"Income tax has made more liars out of the American people than golf," said the American humourist Will Rogers. Indeed, but lets not stop there. In Canada, debates over taxes, government and civilization lead some journalists and others into the land of make-believe, this by setting up straw men to knock down.
For example, consider a recent CBC story headlined "Not all business people hate taxes - but just try to get them to admit it."
To which one can only say: This is news?
As Albertans approach another provincial budget, the usual fables about Alberta's finances often crop up. To inoculate ourselves in advance, let's ponder two myths.
Myth Number One: Alberta's wealth is a result of luck.
This tall tale assumes that the existence of natural resources automatically results in wealth creation, jobs, and a higher standard of living. That's hardly the case. Plenty of jurisdictions have little in the way of natural resources but prosper, while others have plentiful natural resources yet flounder.
Until recently, there was a consensus in favour of competitive business taxes. But whenever governments are strapped for cash - which is most of the time for most of them, given their voracious appetite for spending - eyes quickly turn to corporate income taxes as an expedient and presumed painless way to extract more revenue. Two provinces raised corporate tax rates in 2013.
About five years ago, I became acquainted with a retired fellow by the name of Jim Tocher. Then in his eighties, Mr. Tocher was a classic Canadian success story. Born in Golden, B.C., he spent his early years in Yoho National Park where his father worked as a park warden. As a teenager, Jim worked as a park guide, for the Canadian Pacific Railway as a fireman and for Brewster bus lines, ferrying people into the national parks.
A new year can bring new possibilities. Its a chance to take stock of what weve accomplished in the past year and to set new goals for the future. Its also, however, when Canadian governments typically enact new taxes. Unfortunately, governments across the country in recent years have been all too keen to bring in new taxes or increase existing ones, resulting in squeezed household budgets. The question for 2014 then, is will this trend continue or will governments recognize its time to give taxpayers a break?
It's not your imagination. Your property taxes really are shooting higher.
For those who haven't paid attention to their property tax bill until recently, let me offer some calculations: Had the city and province stuck to inflation-only increases starting in 2007, a homeowner with a $2,500 property tax bill in 2006 would see a $2,858 bill this year. Instead, the charge will be $3,430, or an extra $572. The cumulative effect over seven years is an extra $1,538.
Many Canadians and commentators in other countries lauding Canada's government-dominated approach to health care refer to Canadian health care as "free." If healthcare actually was free, the relatively poor performance of the health care system might not seem all that bad. But the reality is that the Canadian health care system is not free in fact, Canadian families pay heavily for healthcare through the tax system. That high price paints the long wait times and lack of medical technologies in Canada in a very different light.
When Manitobas NDP government delivered its budget back in April, Finance Minister Stan Struthers ruffled some feathers with his announcement of an increase in the provincial sales tax (PST) to eight per cent from seven per cent, effective July 1, which happens to be Canada Day. His proposed tax hike has been hotly debated ever since.