201989
202187
Economics-101

A day in the life of a Cdn taxpayer

I awoke this morning hoping that it was simply a nightmare. Unfortunately it was no nightmare…it’s real…it’s Tax Time! Realistically if you eat, sleep, breath or simply have a pulse in this country, it's Tax Time 365 days of the year. Ninety-seven years ago Prime Minister Robert Borden introduced a temporary tax in 1917 to assist with the war effort of World War One: This was called Income Tax. Did I mention that this was temporary?

This morning I rolled out of the bed that I paid 12% tax on and turned off my radio alarm that I paid an additional 12% tax on at time of purchase. I jumped into the shower, turned on the warm water of which I pay for the water as well as a tax on the gas to heat the water. I put on a suit, shirt, tie, socks and shoes all of which the government was more than happy to charge me an additional 12% tax. I then exited my house which at time of purchase I paid $25,000 in GST, $10,000 in B.C. Transition Tax and $8,000 in Property Transfer Tax. That’s right; $43,000 in tax was paid at time of purchase. This is in addition to all of the taxes that were paid on the labour and inputs that went into building the house. However, this is just the beginning of paying taxes as a homeowner. I have now earned the privilege of paying an additional $3,400 annually in property taxes. And as we have seen every year of late, this tax increases annually. I jumped into my truck which I paid an additional $6,000 in PST and GST at time of purchase. Lucky me! I then stopped to get some gas where I was treated to the pleasure of being double taxed. That’s right, I said double. I grabbed a coffee as I pulled into work and you guess it…I paid 5% tax on the coffee.

As I sat down at my desk a bitter-sweet feeling came over me. It’s pay day! Why is this bitter sweet you ask? Well, the government takes 40% of my paycheque every two weeks. It’s also the end of the month, thus I will be receiving a performance bonus. Wait for it….Yup, another 40% of that is stolen from me before I see a single red cent. After reviewing my pay stub I feel like calling 911 to remove the two daggers from my heart. Now to pour salt and vinegar into my fiscal wounds, I get a call from my accountant saying that I will have to pay a lump sum to the government as she has just completed my tax return.

You should be feeling nauseous about now. But don’t fret, it gets worse. The percentage of taxes on income, goods and services continues to increase with each generation. This article is not only timely as it is tax season; it also comes at a time when our teachers have invoked “work action.” There is not enough of our tax dollars directed to educating our children. As a result, kindergarten children and other grades have had their second recess taken away from them. And there’s more austerity to come for our children’s education if this issue is not resolved. Now there may be some people who have no problem with all of the taxes that they pay. Good for you: the government loves you. However it’s not just the tax payer being punished anymore, our children are now paying the price with their education. And of course all of this is occurring at a time when we just gave $220 million to the Ukraine, Christy Clarke lost an election and decided to have another one to the tune of $500,000 to the B.C. taxpayer, and of course we have all sorts of money to send Canadian destroyers and fighter jets over to the Baltic sea to provoke a war with Russia.

If you’re not pissed off, you should be. It’s time to march on our MLA’s office.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.



More Economics 101 articles

201564
About the Author

Derrick Nicholson is a Currency Strategist. He has been in the industry for the past 20 years, and specializes in mitigating currency risk for companies doing business outside of Canada.

Questions and inquiries can be directed to Derrick at [email protected].

 



201790
The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

Previous Stories