I thought we could use this thread for posts about expensive unnecessary, red tape and cumbersome regulations which are make make work projects for bureaucrats, but job killers for the private sector.
By Lorrie Goldstein of Sun News Media
Complex tax returns costing Canadians billions, report says
As Tuesday's income tax deadline approaches, a new study by the Fraser Institute says the increasingly complex tax returns Canadians have to file to the Canada Revenue Agency is costing them billions of dollars annually, just to fill them out correctly.
"A growing web of complicated rules and changes has made the tax system more difficult for Canadians to understand, which affects the cost — in time and money — of compliance," said Finn Poschmann, co-author of the study, Tax Complexity in 2019: Can it be Tamed?
From 1990 to 2018, the size of the federal Income Tax Act and its regulations alone increased by 72%, according to the fiscallyconservative think tank.
The number of pages increased by only 2% but that's because the size of the pages was increased by 69%.
From 2001 to 2016, the length of the federal personal income tax guide (in this case, for Ontario) increased from 48 pages to 78, or by 63%.
From 1996 to 2016, the number of personal exemptions, deductions, credits and exclusions on income tax forms increased from 111 to 146, or by 32%.
Over the same period, the number of corporate exemptions, deductions, credits and exclusions increased from 66 to 76, up 15%. The growing complexity of income tax returns has sent Canadians scrambling to accountants, lawyers and software programs in order to get their tax returns right, the study says, one of the effects being a sharp decline in paper returns.
Citing previous Canadian research, the Fraser Institute says that as of 2012, Canadians were paying between $5.84 billion and $6.96 billion annually just to fill out their personal income tax returns. Add in the cost of calculating business and property taxes, and the cost to government of administering the income tax system, and the total price tag for 2011 (the last year for which a comprehensive estimate is available) comes to between $25.8 billion and $31.4 billion annually.
Last year, the Chartered Professional Accountants of Canada association, quoted in the Fraser report, warned the federal government that income taxes have become extraordinarily complex for Canadians and the entire system is in desperate need of reform.
"Fifty years have passed since the tax system last underwent a thorough review," CPAC said. "Since then, it has accumulated a patchwork of credits, incentives and narrow fixes — many with noble aims when introduced — but that together have created a bloated, complex and inefficient system that is holding Canada back." A similar warning came from the Canadian Chamber of Commerce in 2015, noting that "Canada's tax system is in urgent need of reform. It has become increasingly complex, multilayered, and a costly challenge for Canadian businesses of all sizes." The Conference Board of Canada said in 2017 that, the "Canadian tax system is known to be complex" and attributed part of the gap between what the tax system collects, and what the law might intend, to its complexity.
Unlike countries such as the United Kingdom, the Fraser report notes, Canada hasn't tried to simplify its tax system and "has demonstrated little concerted effort at regulatory reduction or simplification."
"Clearly our tax system has grown more complex for Canadian families, businesses and even governments," Poschmann said. "So if policymakers want to make it easier and less expensive to comply with the system, they should pursue simplification."
Indeed, you would think that after half a century, someone in the government would have thought of that.
Regulations cost small business almost $6,000 per employee.
:ohmy:
Herbert Grubel: Governments should pass regulations only if benefits exceed costs
Anyone who has watched CBC's Dragon Den knows that many innovators struggle financially. Meeting the demands of the regulatory agencies adds to this struggle and kills many projects. The continual growth in regulations may be one reason why economic growth in Canada is stagnating. Canadian governments use subsidies and tax breaks to encourage innovation because it increases employment, incomes and tax revenues. At the same time, these governments discourage innovation through extensive regulation, as illustrated by the above examples.
How big are the economic costs of regulation? We have a good idea of the cost of regulations that affect existing economic activities. A recent study based on surveys of firms by the Canadian Federation of Independent Business estimates the annual cost of regulatory compliance at about $31 billion. For small businesses that's an average cost of $5,942 per employee every year. These estimates provide some insights into the likely cost due to the reduction or prevention of innovative activities, which has not been calculated because there are no records of innovations that never came to market.
In principle, governments should pass regulations only if benefits exceed costs. Yet all estimates of costs and benefits are uncertain and civil servants have to rely on personal judgments in the design and approval of regulations. This would not matter if these individuals could be counted on to be unbiased in their judgements.
Unfortunately, civil servants as well as their political bosses are subject to incentives that bias their decision in favour of overregulation. If the sale of a given product they have approved causes consumers harm, they will be blamed and their careers paths suffer. If they unnecessarily regulate a product, their incomes and careers are safe. Making matters worse is that regulatory agencies tend to be staffed by individuals who believe consumers must be protected from greedy capitalists who put profits ahead of public safety. As a result, it is very likely that the regulation of innovative products has costs greater than benefits.
https://business.financialpost.com/opinion/too-much-regulation-is-stifling-canadas-innovation-economy
And no federal government has grown the size of the regulatory monster more than Justine has.
The rules around railroading are stifling. And they are written in blood.
Quote from: "iron horse jockey"
Like the tragedy at Lake Louise.
Why do you think this is a purely Canadian issue?
The same expansion of regulatory imposition occurs in most of the world. In fact, Australia probably leads the way...although the UK, with a combination of EU and its own rules and laws might have its nose in front.
This is a direct result of the perverted form of democracy we are in encumbered with, where political parties, once empowered, can ONLY implement their policies and social engineering through legislation, and specifically the taxation system.
It's been going on for decades. They use the taxation system to implement "green" policies. They use the taxation system to implement universal health care. They use the taxation system to control the consumption of alcohol, tobacco, fossil fuels, imported goods, exported goods, employment and thousands of other government agenda items.
Governments operate on a single fundamental principle; to implement, amend, or exclude laws. That's what they believe is their job. Laws and regulations are the means by which they manage and control. Of course, a law is only effective if there are sanctions in place against those who fail to abide by said laws.
The total effect is to impose enormous complexity on society, leading to social stress, breakdown and rebellion (such as France's gilets jaune).
Unless and until this corrupt and in-efficacious process of government is dismantled and replaced, nothing will change. It might be worth noting that since the rise of the yellow vest rebellion in France, Monsieur Macron has committed to implementing a simpler and more efficient process of referenda to enable citizens more say in how government works.
This is the future. Continuing to vote in this broken system will NOT initiate change. If the yellow vests have shown anything, it's that taking to the streets is the only option left open to us.
Bricktop, nobody is suggesting that Canada has a monopoly on excessive regulations..
We know EU nations are swamped with regulations.....Australia too..
But, we have seen more burdensome regulations since Justin Trudeau became prime minister....that's all Canadians are saying.
Quote from: "Bricktop"
The same expansion of regulatory imposition occurs in most of the world. In fact, Australia probably leads the way...although the UK, with a combination of EU and its own rules and laws might have its nose in front.
This is a direct result of the perverted form of democracy we are in encumbered with, where political parties, once empowered, can ONLY implement their policies and social engineering through legislation, and specifically the taxation system.
It's been going on for decades. They use the taxation system to implement "green" policies. They use the taxation system to implement universal health care. They use the taxation system to control the consumption of alcohol, tobacco, fossil fuels, imported goods, exported goods, employment and thousands of other government agenda items.
Governments operate on a single fundamental principle; to implement, amend, or exclude laws. That's what they believe is their job. Laws and regulations are the means by which they manage and control. Of course, a law is only effective if there are sanctions in place against those who fail to abide by said laws.
The total effect is to impose enormous complexity on society, leading to social stress, breakdown and rebellion (such as France's gilets jaune).
Unless and until this corrupt and in-efficacious process of government is dismantled and replaced, nothing will change. It might be worth noting that since the rise of the yellow vest rebellion in France, Monsieur Macron has committed to implementing a simpler and more efficient process of referenda to enable citizens more say in how government works.
This is the future. Continuing to vote in this broken system will NOT initiate change. If the yellow vests have shown anything, it's that taking to the streets is the only option left open to us.
It seems that large countries like Australia, America, and Canada like regulations large. I read New Zealand has much less red tape than those three countries.
Australia is one, if not THE most overregulated nation amidst Western democratic nations.
Not only do we have the Feds making laws, but also State governments and local councils.
I know that countries like the US and Canada have similar structures, so it's no coincidence that we are lumbering under an onerous and excessive burden of legislation.
New Zealand has a single level of government. Says it all, really.
Quote from: "Gaon"
Quote from: "Bricktop"
The same expansion of regulatory imposition occurs in most of the world. In fact, Australia probably leads the way...although the UK, with a combination of EU and its own rules and laws might have its nose in front.
This is a direct result of the perverted form of democracy we are in encumbered with, where political parties, once empowered, can ONLY implement their policies and social engineering through legislation, and specifically the taxation system.
It's been going on for decades. They use the taxation system to implement "green" policies. They use the taxation system to implement universal health care. They use the taxation system to control the consumption of alcohol, tobacco, fossil fuels, imported goods, exported goods, employment and thousands of other government agenda items.
Governments operate on a single fundamental principle; to implement, amend, or exclude laws. That's what they believe is their job. Laws and regulations are the means by which they manage and control. Of course, a law is only effective if there are sanctions in place against those who fail to abide by said laws.
The total effect is to impose enormous complexity on society, leading to social stress, breakdown and rebellion (such as France's gilets jaune).
Unless and until this corrupt and in-efficacious process of government is dismantled and replaced, nothing will change. It might be worth noting that since the rise of the yellow vest rebellion in France, Monsieur Macron has committed to implementing a simpler and more efficient process of referenda to enable citizens more say in how government works.
This is the future. Continuing to vote in this broken system will NOT initiate change. If the yellow vests have shown anything, it's that taking to the streets is the only option left open to us.
It seems that large countries like Australia, America, and Canada like regulations large. I read New Zealand has much less red tape than those three countries.
That is bc Maori are built like battleships and will spear the Kiwis in the guts if they burden them with unnecessary laws...
Quote from: "Bricktop"
Not only do we have the Feds making laws, but also State governments and local councils.
I know that countries like the US and Canada have similar structures, so it's no coincidence that we are lumbering under an onerous and excessive burden of legislation.
New Zealand has a single level of government. Says it all, really.
Which would explain why Singapore and the Scandinavian countries also have fewer regulations than we do.
I think Singapore is slightly different.
It, too, is highly regulated, but on a different level. It is still governed by a totalitarian government, albeit one which is committed to making their nation a better place through capitalism. However, the laws there can be quite strict. Chewing gum is still an offence. Littering can put you in a cell. Landlords are bound by law to provide housing to each ethnic group on a per capita basis. ALL car parking must be paid for, even in private commercial properties. You cannot keep a car longer than 5 years without permission.
It's largely accepted because the public there see benefits to there quality of life.
Quote from: "Bricktop"
It, too, is highly regulated, but on a different level. It is still governed by a totalitarian government, albeit one which is committed to making their nation a better place through capitalism. However, the laws there can be quite strict. Chewing gum is still an offence. Littering can put you in a cell. Landlords are bound by law to provide housing to each ethnic group on a per capita basis. ALL car parking must be paid for, even in private commercial properties. You cannot keep a car longer than 5 years without permission.
It's largely accepted because the public there see benefits to there quality of life.
It's ranked one of the freest economies in the world, year after year.
Its economy is rampantly capitalist. People there are quite wealthy.
Try insulting the government, though...and suddenly things go south in a big rush.
Quote from: "Bricktop"
Try insulting the government, though...and suddenly things go south in a big rush.
Singapore is proof that a government can flirt with authoritarianism and still have a free and open economy.
Indeed it is.
Quote from: "Bricktop"
Hong Kong still can't elect it's Chief Executive and their economy is very free too. Before Netanyahu's liberalizing reforms, Israel was a socialist basket case.
Singapore is an amazing if not miraculous example of capitalism and authoritarianism combined.
It is no coincidence that when Deng Xioaping rose to power in China, and sought to re-create the economy, the first head of state to visit him was Lee Kuan Yew. China's rise is modeled on Lee's Singapore. And that is a frightening prospect from an economical perspective.
However, when talking to friends in Singapore you raise the issue of Singapore's government and you experience an embarrassed hush, you understand that there is always a price to be paid.
Quote from: "Bricktop"
It is no coincidence that when Deng Xioaping rose to power in China, and sought to re-create the economy, the first head of state to visit him was Lee Kuan Yew. China's rise is modeled on Lee's Singapore. And that is a frightening prospect from an economical perspective.
However, when talking to friends in Singapore you raise the issue of Singapore's government and you experience an embarrassed hush, you understand that there is always a price to be paid.
Anybody that talks to me about Canada's government will experience an embarrassed hush too.
Just to do renos in your own home requires permits, so the city can raise your taxes.
It's the culmination of centuries of "democracy" that separated the political class from the population it was supposed to benefit.
In that respect, it has no distinction from other forms of government we abhor as dictatorships.
ALL modern forms of government are dictatorships.
Quote from: "Bricktop"
In that respect, it has no distinction from other forms of government we abhor as dictatorships.
ALL modern forms of government are dictatorships.
I wish we used referenda the way some US states do.
But that would diminish the power of the political class. What THEY think will become less important.
We can't have that.
The world as we know it would cease to exist.
Quote from: "Herman"
Quote from: "Bricktop"
In that respect, it has no distinction from other forms of government we abhor as dictatorships.
ALL modern forms of government are dictatorships.
I wish we used referenda the way some US states do.
Even if we had ballot initiatives, it would be dominated by prog money. And if the political class did not get the result they wanted, they would ignore the will of the people like Britain did with Brexit.
Quote from: "iron horse jockey"
Quote from: "Herman"
Quote from: "Bricktop"
In that respect, it has no distinction from other forms of government we abhor as dictatorships.
ALL modern forms of government are dictatorships.
I wish we used referenda the way some US states do.
Even if we had ballot initiatives, it would be dominated by prog money. And if the political class did not get the result they wanted, they would ignore the will of the people like Britain did with Brexit.
It's been almost three years since the Brexit vote was held and the British government still hasn't acted on the results of the vote. That is shameful.
Worse, some British politicians are calling for a new referendum!!!
If you don't get the result you want, just keep holding plebiscites until you do.
Quote from: "Bricktop"
If you don't get the result you want, just keep holding plebiscites until you do.
I heard the no side wants another referendum......they might get one.
If that happens, British democracy will never recover.
The other side will scream for centuries. Overturning a referendum purely because the political class could not act in the best interest of the nation and in accordance with the will of the people.
It will utterly destroy the validity of referendums forever.
If the political class in Britain never acts on the results of the referendum other than to get a new result, Britain is no better than some corrupt tin pot turd world hole.
It isn't.
Quote from: "Bricktop"
But, you like London's mayor. :laugh3:
He's a muslim!!!!!
Quote from: "Bricktop"
You and cc's kind of people.
Yeah, right.
I won't even fly on a muslim airline.
Quote from: "Bricktop"
I won't even fly on a muslim airline.
My husband flew on Qatar airlines and he said it was good.
Quote from: "Bricktop"
I won't even fly on a muslim airline.
The only airlines that land at tall buildings.
:swoon: