"Tax Freedom Day" is a Bunch of Nonsense
May 29, 2009
It’s almost that time of year again where the Fraser Institute trots out it’s well-worn “Tax Freedom Day.” This is an annual event they use to highlight the fact that Canadians pay too much in taxes (in their opinion). Tax Freedom Day marks the moment when Canadians have collectively “paid off the total tax bill imposed on them by government and can finally start working for themselves.”
The Institute employs a rhetorical strategy designed, best outlined by Macleans magazine’s Andrew Potter “to make taxation seem like something fundamentally alien, at odds with the interests of the average person. The underlying message is not that some taxes may be too high, or that the share of taxation may be unevenly distributed. Instead, it is that all taxes are essentially confiscatory, an unfair and probably illegitimate transfer of income to the state from its rightful owner, the private citizen.”
This is all a load of crap, of course. The hidden and underlying premise here is that the private sector is the producer of wealth, and that the public one is nothing more than the consumer of it. What business produces, governments take away.
The fundamental problem with this perspective is that it is people who produce and consume wealth, not business or government. The market is a device for providing us with private goods (like golf clubs and lawn mowers), while the state provides us with public goods (ike national defence and social programs).
Organizations like the Fraser Institute and others of their ilk want us to believe that Canadians do not receive a single good from the money they pay in taxes. And I bet the vast majority of us that read and hear the Tax Freedom Day propaganda pause and think that maybe we do indeed spend a lot of our time working to pay taxes. But how often do we stop and think about all of the services we receive for the money we pay? Very rarely, I would bet.
So when Tax Freedom Day is up on us, take a minute or two to focus not on how long you had to work before the money you earn became “your own,” but rather think of all the things we get that enhance our quality of life for the very reasonable level of taxes we pay.
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Well Jim, I also work 80 hour weeks and so do most of my co-workers. But I don't earn anywhere near $100,000 a year and I'm not bitter that about 40% of my paycheque goes to the taxman. I also don't think I'm in the minority. Most Canadians work hard, pay taxes and aren't looking for handouts. Perhaps its because I'm a public servant myself, but I see the value in public services and am willing to pay so they can be maintained. I applaud you for turning your life around but remember many who are trying to do the same rely on addictions programs, soup kitchens and shelters. Without government funding most of these programs would not exist. In a perfect world we wouldn't need these programs, but it's not, and helping others is part of what makes this such a great country to live.
Jerry - -0001-11-30 00:00
Well Jerry, I work 80-100 hour weeks , much more than the average person, so I earn every penny. I work over twice as many hours as the average person, so I SHOULD be able to live twice as good ! As a former homeless, addict, I WORKED HARD and turned my life around...I should be able to enjoy it, give money to charity when I want to help someone. I should not have my money taken from me. If I took half your income from you, it would be theft, but the government does it , all of a sudden it is OK. I have never been to BRAZIL so I can not speak for that, but EVERYONE in this country has opportunity. Ever wonder why immigrants show up here and 2 years later they have their own store ? It is because they work harder than the rest of Canadians and take advantage of opportunity. This country is full of opportunity but most people just want a handout.
Jim Cotton - -0001-11-30 00:00
"it is people who produce and consume wealth, not business" Um, correct me if I am wrong, but people are behind businesses are they not ? You make it sound like Business is some mythical creature, but people run and own businesses.
Jim Cotton - -0001-11-30 00:00
I stop and think what I get for my money. I pay about $100,000 a year in taxes. Do I get $100,000 worth of services from the government ? Not even close.
Jim Cotton - -0001-11-30 00:00
Wow Jim, if you're paying about $100,000 in taxes every year then your six figure take home salary can still allow you to live fairly comfortably in Canada - something most of your fellow Canadians can only dream about. You're right, you probably don't get that $100,000 back in services because, you guessed it, you're supporting people in the lower tax brackets. I guess if you wanted to live in a country with low taxes on the highest tax brackets, you could escape to Dubai. Or perhaps Canada should become a country of extreme wealth and poverty, like Brazil, with mansions overlooking shanty towns in the distance? Ahhh, that would be the life wouldn't it?
Jerry - -0001-11-30 00:00
Wow, you and your public servant co-workers are all working 80 hour weeks ?? Why don't you stop hogging all that overtime and create a few jobs ?? !! LOL . You are wrong about addictions programs and shelters not existing without government funding. 12 step programs don't take a cent of government funding , and there are shelters and soup kitchens in Winnipeg that do not take government funding , either. If the government didn't take 40% of your salary , would you be able to give more to charity Jerry ? Wasn't it the MGEU that gave a bunch of cash to the Human Rights museum ? We have people without running water in this province, not to mention homeless people. Do you think the union could have put the money to that instead of helping a millionaires pet project ? Union Dues should be saved to help members when they go on strike in my opinion , so they can have less pressure to get back to work and fight for a better contract.
Jim Cotton - 2009-06-05 17:52