Showing posts with label income tax. Show all posts
Showing posts with label income tax. Show all posts

Saturday, 8 September 2012

Aliens Walk Among Us - They Are Called Bureaucrats

After many years of thought, I have come to the conclusion that government is only good at two things; regulation and collecting money. I know some of you are thinking they’re really good at spending money too but I think they spend money poorly but boy do they know how to find more of it and how to extract it from even the most reluctant of us.

Government has figured out how to tax everything and when all that tax money proved to be insufficient for what they were spending it on, they invented user fees for things our taxes had already bought and paid for. They created fees for permits, licenses and the documents they require us to have and they have built a bureaucracy to control it all.

Canada’s GDP is estimated at $1.74 trillion annually. User fees, income and capital gains taxes alone take more than $299 billion out of the economy (source: Canada Revenue Agency and Stats Canada). Add to that consumption taxes which include the federal Goods and Services Tax, provincial sales taxes, excise taxes, school taxes, municipal property taxes, provincial income taxes and my particular favourite, the Welcome Tax in Quebec. (Home buyers pay what is referred to as a welcome tax on the purchase of a home as a way of making them feel welcome in their new community.

Overall, all levels of government combined take approximately 50% of the income earned by Canadians in the form of taxes or user fees and that, my friends, is greed at a level that would make the guys from Enron drool and Bernie Madoff positively slap his forehead and ask himself, “Why didn’t I think of that?”

They use that money to provide services, many of which we never hear of or see. Why? Because they turn the money over to the bureaucracy and the bureaucracy is quite simply a world of its own. In fact, I actually believe that government bureaucrats are the direct descendants of a race of aliens who came to earth eons ago after their home planet became so weighted down by red tape and regulation, it imploded.

I also believe that politicians are the descendants of the cross breeding between the ancestors of those bureaucrats from another planet and human beings.

They look like us. They walk like us but they don’t think, talk or live like us. They have no soul. That is how we know that they are not from around here. They are like ants living in a colony. They each have assigned tasks and go about those tasks like robots and because of that single-minded focus they now control everything.

Bureaucrats exist to regulate and control Politicians exist to spend money. That is their only purpose in life. They were bred  by bureaucrats to feed the bureaucracy. Without the politicians, bureaucrats would have nothing to do and all that money they collect so industriously would sit in a big room somewhere collecting dust. They are like bees who collect pollen every day, it has to be used or sooner or later the hive drowns in it.

Initially, politicians weren’t very good at spending money. Some, in fact, were downright frugal which really tended to gum up the works so bureaucrats had to come up with additional ways to spend money and they did. They invented regulations and they found that it was good. This had the advantage of not only increasing cost but it also helped to teach their political offspring new ways to spend money. This allowed bureaucrats to find new ways to target the collection of money.

They have become so good at imposing regulation that nothing escapes them; nothing is too small or insignificant for some form of government control. They regulate everything.

They regulate traffic with signs instructing us to follow the rules: stop, no parking, no stopping, no turns, right turn only, left turn only, do not enter, no left turn, no right turn, yield, merge and my favourite, proceed with caution.

If it moves, they license it including; boats, cars, bikes, dogs, motorcycles and aircraft.  If it’s fun they require a permit be purchased. Bureaucrats are suspicious of fun and so charge citizens to hold parades, community sports events, festivals, outdoor concerts and to make a few bucks as buskers on our streets.

If it is stationary, they tax it and have developed property taxes, agricultural taxes and marketing boards, parking fees and fines for non compliance.

They have effectively squeezed the mob out of the distribution and control of cigarettes, booze and gambling and soon will have pushed them out of illegal drugs. The bureaucracy and their political offspring is considering ways to legalize drugs which will lead to a whole new group of regulations, fees and taxes. Soon, the mob will be reduced to holding garage and bake sales and no one, not even Francis Ford Coppola will want to make movies about them anymore.

If you buy it, you pay a consumption tax. If you sell it you pay income tax on the money you made over a certain amount. If you die, they tax the pennies on your eyes.

They regulate safety, health, transportation, communications, education, the environment, infrastructure development, hunting, fishing, professional and amateur sports and business. In fact, they regulate everything except credit card interest rates and gas prices. 

They impose costs on manufacturers with ridiculous labeling restrictions and delay new product development with endless assessments, reviews and licensing processes. The bureaucracy lives for process. It is their oxygen.

The list is endless and even as I write this, somewhere in Canada….perhaps in many somewheres….there are government bureaucrats developing, refining and considering new regulations and planning the number of new bureaucrats it will require to monitor and enforce those regulations.

The simple fact is that the single biggest industry in Canada now is government. When you add all governments together, government employees more people than any other industry. It touches more lives than any other industry including technology. In fact, government touches pretty much every Canadian’s life from birth to death and then, of course, they don’t want anything to do with you although in some jurisdictions you are still permitted to vote after you die .

And that, my friends is the real problem. Government is not an industry. It produces nothing and creates no wealth. It erodes it. Government takes wealth from its citizens and the more wealth it takes the more it threatens the prosperity of every individual and the nation as a whole.

I believe we should all contribute our fair share to provide the common services we need as a society. I even believe in a responsible social safety net but when government is taking half of the wealth generated by a people, it’s starting to cross over into Marie Antoinette territory and that creates unrest that didn’t end well for anybody, especially Marie and many of her friends.

In the United States, the situation is not much better as exemplified by the 22,000 income tax regulations that country's bureaucracy has developed and by the current presidential election campaign. Both candidates are offering government in one form or another as the solution to the problems our American friends are facing but just as it is in Canada, and every other country in the world, democratic and totalitarian alike; government is the problem.

How do I know this?

I ran this post by someone who works for government at a fairly high level and he told me that he agreed and wanted to work towards bringing about real change to government…….and he was prepared to hire as many people as necessary to make that happen. 

I could almost hear the mechanical voice inside his head  whispering over and over and over again , “this does not compute”.

© 2012 Maggie's Bear
all rights reserved
The content of this article is the sole property of Maggie's Bear but a link to it may be shared by those who think it may be of interest to others

Friday, 7 September 2012

Government Has Discovered The Organic ATM Machine.- We're Screwed!

I stumbled over an interesting tidbit yesterday. The Parliamentary Budget Officer released a report that shows the federal government is now raking in some $10 billion in user fees. It was a striking number that made me ask a simple question. 

For what?

Aren’t government user fees sort of the same things as having your own employees charge you for using the facilities and services for which you already paid and own? Where’s that money gone for Pete’s sake? It’s like having your kids charge you for the hug you want to give them and thought the new iPhones you bought them last week had earned you.

It was mildly annoying but I thought I’d let it go because I’m feeling pretty magnanimous this week and decided to cut the government a break but…..I couldn’t let it go and ended up doing a little research.

Guess what?

User fees have become a major windfall for governments at all levels. In fact, the combined amount of user fees charged by all levels of government in Canada is more than $60 billion. I will repeat that for you, my fellow gentle, organic ATM machines. Our governments are charging us $60 billion to use the services and facilities we paid for out of our tax money.

Municipal governments charge user fees to use ‘our’ sports facilities even though we paid to have them built and pay the salaries of those who operate them. They charge for permits that they require us to have and that’s an excellent racket if I ever saw one. Make it mandatory to get a permit and then charge to supply it. Only two organizatons could come up with an idea like that; the government and the mob.

They even charge to park in our parking lot at City Hall when we go down to interact with our municipal government. I’m thinking of requiring them to come to my home where I can park for free the next time they want to interact with me.

Provincial governments also charge user fees for things like parking at hospitals and provincial offices and copies of our records like birth certificates. They charge user fees to use the parks we paid to build and pay to maintain. Many schools now charge users fees for extracurricular activities that were once free and for specialized courses like French, art and music. Imagine that; charging a user fee to learn one of Canada’s official languages in a school.

In Quebec, where I live, the government actually charges a $2.50 fee if you show up at the license bureau to pay your registration in person rather than mailing in a check. Unbelievable; a user fee for the privilege of paying another user fee in person. I'm thinking that next year, I'll bury the money for my registration in the front yard and sent them an email treasure map where to find it.

Government, of course, justifies this by telling us that we must pay these fees if we want to benefit from and continue to enjoy these services and facilities. I think, however, that what we need is some fresh blood in government because I tend to believe that government has lost its sense of perspective at best and its collective mind at worst.

Let’s back up just a bit. We agreed to pay income tax, property tax and school tax to provide certain fundamental common services. We’ve even, reluctantly at times, agreed to increases in those taxes to offset the rise in the cost of living. Government, for its part, took that money and spent it. To be fair, some of it was used for its intended purposes but much of it went to bloated bureaucracies, extravagant facilities we didn’t need or ask for and, of course, entitlements that are very handy things to offer at election time.

Government further compounded the situation by managing to find the most complex and expensive method of doing anything while at the same time reducing the pool of tax payers by handing out tax breaks to political parties, charities, non-profit foundations and unions which pay no tax at all on the membership income they take in and use to support their political campaigning and activism.

This meant that government didn’t have enough money to do everything it was supposed to do so it introduced other taxes including: consumption taxes like the GST and provincial sales taxes, health taxes, excise taxes and capital gains tax among others. Of course, once that money started to flow, government came up with new things to spend it on.

The bureaucracies grew, the entitlements expanded and public sector compensation packages became a thing of beauty.

More money was needed, so after raising the taxes on sin products like cigarettes and booze, the government took over the mob’s old rackets and got into the Numbers Game with lotteries of all shapes and sizes. Of course, that necessitated even more administration so some governments expanded again and opened up casinos. 

In Quebec, where I live, there is a lavish casino that makes about 10% profits. Imagine, a casino that only made a gross profit of 10%. How is that possible when you are the only casino in the region? It’s possible because government knows as much about running a casino as it does about managing health care services in an efficient manner.

Now governments are charging us user fees for the very things all that tax money paid for and continues to pay to maintain. Somehow, this makes sense to government but it doesn’t to me. They seem to believe that we are nothing but organic ATM machines and to be very blunt, I don't much like where they insert their debit cards in order to make withdrawal. 

I think we’ve reached a stage where we should just send all of our money to government and live for free. Government can buy our food, pay our mortgages, and give us weekly spending allowances to use for clothes, gifts and entertainment. We will pay for nothing. Government will pay for it all. When we need a new car, we’ll just call the car department of the government, give them the style and colour we want and they will send one right over.

It will be less expensive than what we’re living with now. At least we won’t need all those bureaucrats and tax departments who collect the taxes, user fees and other income now. Of course, now that I think of it I realize that they won’t actually get laid off. They’ll just get transferred to new departments in the bureaucracies so maybe that idea won’t work either.

Perhaps we should just bend over and kiss our asses goodbye or in the alternative bend over a little farther stick our heads up our asses until we can’t breathe and just suffocate ourselves to death so that we don’t have to live with this inanity any longer.

Of course, government will probably have a user fee for that too.

© 2012 Maggie's Bear
all rights reserved
The content of this article is the sole property of Maggie's Bear but a link to it may be shared by those who think it may be of interest to others

Tuesday, 28 August 2012

Democracy! "Everybody Knows The Good Guys Lost"


Everybody knows that the boat is leaking,
everybody knows that the captain lied 
Everybody got this broken feeling, 
like their father or their dog just died 
-Leonard Cohen


Merriam-Webster’s defines democracy as:
a) Government by the people
b) a government in which the supreme power is vested in the people and exercised by them directly or indirectly through a system of representation usually involving periodically held free elections

The Oxford Dictionary defines democracy as:
a system of government by the whole population or all the eligible members of a state, typically through elected representatives

I see more posts, tweets and commentary on democracy than any other single topic. Everyone talks about it including politicians, the media, academics and every day people. Democracy is not a homogenous thing and it takes many forms. In fact, there are almost three dozen different forms of democracy currently in existence.

Some democracies use a first-past-the-post system of allocating representation. Canada and the United States are examples of this approach. Others, like Italy, Israel and Germany have representative democracies and allocate seats based on the percentage of votes received by each political party.

Some democracies, like Canada and Sweden, are constitutional monarchies while others like the United States and France are republics. Some democracies are actually totalitarian and a few are outright dictatorships which seems incongruous to our basic concept of democracy but which is true nonetheless.

One thing they all share in common, however, is that they are too easily corrupted by those who run for office.

Friday, 24 August 2012

The Redistribution Of Wealth

Canada is a nation that believes in equality and it has proven it by devoting decades to a bizarre concept of redistribution of wealth that borders on insanity. Through various transfer payments from the federal government, both national unity and fair distribution of wealth are meant to be improved across all provinces. The problem is that it hasn't worked.

One of the largest recipients of transfer payments is the province of Quebec. This year it will receive just over $7 billion in equalization payments plus an additional $10 billion in transfers for healthcare and other social programs. This represents 25% of Quebec's annual budget but despite this injection of federal money, the province still has a budget deficit. Over and above the transfer payments, the federal government also covers the cost of Old Age Security and Employment Insurance.

Despite this, there is still a significant resentment in Quebec directed towards the federal government specifically and the rest of Canada in general. It's clear that wealth redistribution has purchased neither cooperative federalism nor fiscal responsibility in la belle province.

It isn't merely Quebec, however. The Maritimes benefits from the Canadian idea of redistributing wealth and the uneven application of social programs. In the Maritimes, EI is almost a second job for some and is seen as necessary to allow people to continue in seasonal occupations that cannot sustain them independently over an entire year.

Nationally, the idea of transfer payments on the scale applied in Canada simply hasn't worked. It has penalized successful provinces while rewarding poor economic management in others. It is a solution that only politicians, looking to get elected, could develop.