Wednesday, May 11, 2011

Bits and Pieces: PT 4 “Taxes take 41% of pay” Gasp??

[It has become fashionable these days to view government spending as a tremendous burden on society. In fact, spending our money collectively through governments, with their strong emphasis on health care, education and welfare, is the smartest investment we, as a society, can make. Shooting The Hippo, 1995, by Linda McQuaig]

Sixteen years have passed since L. McQuaig wrote the above words. They are still true.

The average Canadian family may be getting a very good deal for the 41% it pays in taxes, 34% it pays for food, clothing and shelter and the 25% it has left over to spend on whatever it wants.

And what does the average Canadian family want? Well, if you're average, let me know!


Because, though Fraser Institute spokesperson, senior economist Niels Veldhuis, says, “Taxes have grown over the past 49 years to the point that the government is now the largest expenditure facing a family” (April 27, London Free Press), he doesn’t say what the average Canadian would actually gain by reducing taxes or the size of government or its programs.

The average Canadian could buy more food I suppose, though we are growing more obese by the day.

We could buy more clothes and more furniture for our home, I suppose. We could upgrade our transportation, communication and recreational choices, I suppose.

But perhaps there’s more benefit to putting money aside for collective choices as opposed to individual choices. More on all of us, others. Less on the individual, me.

I don’t know if Canadians will ever find out.

The more elitist organizations, such as the conservative Fraser Institute, propose fewer taxes and smaller government (without context, and usually for the elite’s overall benefit - what might that be? - and not the average Canadian’s), the more likely the average Canadian will, unknowingly, lean toward the goals of the elite.

And what are the goals of the elite?

“In many ways, what the elite wants now is to lower citizen’s expectations of what they can count on from society, to roll back the frontiers of government - to return to an earlier focus on enforcing more narrowly defined legal and political rights. It wants to wean us away from the notion of government as provider and equalizer, and re-establish the discipline of the marketplace in meting out those sorts of rewards where they are “earned.” Under the harsher discipline of the marketplace, we would have no automatic “rights” or “entitlements:” all we would have is whatever we could get by selling our services to those with the money to pay us.

“Presented this way, the new ideology might not sound appealing to most members of society; so it is rarely presented this way. Rather, proponents of rolling back government have focused on finding fault with the system of extended rights that we’ve come to enjoy, or presenting ordinary citizens as victims of an excessive tax burden apparently caused by government largesse.” pg. 7, Shooting the Hippo


Are ordinary citizens in Canada, e.g., the average Canadian family, victims of excessive taxes?

I don’t think so. The average family is growing big and strong on 34% of its income (maybe too big and strong) and has 25% leftover to buy additional stuff that will one day clutter up a big house and garage in the burbs.

Instead of worrying or questioning the size of government, we should ask for a lot more information from the Fraser Institute. They paint wild pictures and make claims that are completely unsubstantiated.

Perhaps we should even read Shooting the Hippo by Linda McQuaig so we’re better equipped to recognize a pile of guff when it appears in the news.

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Please click here to read PT 3 “Taxes take 41% of pay” Gasp??

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