In a land where greed beats need.

The last time Canada took a systematic look into its tax system was at the instigation of a Prairie populist, Prime Minister John Diefenbaker. The royal commission headed by Bay Street accountant Kenneth Carter was famous for determining “A buck is a buck.” Here we are more than 50 years later and no finance minister of any stripe seems to have understood what Carter meant.

Yet it was so simple. All Carter really said was that no matter how a dollar was earned, it should be treated as a dollar. What Canada has instead is a complex taxation system wherein a dollar is taxed according to its origin and how it is gained.

Where the dollar came from is at the centre of an unfair tax system where the wage earner remains the easiest target. The system encourages the vulgar accumulation of wealth for the already rich. It encourages perquisites for the oligarchs of business. It benefits the rich investor over the small investor. It drives the elderly who are now living longer into poverty.

And we might never know if finance minister Bill Morneau was trying to help the middle class or seeking to benefit his fellow millionaires last year. The Conservatives threw accusations, barbs and challenges in the path of his tax reform proposals as he showed his inexperience and naïveté in his portfolio. And instead of helping, the prime minister just pushed him to the side.

Both Morneau and his prime minister spend a lot of their time saying that they want to do more for the middle class. If there were more results for the middle class instead of the steadily increasing profits for the already rich, we would all be better off.

Bill Morneau has backed so far away from the grandiose reforms he presented early last year, he has an even longer way back to our trust.

In Canada, where we put our trust in a self-filed income tax system, it seems amazing that we should have a tax system so laden with exceptions. The basic fact that the rich have tax accountants and the rest of us do our best, puts our best at a disadvantage.

It would pay for both the prime minister and his finance minister to dig out and read what Kenneth Carter said over a half century ago. A loonie is still just a buck but inflation has sure eaten into its buying power.

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Copyright 2018 © Peter Lowry

Complaints, comments, criticisms and compliments can be sent to  peter@lowry.me

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