Quotulatiousness

January 29, 2010

High taxes/low taxes, it’s all relative

Filed under: Cancon, Economics, Government, History — Tags: , — Nicholas @ 09:27

Lorne Gunter finds that what were once considered “intolerable” rates of taxation are microscopic compared to what we pay today:

The American colonists, by comparison, felt they were groaning under a crippling tax burden. Many of their staples, they felt, were onerously taxed while they received little from England in return and had no say in how large the levies against them would be.

[. . .]

So out of curiosity, I asked the historian what the level of taxation was in 1776 that caused the U.S. to declare its independence.

I will always recall his answer: “the equivalent today of about 5% to 7% of their income.”

What?

Today, in Canada, all levels of government, through all their taxes, can confiscate as much as half or more of a taxpayer’s income, in total. Income taxes, pension claw-backs, the GST, gasoline excise taxes, import duties and tariffs, estate taxes, property taxes, capital gains and on and on and on.

And yet, like the abused spouse rushing back to an abuser, many Canadians continue to sing the praises of ever bigger and bigger government. They rush to it in any crisis looking to be saved, whether through “free” health care during times of personal crisis or through auto company bailouts that demonstrate solidarity with distant workers in distant communities during times of global crisis.

The problem has been that Canadians expect the government (at all levels) to do something any time there’s a real or perceived crisis. Governments are happy to oblige by (at least appearing) to do something. Inevitably, the scope of what the government does increases every year. As “Steve the Pundit” wrote in the comments to the original article:

It’s true that Canadians have become far too dependent on government to save us from any crisis, large or small, much in the same way that the citizens of Metropolis continually looked to “Superman” to save them from all of their ills, whether it be an irradiated mutant bent on mass destruction … or a purse snatcher. Any crisis, it seems, “… look(ed) like a job for Superman!”

Exactly.

3 Comments

  1. Very interesting history lesson

    Comment by Allan — January 29, 2010 @ 18:49

  2. I spoke to one professor in college. He worked for Revenue Canada. He said that once you add up all the hidden taxes, import taxes, taxes on taxes, etc. you are looking at close to 80% taxation.

    Comment by Da Wife — February 1, 2010 @ 10:27

  3. As several wags have noted, let’s all be grateful we don’t get all the government we pay for . . .

    Comment by Nicholas — February 1, 2010 @ 10:33

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