Every time someone says they pay too much in taxes, I want to break open a budget document and go over each line item. (And I wonder, why do I have so few friends?) Then I would ask them, so what do you want to cut?
Healthcare? Hey, if you’re a 20-year-old who can’t remember the last time you saw a doctor, why not!
Education? If you’re a childless, cat-owning senior, then of course!
Policing? If you’re a proud member of the mafia, then cut away!
Infrastructure? If you’re a bicycle-riding hippie (like me), why not close the streets to cars completely!
Unless you fit into one of these groups, it’s no easy task to start cutting because most provincial and municipal taxes – the funding that affects our everyday lives the most – goes to these essential areas.
The biggest one is healthcare. It's legitimate to question why healthcare costs so much. Whether delivered privately or publicly, costs continue to escalate given our aging population. Unfortunately, humans want to live as long as possible with as little pain as possible! There is a never-ending demand for better healthcare technologies, drugs and specialists. Healthcare inflation constantly outpaces regular inflation because the most cutting-edge technologies are not mass produced like smartphones and all jurisdictions are competing for healthcare workers.
Education is the second biggest spending item for provincial governments. I know, why can’t kids learn to read on their own?! Unlike with healthcare, the drivers of education spending are a little more straight forward. Students require buildings to learn in, teachers to teach them, and the ability to go to a museum every now and then. When immigration spikes, like it has these past three years, the need for new schools becomes immediate. With construction costs 40% higher than before the pandemic, governments have no choice but to foot the bill to create more classrooms. To give you an idea of the scale, the conservative government of Alberta recently announced $8.6 billion in school construction funding.
I understand why people think we should spend less on infrastructure given its incredible cost. But a dollar not spent today will only lead to higher costs tomorrow. If we nickel and dime construction projects, the public will get what it pays for. This is not to say that some projects don’t occasionally become boondoggles, but these are typically unique large-scale projects. The cost of improving and maintaining things isn't cheap, as any person who owns a home knows.
I’m not as familiar with policing, but I don’t usually hear people say we need fewer police officers on the streets. The “defund the police” movement lasted in the U.S. until crime rates started to spike. Sadly, rising crime rates are an issue in most North American cities where poverty rates and homelessness continue to grow. If we don’t invest not only in policing, but in low-income housing, we can expect this trend to continue.
So what have you learned from this somewhat condescending leftist lecture? Taxes can be good because they pay for essential things that societies need to thrive. That’s not to say that efficiencies can’t be realized or that taxes can’t be lowered (like the carbon tax, to name one of the least popular). But having worked in the government sector most of my life, I’ve come to understand that finding “efficiencies” usually means cutting back on services. If the public is okay with this, then that’s a choice they make, but don’t be fooled by an Elon Musk-type who says he’s going to make government run better by eliminating “waste”.
When it comes to your hard-earned taxpayer's money, first and foremost, be hesitant to trust a billionaire.
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