Friday, September 8, 2017

How much can the rural Canadian take?





Alberta Farm Express Article

Financial Post Article

Western Producer Article

It seems that yet again, there are upcoming changes that are not supposed to be aimed at the working class that are going to impact the bottom line of many throughout the country.  It is getting to the point where we are going to be working until October to pay the government instead of June with so many taxes on everything.

The move to BC from Alberta has definitely brought with it an unpleasant shock of how the PST really affects the bottom line of your budget.  We knew there was tax when we moved here, it's not that we didn't, but when you go to pick up $650 worth of windows and your bill is $728 of your after income tax paid earnings, it starts to feel like you are spinning your wheels to go nowhere.  5% GST is first and then PST of 7%.  

When we look at what the Liberal government is proposing, as one of the people who will definitely be affected by the changes, I am a little tired of being nickel and dimed to death.  Oh wait, I am a lot tired and it's Loonie-d and Toonie-d to death.  The Liberal government has yet to define what they perceive is the "middle class".  Is middle class everyone just above the poverty line to $60,000/year or does it actually consider the actual Median total income by family in Canada in 2015 was $80,940?  

With all of the changes thrown at us both from an agricultural perspective and a business perspective, plus minimum wage changes coming up in both BC and Alberta, Bill 6 in Alberta, NDP governments in both provinces looking to tax the middle and upper to support the lower, it feels damn near impossible to get ahead.  The impact all of these changes will have on our rural communities could be huge.  Will the businesses be able to stay viable?  Will farmers give up and just sell their land to the big corporations?  Will there be any time or money left at the end of the day to enjoy what we all are supposedly working toward?

We worked our butts off to get to where we are today.  Prior to moving we were in the 35-45 age group with dual income and a sizable income tax bill every year.  Yet, every year we have paid it.  Mostly without complaint.  The reason we don't complain is because we believe in infrastructure advancements, health care benefits, education for the masses.  What we don't believe in is lining politicians pockets with our hard-earned money.  We also don't believe that the hard-working achievers of the world need to support those who choose to sit on their asses instead of getting out there and going to work.  Do I think there are those who legitimately need support as they are unable to work?  Absolutely.  Do I think that there are people on assistance and EI that should be working, you bet I do.  I love the idea of socialism and taking care of each other.  It is a fantastic ideal.  But shouldn't those of us who work hard to make a better living for ourselves be left with enough money at the end of the day to look after our own first?  

According to a Fraser Institute report done in 2014, the average family's tax bill has risen by 1832% since 1961.  We start with income tax - federal and provincial (pre-deduction if there is any left after the government continues to make changes to the system), the average of which is 42% according to a National Post article from 2014 (probably higher now).  So, we are down to $0.58/dollar earned.  Now we have GST at 5%, PST at 5 - 8% in various provinces, property taxes, fuel taxes, import taxes, land transfer taxes and of course sin taxes.  What does that leave to use for groceries, clothing and shelter?  

This begs the question - at the end of the day, what do I get for my tax dollars?  Military?  Well, I guess it's nice that we can send Peace Keepers to other locations in the world with less than stellar equipment (until we buy new planes from Boeing so we can help them out with tax dollars for the umpeenth time), but we don't take care of our veterans when they get home.  Education?  Well, public education is subsidized so that bill is only going to be a couple hundred dollars for our one child in school this year, however when looking at University courses and costs for a 4 year undergrad program, we are looking at about $80,000 out of pocket.  Infrastructure?  Well, BC & Alberta have pretty good highways, so I guess that's good, though I would love for the construction fairies to do all their work when it doesn't inconvenience me, kidding.  However, when we look at the wildfire fighting crapshow going on in BC right now, I am not so sure that the infrastructure dollars are that well spent.  Health care?  This one grinds me.  As a relatively healthy family of four, we don't see the doctor a lot, thank goodness.  We do have a few monthly prescriptions which cost us around $150/mth and another $150 for BC Care (provincial health care), which is $3600 minimum a year out of our pocket, plus the $75/bi-weekly that we pay for my husband's crappy benefit plan at work, so that is another $1800.  Despite the fact that we pour so much of our tax dollar into the health care system, a relatively healthy family is still paying $5400/year for health care services.  (This does not include the cost of physiotherapy, chiropractic, massage, etc.)  Our homeless shelters are overflowing, there is still an unacceptable level of poverty in our country given how much money we send elsewhere to third-world countries in support, our veterans are left high and dry, our seniors are treated like animals in assisted living facilities that aren't staffed properly or fit for anyone, let alone someone who has spent their time contributing to our great nation.

It is no wonder that everyone feels pinched and is utilizing the options available to them through succession planning on farms, income splitting through businesses and every other possible solution as we are already paying an incredible amount of tax and I really don't think we are getting much bang for our buck.  Do I think that the millionaires need to pay their fair share?  Yes, I do.  Do I think that we need to look out for each other and take care of our neighbours, yes I do.  Do I think that the tax money could be spent better?  Absolutely.  

Our family is what I would call the upper-middle class from an income perspective and we worked damn hard to be here.  With all of the taxes calculated in, I would say that in our years as tax payers we have contributed more than a million dollars in taxes to the system (probably more, but I can't bear to do the calculation).  I can't say that I feel like that million dollars was well spent and I certainly don't want to have to donate more of our hard earned money to the various levels of government so that they can mismanage it.  Imagine if we had that money at our disposal to invest it into the economy and grow it and make our communities a better place.  

It is time to get educated, write letters, make noise.  I am concerned about how these changes will affect my family, but more importantly, I am concerned about how it will affect rural communities throughout the country which is a demographic that no one in the current provincial (BC & Alberta specifically as my knowledge of the others is not first hand) and federal governments seem to give a damn about.

1 comment:

  1. I appreciate this! When our Prime Minister has always lived off public money...stands to reason that he has no understanding of the private sector. It makes me disheartened to watch the public's money being frivolously spent. Thank i for sharing

    ReplyDelete