Canada joined World War 1 in 1914 and with the cost of sending troops and equipment overseas, the government introduced rationing for everyday items from building materials and gasoline, to food. The government also issued wartime savings bonds, raised import tariffs and levied new wartime taxes.
By 1916 the Government introduced a corporation tax and by 1917, as a ‘temporary measure’ to cover the costs of the war, the federal government introduced the Income Tax War Act, covering both personal and corporate income.
The Personal Income tax at that time amounted to around $20 on an annual married income of $3000, with married Canadians who had an income below $2000, or unmarried Canadians with an income below $1000 exempt from paying the tax. With a married couple earning $3000 and paying $20, that works out to be only .67% of their entire income going to income tax. That is a far cry from today's 17.77% on $50,000 income costing $8883 per year.
Income Tax is only the beginning of the tax we pay as Canadians as there is also PST (Provincial Sales Tax) and GST (Goods and Services Tax) equalling 11% in Saskatchewan on most goods and services people purchase throughout the year. After paying income tax on $50,000 we are left with $41,116 to pay for all our needs. If we spend every dime on taxable goods and services, it will cost us another $4500 approximately on tax, so our $50,000 income is now only $36,617. In other words, if you earn $50,000/year before tax, you will have to work over 557 hours just to pay tax owing. If you work a full-time job 40 hours per week, 52 weeks a year, that would equal 2080 hours of work per year and ¼ of that time is working to pay tax. Do these numbers tick you off? Because they should!
Yes, our taxes are to go to paying for our healthcare, education, roadways, etc. but at what point are we paying too much without knowing where our money really goes? We entrust our elected government officials to spend our money wisely yet health care is on the decline with overcrowded hospitals and expensive medications; roadways in Saskatchewan leave their mark on our vehicles with potholes and disrepair; our teachers no longer able to offer one-on-one assistance to students due to overcrowded classrooms, so where is our tax money going?
It is the responsibility of every Canadian to hold our governments accountable yet most don’t question the ‘system’. A tax system that was put in place ‘temporarily’ is now taking over 26% of our income yet we as Canadians sit back and just pay the bills. Maybe it is time to hold our government accountable, maybe it is time for the people to be allowed to vote on where our money goes instead of blindly trusting our government.
Our government wants to give themselves raises? Let’s vote on it. They want to send millions to another country? Let’s vote on it. It is time to stand up. It is our money; shouldn’t we get to say how it is spent?
Written by: Bobbi - Lynne McGarry
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