A brand new report found that most Canadians are getting a great deal from public spending, and receiving more than they pay in taxes. The implication is that “tax cuts” are a short term high but ultimately we’re the losers.
Here are some facts that may challenge our notions about taxes:
- A typical Cdn family uses public services that would total nearly 1/2 their total family income if they paid for them directly
- Each Canadian uses approximately $17,000 worth of public services annually
- Households with net incomes below $110,000 would almost all have been better off if the gst had *not* been reduced, and the funds instead transferred to local governments (to support schools, for example), whereas households exceeding $200,000 gain an average of $200 annually by the gst cut.
So when we hear about “tax cuts” we need to ask ourselves: Who wins? and Who loses? If it’s a federal tax cut, it’s likely lower income groups (child payments, employment insurance, seniors payments). If it’s a provincial tax cut, it’s likely middle-income earners (school, health, roads).
Readers, what do you think? Does this surprise you? And are you using more than you are putting in, right now? (stage of life plays into this).