Taxes are far too high. This is obvious. The Canadian debt load, including future off the balance sheet guarantees is well over $15 Trillion or $1 million per adult tax paying Canadian. Similar debt levels per taxpayer exist in other Western states (in which half of all tax payers pay no income tax). This means that to solution current debt levels [$1. 5 Trillion, or $100.000 per Canadian for example] and future debt levels [$15 Trillion and $1.000.000 respectively], you will need to do 5 things:
Cut spending by 35% in the next 4 years.
Cut taxes and implement a fair flat tax on consumption 15% [to create capital, investment and over time, jobs]. This provides enough money for essential government services.
Get rid of personal and corporate income taxes over time.
Reduce unfunded obligations by freeing health care, freeing the utility and energy sectors, reforming the education system [vouchers, competition], curtailing and reducing union power, and reducing benefits and goodies to the voters.
Fight inflation through higher interest rates and stop devaluing the currency [more of a US problem, but interest rates across the world are far too low, which guarantees future inflation].
When you raise taxes your revenues fall. Taxes are the single biggest expense for families. Cut them.
In 2010, the average Canadian family faced a total tax bill of $29,913 against income of $72,393. This means all taxes imposed on the average Canadian family consumed more than 41% of its annual income.
Such taxes include income taxes, payroll taxes, sales taxes, property taxes and a host of other taxes that Canadians pay but don’t necessarily see. The average family’s tax bill has grown more rapidly than any other expenditure item over the past 50 years.
More specifically, the tax bill for a family with average income has increased by 1,686% since 1961. In contrast, expenditures on housing increased by 936%, food by 460% and clothing by 416% over the same period.
The total tax bill has grown to the point where families are now paying more in taxes than they do for these basic necessities.
While just over 41% of the family’s budget went to paying for government, 34% of the budget went to paying for food, clothing, and housing combined.
No politician would even implement the above. The current drift and status quo will lead to bankruptcy in the form of inflation, higher taxes, and a default on unfunded liability payments such as corporate and regional transfers, higher utility and energy costs, old age pensions, government worker health and expense benefits, or the degradation of socialized health care.