A Solution for Cash-Strapped Families: Less Taxes

On one hand, we are so much more. We are individuals, entrepreneurs, creatives, professionals—and reducing us to “taxpayers” removes much of our humanity.

On the other hand, we should own it. Up to 80 percent of the Canadian population is middle class; we are the foundation of the Canadian economy. We are the financiers of the CBC, social support systems, politicians’ and government workers’ salaries—of libraries, roads, schools and our health care system (which some say is wonderful and others say is long overdue for a serious reckoning).

Therefore, as taxpayers, it’s important for us to hold governments and politicians accountable for the management—er, mismanagement?—of the colossal amount of money we in the middle class contribute to their personal and political whims.

Meanwhile, we are stressed. As our financial survey on page 95 illustrates, financial uncertainty causes mental health issues, which lead to physical health issues. Nearly six percent of us are worried about losing our homes. Even two incomes per family do not result in a household surplus. Our cash crunch means less money left over to support our local businesses, the arts, and initiatives that make our country vibrant—and less money flowing in this direction often results in the government stepping in to hand out grants and ultimately be the decider of which businesses thrive and which don’t.*

Here’s a solution: less taxes. An average Canadian household has an income of $106,000 and pays more than a whopping $48,000 in combined taxes every year, according to the Fraser Institute. Taxes are everywhere: income tax, property tax, carbon tax (set to increase, which will also make everything else cost more), HST, capital gains tax—the list goes on. You need an accountant to figure out the complexities. It’s absurd. Imagine some of that money back in your pocket, allowing you to support the arts, restaurants and charities—or (for some) put food on your table without going into debt.

It’s time for reduced taxes, and less reckless government spending overall. Government could surely afford to receive less of our money if they spent it more carefully (the CBC alone costs you and I more than $1.2 billion annually).

We hope you are enlightened—if not alarmed—by our financial survey. It is one of a series of surveys we’ve been running. Stay tuned for more. They are the brainchild of Moses Znaimer, our executive producer, who himself is a lifelong creative and living proof of the amazing things entrepreneurial Canadians can accomplish—in spite of taxes and government meddling.

Enjoy this issue.

David Loopstra
Publisher, On The Bay
dloopstra@onthebaymagazine.com

 

*On The Bay receives the Special Measures for Journalism grant from the federal government. Grants exist; we’d be at a competitive disadvantage if we didn’t apply. Philosophically, we’d prefer no grants, but less tax. Do you agree? Disagree? Write us a letter at readermail@onthebaymagazine.com!