A forum for comments on FASD, sharing, life challenges, politics and other things that bother us. By GrampaBrian, FASD Advocate (AKA Brian Philcox)

Posts tagged ‘tax’

What’s fair in love, war & taxes?

When it comes to love, there are always imbalances. But a love affair that endures is one that shifts amicably back and forth creating a delicious dynamic that adds depth & spice to the relationship.

As for war, I have always believed that when you have to declare war you know you have lost the battle. Do I have to explain that? Our battles between nations or other parties are attempts to find accommodation that will result in positive relationships to the benefit of all. We’re not talking love matches here but finding ways we can live constructively while allowing others to flourish as well as we do. War may be the continuation of politics by other means as Karl Von Clausewitz once said but, in fact, it is wasted treasury and wasted lives. No one truly wins in war.

A progressive tax regime is supposed to provide the resources for a country to manage its responsibilities for the benefit of all its citizens. Currently, in Canada and the US, we see that poorer people pay proportionately more tax than the rich. Apparently, once you have accumulated a certain level of wealth, you will have the capacity to use the system to avoid taxes and retain a larger portion of your wealth. Those who live on the margins have no excess capital so they must live month-to-month and year-to-year without the opportunity to invest in wealth-producing projects.

There are those who say that increasing taxes on the rich will not solve the current debt problems of our nations. They say there is not enough money to garnered from the rich to offset the huge debt loads we appear to have. While this may be true, why do they expect the debt-load to be erased by milking the middle and lower income classes?

However, I still believe that the rich must pay a greater, more fair share of the tax burden. Yes, continue to root out ineffective and wasteful programs as offsets as well, but stop assuming that the lowly taxed rich are the jobs and wealth producers of our nations. No one has ever become rich by his or her own devices. You may become rich by being creative and energetic, but your great ideas will never come to fruition in a vacuum. You can’t make things or deliver services without workers who deserve to share in the profits generated.

So here’s my recommendation. First, as Jean Chretien once said as Finance Minister many years ago, “a buck is a buck is a buck!”. He meant that every dollar of income, from whatever source, should be taxed at the same rate in the progressive schedule. Second, let’s eliminate the myriad of deductions the rich can apply to their incomes so that the tax regime will become fair. This will simplify tax collection and reduce the bureaucratic cost of management. Further, the more you tax the rich the more they will find ways to employ their money in projects that will create jobs and multiply in our economies. After all, hoarded money doesn’t do anybody any good — it just makes the rich richer and the banks fatter.