jim Flaherty on April 13th and 14th and continued our labours for Ernie Eves and Janet Ecker from the April 15th until June 15th. Finally, we hauled ourselves out of bed on the 16th of this month in something resembling a two-week contract to fill the Chiarelli et al bank account down at city hall until close of business Thursday.

So how do we compare vis-à-vis other nations? Our American neighbours celebrated Tax Freedom Day on April 27th and our British cousins across the pond in Tony Blair's new-socialist Britain started working for themselves over three weeks ago on June 5th.

The silver lining to be found in this cloud of taxation is that Ontario's Tax Freedom Day was June 27th and our compatriots in la belle province have to wait until next Wednesday before they escape the bonds of taxation. So happy belated Tax Freedom Day, now all the money you earn is yours to start paying your rent to the bank and your car payments to the finance company.

A Note for our Readers:

Is Canada Off Track?

Canada has problems. You see them at gas station. You see them at the grocery store. You see them on your taxes.

Is anyone listening to you to find out where you think Canada’s off track and what you think we could do to make things better?

You can tell us what you think by filling out the survey

Franco Terrazzano
Federal Director

Hey, it’s Franco.

Did you know that you can get the inside scoop right from my notebook each week? I’ll share hilarious and infuriating stories the media usually misses with you every week so you can hold politicians accountable.

You can sign up for our Action Update emails

Looks good!
Please enter your first name
Looks good!
Please enter your last name
Looks good!
Please enter a valid email address
Looks good!
Please enter a valid postal code. Ex. K1K1K1

We take data security and privacy seriously. Your information will be kept safe.