This Old Economist: Could some good news lead to more?

Headline: “Rich Canadians charitably minded”

Line 1: “Almost two-thirds of wealthy Canadians plan to give away between 1 and 3% of their wealth this year, with the majority saying the recession has not affected their donating habits...” (Nov. 15, London Free Press)

How could that not be good news?

I’m sure most charities and non-profit organizations in London would say they wouldn’t be around and helping others if not for the generosity of Londoners, including the most wealthy citizens in town.

Though “the classic personal donor gives without being asked, (and) wants to be involved in how the gift is used,” I wonder how they would feel about supporting - by 1% more than they already do - the greatest organization in Canada, i.e., Canada.

Would the wealthiest support a 1% tax increase in an attempt to pay down record national and provincial debt so that future generations do not find themselves in a truly vulnerable position re educational, health care and other money matters?

My question is flavoured by my notion that the wealthy can afford to help more than they already do.

National taxation systems tend to favour the wealthy, in my opinion.

For example, in the US, Pres. G. W. Bush passed a “raft of tax breaks” while in office (which the Republicans want to see continued), favouring the wealthy to a large degree. (Nov. 15, “Obama confident of deal on tax cuts”, London Free Press)

Also, in a book re the successes and failures of Globalization I read the following:

“There was broad deregulation, privatization, a lowering of tax rates at the top half of society, and a shifting of the tax burden from the top directly and indirectly through stealth taxes to the bottom. Governments were feeling seriously squeezed as their tax base shrank and the moral pressure to balance their budgets grew.” (pg. 111, The Collapse of Globalism, John Ralston Saul)

So, apparently, the money is out there to support numerous good causes (and so we all should) and, in my opinion, the finest one in all the land, i.e., our land.

Some will want to wait for a growing economy to bail us out of debt.

I don’t think we should wait for the economy. One per cent more taxes, applied to the debt, will allow us to see how large our debt really is and how much real effort is going to be needed to make life a wee bit easier for ourselves in this generation and those that will live in our houses after we are gone.

Is one per cent a good start?

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Is the money out there?

Debt may not be totally within our control anymore.

And the tax lever is just one we should be willing to pull to help the cause.

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