July 2001
Editor's Notes
June 29 this year marks Tax Freedom Day for 2001. If that leaves you feeling all celebratory, well and good. I must admit, though, the date leaves me a bit weary.
June 29 is late in the year. 2001 is literally half over, and finally, finally, if I had done nothing but pay taxes with every penny I earned up to this point in 2001, I would have done my share of feeding government's immense maw for another year. Of course we get things for the money we pay out. Yes, my taxes do fund the roads I drive on, my bi-annual doctor's visit, my enjoyment of a national park on my summer vacation. Yes, these services are important, but there is a lot more going on in my life–in all of our lives–than partaking of government services. If I was left with a bit more of my own money to spend, I could spend on, and thus support, more of those productive activities, too.
You might be saying to yourselves, "You can't be right. What about those tax cuts governments of all levels have been boasting about?" When you think about it, have you seen much of a difference in your take-home pay, despite all the rhetoric? In this issue of Fraser Forum, apart from supplying you with all the detailed calculations behind Tax Freedom Day, Institute Senior Research Economist Joel Emes takes a closer look at CPP and QPP contributions. His results are startling: those contributions very nearly make up for the cuts to our personal income taxes. No wonder we see little difference on our pay stubs. We may pay Peter less, but Paul's hand is way out.
On the way to work this morning I passed an old car cluttered with bumper stickers. Among the few that celebrated organically-grown foods and one that said, "I'm in no hurry. I'm on my way to work" was one with a very succinct message: "Live long–travel light." Our governments could learn something from that sentiment. There is only so much taxation people will accept before they begin to take action to avoid it. Governments may want us to believe that they have slashed our tax burden. A late June Tax Freedom Day should give them the message that they still have a lot more cutting to do.
—Kristin McCahon
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