The Biggest Drag On Income Growth In Canada Is Government, Not The Rich

[Anonymous]

True Dope and Nothead are as hypocritical at Hillary Clinton.  They are not champions of the middle class, they are a burden on the middle class with their greed for more of their money. A rise in pay for one person does not  equal a drop in pay for someone else unless we're talking about a snivel serpent who's higher paymeans higher taxes for us.



Of course, this doesn't even take into  consideration the job killing roadblocks True Dope has put up to prevent getting our exports to new markets.

 

"The rich got richer." "Top 1% made even more." "Canada's 1% gained faster than bottom 99%."



Those were the entirely predictable headlines that greeted the release this week of StatsCan's annual report on Canadian incomes from the most recent reporting year, 2015.



The implication in the stories that followed was mostly that the wealthiest 1% of income earners had won while the rest of us had lost.



This is consistent with the modern narrative that income inequality is growing. The wealthiest among us are making out like bandits while the rest of us are slipping behind.



It is this narrative that seemed to resonate with middle-class voters in the 2015 federal election when the Trudeau Liberals effectively portrayed themselves as the champions of beleaguered suburbanites.



It's also this narrative the Liberals tried to employ this summer to ram through one of the largest personal tax increases in recent history by portraying the stalwarts of the middle class — small businesspeople, farmers, fisherman, shopkeepers and professionals — as rich tax cheats who weren't paying their fair share.



But the StatsCan numbers reveal neither a shrinking middle class nor one that is falling behind, at least not in absolute terms.



"Average income for tax filers in all income brackets rose 2.6%" in 2015 over 2014, "the largest annual increase since 2006."



And this may surprise you: The One Percenters saw their income increase in 2015 "for the first time in nearly a decade." If anything, the rest of us rose faster than the top 1% between 2006 and 2015.



Yes, the One Percenters received a bigger piece of the pie in 2015 (11.2% versus 10.3%  in 2014).



But the pie got bigger, too. That means the One Percenters did not get richer at the expense of the rest of us.



Income growth is not a "zero-sum" game. It is not necessary for most Canadians to suffer for a few to gain.



So, if you have the impression that your family is paddling harder and faster just to keep your heads above water, and then you hear reports that "the rich are getting richer," the two are not necessarily related.



So, if it's not those nasty One Percenters, just who is keeping us honest, hardworking middle-classers down?



Would you believe it's the very institution that insists it's our friend, our defender against the greedy fat cats? Would you believe it's rapacious, insatiable, hoggish, money-grubbing, expansive government?



Because it is.



Governments confiscate more than $2 out of every $5 the average Canadian family makes. That's noticeably more than goes to our basic necessities — food, clothing and shelter.



While the average family income has nearly doubled in the past 50 years after accounting for inflation, the average family's tax burden has nearly tripled.



For every extra dollar families have made, governments have taken about $1.40.



The federal government and every provincial government has increased income taxes. Most have increased sales taxes, gasoline taxes and so-called sin taxes on liquor and cigarettes.



And municipalities have increased property taxes again and again.



Then there are taxes no one ever heard of a half century ago — carbon taxes, gas guzzler taxes, recycling "fees" and the like.



A study by the Fraser Institute released in September showed that while the Trudeau Liberals had, indeed, lowered the tax rate the middle class was paying, it had gotten rid of so many tax deductions and credits that 80% of middle-income Canadians were paying more tax — an average of $900 more a year — than under the Harper Tories.



It's Big Government that's eating into our pieces of the pie, not rich individuals or big corporations.

http://torontosun.com/opinion/columnists/gunter-its-government-not-the-rich-thats-causing-income-troubles">http://torontosun.com/opinion/columnist ... e-troubles">http://torontosun.com/opinion/columnists/gunter-its-government-not-the-rich-thats-causing-income-troubles

[Anonymous]

No guiding policy for the inept True Dope, just spend, spend, spend. Just  continue being a drag on imcome growth through higher taxes.



By Jason Clemens and Niels Veldhuis

s we pass the mid-way mark in the Trudeau government's mandate, it's clear its only guiding principle for fiscal policy is "just spend more."

 

Spending more, regardless of economic conditions, is not only not sound policy, but seriously risks the country's finances and is all too reminiscent of the 1960s and '70s, which took Canada almost three decades to recover from.

 

Broadly stated, there are two economic approaches to government finances.

 

The first is rooted in Keynesian economics, named after one of the most influential economists of the 20th century, John Maynard Keynes.

 

The basic idea underlying this approach is to manage the demand side of the economy to smooth out economic fluctuations.



In bad times, the government stimulates demand, particularly by consumers, by spending extra money, lowering tax rates, and/or lowering interest rates and thus (at least theoretically) improving the economy.



Conversely, in good times the government reduces spending, increases tax rates, and/or increases interest rates to temper the economy to prevent it from overheating.

 

The other approach, often called supply-side economics, argues that government lacks the information and incentives to manage the economy along Keynesian lines.

 

It focuses on improving incentives in the economy for savings, investment, entrepreneurship, business development and work effort.

 

The idea underlying this approach is to get the "rules of the game" and incentives right so individuals, families, entrepreneurs and businesses make better, more productive decisions, which leads to a stronger economy.



The reality of politics is that neither approach is ever implemented or maintained in its pure form.

 

Rather, government policy tends to ebb and flow between these two sets of policies.

 

For instance, the Chretien Liberals tended more towards improving incentives and the "rules of the game" by balancing budgets, reducing tax rates, and reforming government spending.

 

The Harper Conservatives had a more mixed record, favouring Keynesian-type policies during the 2009 recession and its immediate aftermath while promoting better "rules of the game" outside this period.

 

Neither of these approaches seems to be operative in the current Trudeau government.

 

Instead, there seems to be a drive to simply spend more money.

 

If the economy is weak, Ottawa should spend money.

 

If the economy is strong, Ottawa should spend money.



 That's not a guiding principle for fiscal policy; it's a path to fiscal calamity.

 

Specifically, the Liberals under Prime Minister Justin Trudeau took office in late 2015 and immediately boosted spending by roughly $7.7 billion compared to the existing budget plan of the previous government.

 

Less than six months later, in its first full budget (2016), the government increased spending by $66.3 billion over the four-year period 2016-17 to 2019-20 compared to the 2015 budget.

 

A year later, in its 2017 budget, the Trudeau government increased spending by another $10.9 billion over this same four-year period.



To further understand the height of current federal spending, consider that per person spending (adjusted for inflation) is now at its second highest level in Canadian history, behind only Harper's spending in 2009 in the depths of a global recession.

 

Perhaps more telling is the economic update the Trudeau government released in October, which introduced more new spending of $17.5 billion between 2017-18 and 2022-23, despite the government's pronouncement the economy was improving.

 

Simply spending more money is not sound fiscal policy and seriously risks Canada's finances.

 

Remember, these spending increases and ensuing deficits are occurring outside a recession.

 

Any economic slowdown, perhaps even a recession, will place the government's finances into deeper deficits, which would likely take a decade or more to work out of, meaning the country will accumulate substantial additional debts that will further burden future generations.

 

As Canadians take stock of the Liberals' two years in office, it's worth considering the lack of a functioning guiding principle for fiscal policy — other than what appears to be a proclivity for evermore spending, which seriously risks imperiling federal finances.

[Zetsu]

I just don't get it, I mean how greedy and entitled can the libtards get.  I know I come from a city where tax rate caps at 0-12% even if you're making billions, but even in mainland China tax only reaches up to 25% max and they have a much bigger government per capita iirc.  Not to mention everything is just getting more and more expensive in Canada thanks to our tax rate.

[Bricktop]

Tax is theft. Government is not the solution, its the problem.

[Zetsu]

Tax is theft. Government is not the solution, its the problem.

I agree, as the world becomes more advance and requires more skilled, educated and/or productive ppl to keep up with the overwhelming technology that revolves around us, the government will be the last stand/resort for the these greedy bottom dwelling losers to guarantee their income/wealth by working in the government and become the "monopoly" in the tax system and exploit the skilled, productive and hardworking through tax dollars.  In the next economic war our government is nothing but an enemy or parasite of the society and will stir up the decline of the West.

[Anonymous]

I don't object to paying for services, but the excessive and increasing burden we pay is confiscation.

[Zetsu]

I don't object to paying for services, but the excessive and increasing burden we pay is confiscation.

I concur too, imo stuff like government admin, education, law enforcement/national defense, etc, health care is critically needed, but the problem is a lot of countries and cities with a conservative system offer the same necessity service but with a much lower tax rate.

[Anonymous]

I don't object to paying for services, but the excessive and increasing burden we pay is confiscation.

I concur too, I think basic stuff like government admin, education, law enforcement/national defense, etc, health care is critically needed, but the problem is a lot of countries and cities with a conservative system offer the same necessity service but with a much lower tax rate.

In many cases they do provide better essential services with lower taxes..



Canadians have been brainwashed into believing higher taxes equals better services, but like you said, that is not true.

[Anonymous]

As a life long socialist, I used to accept without question the noise that the super wealthy were taking money from my pocket and socialist parties like our NDP were Robin Hood and Santa Claus combined putting more back in. Nothing could be further from the truth.

[Zetsu]

As a life long socialist, I used to accept without question the noise that the super wealthy were taking money from my pocket and socialist parties like our NDP were Robin Hood and Santa Claus combined putting more back in. Nothing could be further from the truth.

How the rich became more rich is all due to globalization and the world's cheap labour, but I can tell you there's nothing to envy about b/c all the big companies and corporations of the world are mainly designed to cater mostly to the middle and lower class.

[Anonymous]

As a life long socialist, I used to accept without question the noise that the super wealthy were taking money from my pocket and socialist parties like our NDP were Robin Hood and Santa Claus combined putting more back in. Nothing could be further from the truth.

There really isn't socialism anymore. Tommy Douglas's movement has been hijacked by affluent libtards who have no shame about taking money from billionaires to advance their anti-working class agendas.

[Zetsu]

As a life long socialist, I used to accept without question the noise that the super wealthy were taking money from my pocket and socialist parties like our NDP were Robin Hood and Santa Claus combined putting more back in. Nothing could be further from the truth.

There really isn't socialism anymore. Tommy Douglas's movement has been hijacked by affluent libtards who have no shame about taking money from billionaires to advance their anti-working class agendas.

Lol it's weird despite how much problem China has, we still believe it's morally wrong to force people to give you their money that they worked for, while the West a noticeable number of libtards which they preach moral and humanity have no concept of this understanding.

[Anonymous]

Lol it's weird despite how much problem China has, we still believe it's morally wrong to force people to give you their money that they worked for, while the West a noticeable number of libtards which they preach moral and humanity have no concept of this understanding.

Depending on the province you live in, it's possible to pay 56% of your income in income taxes. This doesn't even include fees, sin taxes, excise taxes and payroll taxes. That is mafia-easque and immoral. We are not free when we can't keep our own money.



Fuck the waste of money commission on missing and murdered Aboriginal women. We've had 40 of them  already. Let's have one on taxation.

[Zetsu]

Lol it's weird despite how much problem China has, we still believe it's morally wrong to force people to give you their money that they worked for, while the West a noticeable number of libtards which they preach moral and humanity have no concept of this understanding.

Depending on the province you live in, it's possible to pay 56% of your income in income taxes. This doesn't even include fees, sin taxes, excise taxes and payroll taxes. That is mafia-easque and immoral. We are not free when we can't keep our own money.



Fuck the waste of money commission on missing and murdered Aboriginal women. We've had 40 of them  already. Let's have one on taxation.

That's pretty insane taxing someone 2/3 of their income, when I was a kid I thought these were rumors only, lol.  It gives me this feeling even if I give them all the money I make it'll still not be enough for them to spend.    Sad to see to this day slavery still exist, lol.

[Anonymous]

Lol it's weird despite how much problem China has, we still believe it's morally wrong to force people to give you their money that they worked for, while the West a noticeable number of libtards which they preach moral and humanity have no concept of this understanding.

Depending on the province you live in, it's possible to pay 56% of your income in income taxes. This doesn't even include fees, sin taxes, excise taxes and payroll taxes. That is mafia-easque and immoral. We are not free when we can't keep our own money.



Fuck the waste of money commission on missing and murdered Aboriginal women. We've had 40 of them  already. Let's have one on taxation.

That's pretty insane taxing someone 2/3 of their income, when I was a kid I thought these were rumors only, lol.  It gives me this feeling even if I give them all the money I make it'll still not be enough for them to spend.    Sad to see to this day slavery still exist, lol.

It must be a cultural difference Zetsu..



Like you said, East Asians would never accept any excuse for that kind of confiscation..



It is modern day slavery.