Canadians earning $100,000 or more annually (it’s really not that much for a family of four with two kids in university) incur a marginal income tax rate greater than 50 per cent. This means that most of that last dollar they earned goes to government. When HST and other levies are added, one must conclude that many are working for the government first and themselves and their families second.
How has this happened?
First, let’s look at the average medium-income family’s response to an unexpected rise in their cost of living, assuming their debt load is maxed out and more income is unlikely. They reorder their priorities. Maybe it’s a staycation. Maybe it’s getting another year out of the family car.
Now, contrast this with government’s response to new challenges. It’s always the same: new taxes and more revenue are required. Seldom do our leaders reorder priorities.
If, as we are told, climate change is so significant that it threatens our very survival, is there no government spending we could do less of to address this existential threat? The answer is likely no; it’ll mean more taxes.
Why does this happen? Probably because it seems easier for politicians to justify the urgent need for more tax revenue than to take away a financial benefit or service we have incorporated into our lives. It’s our fault.
Doug Appt, Halifax
