'One Big Tax' would be simpler for all

Jul 23, 2007 04:30 AM
Bob Wilson
Special to the Star

Does anyone know just how much tax they pay every year?

There is Federal Income Tax, Provincial Income Tax, Business or
Corporate Tax, Property Tax, Capital Gains Tax, GST, PST, HST,
Gasoline Tax, Excise Tax, entertainment tax, airport tax, health
services tax, EI, and goodness knows what other taxes.

They all add up and in the end we have no idea how much we have paid
in total, and to whom.

Of course there are also things like licence and registration fees,
but those are different. They are payment for a service provided or to
maintain control over certain items or services. They pay for certain
government services and regulate affairs but they are not really a
tax.

Some of the taxes are grossly unfair. For instance, property tax is
based on unrealized gains. Just because the assessment went up doesn't
mean the owner has more cash. It is a tax that bears no relationship
to the ability to pay.

In some instances there is tax on tax, such as sales tax on gas tax or
excise tax.

Sometimes there is even tax on tax on tax, such as liquor tax on sales
tax on excise tax when we buy a drink in a bar or restaurant.

Sometimes the tax is hidden. Sometimes it is right up front.

Wouldn't life be simpler if we just paid One Big Tax (OBT)?

Each year, each level of government would write a budget, subject to
review by our elected representatives, since that is their
responsibility.

Perhaps senior levels of government could review the budgets of the
lower orders, but that seems an unnecessary level of oversight.

All the budgets would go to a National Revenue Office, which would
collate them with a view to eliminating duplication of charges and set
a tax rate based on location. It would be different for Toronto, or
Huntsville, or Calgary or Sydney, N.S., but everyone in each
municipality or region would pay the same tax rate.

National Revenue would charge individuals and businesses, large and
small, OBT based on location and earnings, no matter what the source
of our income or profit.

It would be simple. Declare your income. No deductions of any kind for
anyone for anything. Pay the percentage indicated for your tax
bracket, and that's it.

The National Revenue Department would collect it all and dole it out
according to the approved budgets.

Just think. Governments and businesses could do away with all the
costs of administering PST, GST, EI, HST, GST rebates, OAS clawbacks
and all those other pesky taxes. Office expenses would be reduced,
staff could be smaller. It would be simplicity itself and billions of
dollars would be saved.

Best of all, finally taxpayers would know how much tax they are really
paying and who is responsible for it.

Sound too good to be true?

Well it probably would not be quite that easy, given equalization,
harmonization, duplication, duplicity, cronyism and just good old
political skulduggery, but it could be done, and we would all be
better off for it.

Here's to The One Big Tax.

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Bob Wilson is a retired naval officer.

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Yep, far too much.  Loan sharks, feudal loards wish they had it so good.
The US revolution against the British were taxed much less.

No one really knows the total list.

http://www.fraserinstitute.ca/shared/taxcalc.asp

The above site helps for averages.

Not really.  Property tax is based on mil rate and your homes value.  If the
whole city goes up an even 5% in home values, and your civic politicians
only raise taxes 2% then you would pay only 2% more.  It is the civic
increases that hurt here the most.

Over the years they have spun off franchise fees, water, sewer etc were all
included, are now broken out into utility bills.  Costing much more.  People
have to start voting for civic representatives that are not whimps like
Toronto, Vancouver and Calgary.

Tax on tax is the way it works.  You pay income taxes, then what is left
over pays for GST, PST, booze, cig, gas, electric etc...  That is tax on
tax.

Done at the corporate level too.  Take the recent trust fiasco.  Trust
income was taxed at who recieved the money.  Say a last dollar rate of 40%.
One tax.  The new rules, it will be taxed 31% at source and taxed again in
the owners hands at 40%, net yeild drops to 27.6% .  Now that is tax on tax.

Drinking and smoking, the reason they do not ban it is becuse it is 80% or
more tax. (total load)

It would.  But the government would not do it.

They play each group of people against each other as not to drum up a mass
resistance.  Say I tax smokers this week.  Non-smokers rejoice.  Next week
they tax SUVs, the smokers laugh as they don't have one.  Each then will not
unite for a revolt and revenues are increased.

Or lie, the GST was supposed to drop income tax rates and pay off the debt.
Income taxes have not been higher and the debt plus GST are still with us.
Give them more and they will inefficiently spend more.

People are stupid, we are all taxed too much.  And keep voting for the liar
turds that do it to us.  Robing our wealth.

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Don't steal, the government hates competition.