Friday, January 13, 2006

Federal Parties Spin promises while Tax and Spend go up

Tax reform; spending reform are not 'Canadian values'

by StFerdIII

The Federal Liberal party spent close to spend $185 billion in fiscal 2004-2005. As most political parties do whilst in power they lied about the surplus [ie. overtaxation], that allows them to build new programs, extend existing welfare, and dispense multi-billions to buy various interest group votes. This is a yearly Liberal and government ritual where they deny there are surpluses in order to negate any mention of tax relief or tax cuts. Federally in the past year Canadians were overtaxed by $9 billion – all of which was promised in new spending to buy votes for the current election cycle. It remains to be seen if any change of Government will bring back needed tax relief in a country that is badly managed, over politicized and hugely over taxed by international standards. A key comparison; Americans [yes the hated Americans only surpassed perhaps by the hated Jews in Canada’s deformed social liberal media], have 30 % higher net incomes. But of course this makes Canadians superior.

As John Williamson of the Canadian Tax Payers Federation stated, “The government priority should be to cut down the debt, but also to return to Canadians some of the surplus through broadly based income taxes. There should be no discussion on spending.” The Americans in 2004 launched another $120 billion business tax reduction along with the $1.3 Trillion cuts in 2003. There was no similar movement in Canada either from ‘Conservatives’ nor of course from the media who are still obsessing about Gay Marriage equality and why judicial activism must trump Parliaments and democratic referendums.

As many analysts have pointed out $20 billion could be erased tomorrow from Canadian Federal spending with not a single cent being taken out of current socials programs. Yet few in the media or in politics talk of tax relief. Certainly not the ‘Conservative’ party who meekly mention while apologizing after, that the Value Added Tax or GST reduction from 7 % to 5 % would be helpful. What would be really helpful is taking the GST down to zero and enacting wide ranging personal, corporate and investment tax reform.

Alongside real tax reforms we need to introduce private competition into the North Korean Health Care system that eats up $110 Billion per annum as well as massively restructure public education; reduce or eliminate regional programs, corporate subsidies, intra-Canada trade distortions, farming, lumber and fishery subsidies, EI over payments and $15 billion or so in regulatory fees; all of which confiscate earned income, lower investment and kill jobs. Our military is a joke, with a recent report stating that ½ the military will vanish by 2013. Yet such reforms listed above are too American, too scary, too rational and upset Canadian values. So tax reform and spending reform languish in obscurity.

Over-taxation exists in a country where 47 % of earned income is taken back by governments as tax money. Indeed by 2006 Ottawa will be collecting $1000 more in tax per Canadian than it did in 2001. By 2006 the total over-taxation will be $98 billion more than in 2001. In other words Ottawa’s spend and tax approach means that Canadians are paying more tax dollars per year, year over year. As ever more amounts flow into the Federal tax bank accounts more money is wasted and corruption becomes legion. The criminal dishonesty of the Federal Government in Canada is notorious and obvious, with billions disappearing in various programs that are completely unnecessary [Gun registration, Human Resource Training, Advertising Canada in Quebec etc.] . Alongside this criminal waste our military is starved to death; border security ignored and the debt remains stagnant at $580 billion. In fact 40 % of each personal income tax dollar goes to pay interest off the debt. By eliminating the debt [which was the purpose of the GST] Canadians would gain a 40% net income increase stimulating the economy and investments in jobs and products.


Yet tax and spending reform apparently offend Canadian values. The socialization of a country occurs within one generation. For forty years the vision of the socialist Trudeau who maintained in 1984 that the Soviet Union ‘was the future’ permeates the Canadian mentality or a goodly part of it anyways judging by the media, political support for left wing parties and the rash anti-Americanism that apparently makes Canadians feel proud. Higher taxes are now a ‘value’ as sacrosanct as ice hockey, watered down beer, or the state owned CBC. It does not take an ironic comic to create a parody of such a people or such a place. In fact one only has to read George Orwell to get the essence of Canadiana and Orwell was anything but sardonic.

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Canada vs the USA:
• Canadian Government spending is 43 % of GDP vs. 30% in the USA.
• Productivity for 2004 was 1.2 % in Canada and 4.0 % in the USA.
• Serious assaults per 100.000 people is at 140.2 in Canada double that of the USA.
• Theft per 100.000 people is 4000 in Canada more than double that of the USA.
• More people are employed by Revenue Canada than we have in the military.