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Letter to the Editor: Taxes and reduced spending

A letter to the editor from A.W. Allan
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It seems we have a lot of time on our hands these days due to social distancing and isolation. One thing it allows us to do is think. Perhaps it’s time to ask what our elected officials are really doing for us.

Lately I’ve heard talk about the financial difficulties some Canadians are having. We’ve heard reports about some folks in arrears on their mortgages; the demand for food banks is increasing; and many are struggling to just make ends meet.

While government at every level is quick to provide statistics, one number seems obviously absent: the contribution government makes to tougher financial times for Canadians. It seems no matter what we do government is first in line to reduce our financial resources.

Canadians on average pay 42.5% of their income on some kind of government tax.

It begins with income tax deducted before the worker sees a dime, then the taxes on taxed earnings: GST, PST, and environmental surcharges, fuel tax, carbon tax (plus GST) along with import taxes and other surcharges.  And we must not forget property taxes.  All these taxes while politicians assure us they represent and are fighting for us.

Looking at Canada’s annual rate of inflation over the past ten years we’ve averaged around 1.57%. And yet, when we look at increases in property taxes, water rates, waste removal, and now the carbon tax it seems our governments find it quite easy to exceed the rate of inflation. Many Canadians have not seen wage increases, but government continues to reach into their pockets.

Canadians need to speak up and address the real issues that are cutting into their financial resources. We have a Prime Minister assuring us a carbon tax would be revenue neutral, although he didn’t tell us it would be subject to GST. The Saskatchewan Government has turned to picking pockets too. Expansion of the PST from five to six percent has taken a chunk out of disposal income. Then there is the multiple taxing of goods when you have to pay sales tax on used vehicles. 

Oh, and let’s not forget municipalities. They too have their way of reaching into our pockets. 

In Moose Jaw I guess we’ll see brown grass again this year. People find it expensive to water grass, which includes a sewer charge for every litre put on the grass or garden. And I guess I should mention the six percent increase in water utility fees and a five percent hike in sewer rates. We’re told it only accounts for about six dollars a month. That’s not just spare change if you’re on a fixed income. Remember when our garbage collection was reduced and collection fees went up nine percent. 

Our City Council likes to spend money, but I wonder if it understands how to spend it efficiently?

Tax arrears on Moose Jaw properties for 2018 were over three times as much as they were in 2013. City Council needs to ask why. Perhaps folks are trying to feed their families, keep them warm and put a roof over their heads.

Some council members want to ring bells downtown again, while stopping people from growing vegetables along their back ally. Hello, growing vegetables in the ally helps keep weeds down and puts food on the table. However, perhaps ringing bells downtown might wake up some city councillors to the real needs in our city.

With governments willingly increasing their fees, perhaps we should not question when workers ask for raises. After all, they’re just trying to feed their families, pay utilities, keep up with increasing taxes, and hopefully put something away for retirement.

What we need at all levels of government is affordable taxation and responsible budgeting and spending. It’s a novel idea, but it might just reduce the financial burden on Canadians and perhaps reduce the demand on the food banks and leave some finances for families to enjoy.

Taxes fund important government services. However, we shouldn’t simply assume that higher taxes provide better government services. 

While we have time to think, let’s remember we’re supposed to have municipal and provincial elections this fall.  Let’s ask ourselves if we’re really getting value for our tax dollars, or if governments need to become fiscally responsible.  Perhaps it’s time to elect effective leaders and not just politicians.

-- A. W. Allan, Moose Jaw

The views and opinions expressed in this article are those of the author, and do not necessarily reflect the position of this publication.  

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