Tuesday, January 1, 2019

My 2019 goal: Making Canada competitive again

Would you work harder, or would you work at all if you can keep 30% of what you make? Or would you say ‘scr.. it’ and retire or move to a place where you can keep more of your hard earned money? In Ontario or Quebec, you pay on the top part of your income more than 54% income taxes. Alberta’s highest rate is 48% up from 39% under the previous conservative government.  In Ontario sales taxes are another 13% and in Quebec they are 15%. Alberta’s is 5%.  Then there are airport taxes, gasoline taxes, property taxes and carbon taxes build into your utility bills. Ad that up and an average Canadian family works until June 10th (in Alberta until May 22) for Big Government, while those in higher brackets can keep just 30% of every dollar they make.

You better don’t put money in the bank or in GICs because that is similarly taxed. The top bracket is paying indeed close to 70% of what they make!  And, thanks to the Donald, our corporate tax rates are no-longer competitive with that in the U.S. either!  If you live in Florida or Texas, you don’t pay income taxes other than federal!  Combine that with the cost of living in Canada where everything is much more expensive than in the U.S. or even in Europe and you can easily see why we are no-longer competitive.

Strangely, and I mean this ironically, U.S. states with the lowest tax rates have most prosperous populations. That used to be true for Alberta as well but the deficits and tax increases under Notley’s NDP government have rapidly changed that song. Trudeau may be amazed that we no longer are competitive, driving the better paid professionals out of this country along with businesses including innovative start-ups. And the guy still thinks we have a competitive edge – Mr. Delusional!  

You may remember the high tax rates in Europe; the Netherlands in the 1990s had a 72% top tax rate. That has changed and today it is 52%! Oops, income taxes in many Canadian provinces are higher! Have you ever bought a flight in Europe or the U.S. – how does that compare with the tax riddled air fares in Canada?  

No wonder we are so concerned about building a cannabis-climate change industry. After all, everything else, including the automotive and airplane construction and engineering has been effectively killed off. Yes, Canada is a great country to live in, but not if you want to save and build up money for your retirement out of the 30% that remains of your top income. In the meantime, Morneau can’t wait to close the ‘loopholes’ for tax cheating small business. Wow, our economy is booming!  Yes, we still are in construction mode, until that is gone as well. In the meantime, Young Justin is running $20 billion annual deficits. 

Canada, please, wake up out of your delusions because you are throwing your prosperity away and you serve your government and its sycophants rather than that your government serves you. You know, the state will take care of you (for some time) from cradle to grave – but for a very high price! What other government goodies do you want in return for even higher taxes? We can do that! 90% for us, the politicians, and 10% for you!  

2019 is a year of important elections, including that of the Federal government. Throw the Liberals out! Demand that the next government trims the bureaucratic fat; balances the budget and lower taxes. Demand less not ever-more government interference in your life. And don’t vote-split with right wing fringe groups. That means you may have to hold your nose and vote for that guy without a lot of charisma – vote conservative. Once elected, stay on top of them – because in the end politicians are politicians who flourish if you let them build their maze of rules and bureaucracy. Demand that government gets out of your house!

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