Sunday, September 9, 2012

Tax Freedom Day?

I have thought it is simply ridiculous because the concept of Tax Freedom Day contradicts what the Fraser Institute has supported. This is how they calculate it. Divide an individual's income by annual work days. Then times by the number of days until the value equals that individual's tax amount. The number of days is the time of the year you work for the government. In that time you nothing but pay taxes. This is simply wrong. First, how can we live in that time if we nothing but pay taxes? I have never seen a Canadian die because all the income is used to pay taxes and he can't buy a piece of bread. We all receive some disposable income every paycheck. You may choose one-shot payment option, but we are not all that stupid. We choose installments. Second, even if you choose one shot payment option, you are still eligible for a lot of government services, for example, primary and secondary education, universal healthcare, non-tolling roads, etc. You must take that into account because you receive that from the government. According to the government, the Government of Canada is running primary deficit this year, too. It implies it actually return more to us. Therefore, our 'net' Tax Freedom Day is supposed to be in the past. Does it mean budget deficit is okay? No, that's what we owe to the future. We better not do that. However, the logical sense of the Tax Freedom Day necessarily leads us to some greatness in deficit spending. What a socialist Fraser Institute!

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