Taxed to the Max

(Aired on April 19, 2010)

I'm surprised at a recent report from the Fraser Institute which says we're paying 41.7% of our total income to taxes. Not surprised that almost half yours and my income goes to taxes. We've known that for a long time. Every time we turn around, the government hits us with a tax on something. Now what surprises me is that the figure isn't very much changed in the past 20 years. In 1981, taxes accounted for 40.8% of income. So while we've gone up a full percentage point in that time, I actually thought it would be more than that.

Every time we reach into our pockets, the government seems to be there first. It never occurred to me that the moths flying out of my pockets were some cruel government joke. And of course, soon the HST will take even more money from us. Governments are quick to defend taxes, suggesting that the money is needed to fund health care, education, you name it. But I don't think many of us are convinced that our tax dollars are being used to best advantage.

In the fiscal year ending March 2005, the government collected $198.4-billion in taxes and other revenues. That doesn't count money taken in by the provinces or municipalities. The largest single spending item was repayment on our national debt. Now that we've spent a lot of money trying to stimulate our economy in light of the downturn, I wonder how long it will be before the tax bite hits even further. The downturn will play a bigger role than it has already when it comes time to repay the money the feds used to try and keep the economy afloat.

If you think it's bad that almost half your income goes towards taxes, you probably are going to be even more disappointed in the years ahead as we try to repay an even bigger debt load. And here is our federal government telling us we're not putting enough away for our retirement years. How do they expect that to happen? If they'd give us back even a small percentage of the tax dollars they drain from us each year, think of how much we could salt away for our so-called golden years. The thought is mind-boggling.