Dateline: 4/16/99

One of my favorite bumper stickers of a few years ago was the one protesting the Goods and Services Tax introduced by the Mulroney government. It featured Pierre Trudeau's favorite digit with the slogan "Tax This, Brian!" That sentiment seems to have grown considerably if a new poll commissioned by the National Post is any indicator.

The survey, conducted by COMPAS Inc., shows that 85% of Canadians are "upset" by the tax bite they suffer. Fully 48% are "very upset" or "extremely upset", the rest being "somewhat upset". Moreover, 80% said their personal quality of life had deteriorated as a result of high taxation, 87% said it cut into their personal spending money, and 73% said it affected the amount they are able to save for retirement.

This is not astonishing news if you compare Canada's taxation levels to that of the United States. As I pointed out in this space a year ago, "Canada has an extremely punitive tax system. Make over $60,000 and, incredibly, you’re considered rich in this country!"

At that income level, the average marginal tax rate is over 50%. (It may be lower in some provinces and higher in others.) In the U.S. on the other hand, the top marginal tax rate is 39.6% and that doesn't kick in until your income is $256,000. 40% is an intermediate tax level in Canada and kicks in at $29,500. Think of it - a Canadian wage earner making $30,000 a year pays the same tax rate as an American making a quarter million dollars a year. And that's U.S. dollars - the equivalent of $375,000 Canadian. No wonder Canadians are ticked off!

The Post will publish more of its survey results Friday and Saturday, with a special 12 page supplement on the Weekend. It has been leading up to this for a while with a series of articles on our incredible tax burden. Columnist Jonathon Chevreau has been prominent in bringing this issue to the fore. Here are some of the articles he's written on the subject.

• February 20, 1999: Ottawa's list of potential tax cuts a cruel carrot - Chevreau assails the government's budget. The first article in which he calls for readers to email him their views.
• February 27, 1999: Is tax rage taking hold? - Chevreau is getting lots of response from readers on his call for them to voice their outrage.
• March 5, 1999: Tax protests fall on deaf ears - many taxpayers are copying their emails to the Post to Finance Minister Martin, but Chevreau doubts he is listening.
• March 6, 1999: Letters of enraged taxpayers from the e-mail bag - more reader response
• March 12, 1999: In their own words: Angry Canadians feel forced to flee - Chevreau goes over some of the more than 700 emails he received from angry taxpayers
• March 13, 1999: Ottawa needs dose of homeowner's reality - calls for the government to show the same fiscal responsibility homeowners do in paying down their debts and living within their means.
• March 23, 1999: Taxed to death, retire at death - about the inability of many people to retire at all
• March 27, 1999: Liberal offers tax solutions - about Liberal MP Dennis Mills proposal for a flat tax
• April 10, 1999: The time of the citizen is coming - about the need for government to be responsive to its customers (us!)

Chevreau has done a dandy job of fomenting tax rage and getting people to speak out with his columns. Until such time as Canadians let our politicians know in no uncertain terms that we are fed up with having our pockets picked, they'll continue doing it. E-mail your MP. Write a letter to your local newspaper. Speak up for the right to keep your hard-earned income.

As the National Post put it in an editorial of March 3, "Rage on, Canadians. Do not go gentle into that tax office"

Other Links of Interest

Taxes exceed total for food, shelter, clothing - article in the National Post by Luiza Chwialkowska reviews new Fraser Institute book Tax Facts 11

Canadian Taxpayer's Federation - Canada's leading taxpayers advocacy group, ably led by Walter Robinson.

Fraser Institute - Canada's leading economic think tank publishes Tax Facts bi-annually.

National Citizens Coalition - Watchdog group on government spending regularly assails fat MP pensions and government waste. Their motto - more freedom through less government.

Abusive Practices of Revenue Canada - Tells how individuals being audited or charged under the Income Tax Act can defend themselves.

Up the Auditor - A recent article from these pages tells how you can throw a Revenue Canada auditor a loop with a few well chosen questions.

Dennis Mills - Liberal MP Dennis Mills calls for a complete restructuring of Canada's tax regime around a flat tax.

Sophisticated Slavery - An article I wrote for these pages last year argues that we are indentured servants working for the government.

Taxation is Theft, Q.E.D. - An article I wrote for a libertarian newsletter in 1996 argues that, philosophically, there is no difference between Revenue Canada and the common mugger.

Rage On With Jonathon Chevreau - Jonathon Chevreau's Tax Rage forum at the National Post. This is linked as a read file. To add your own comments go to National Post Forums and register.

Investing: Canada Bulletin Boards - Ticked off by high taxes? Let us know on our Bulletin Board!

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