Why are taxes so high in Canada?

Question

Canada Revenue charges about 40% of my salary and I don't quite see where all this money goes. Have you ever analysed the quality of health care..or easily enough...if you drive around Toronto you will see that asphalt is not always there...and yes..the city is very dirty!

Also, why are there schools campaigning to raise money? Isn't 40% of our salaries sufficient to provide for the "public" institutions?

Answer 1

The City of Toronto collects separate revenues for the items you note, and the school boards collect their own revenues as well.

The money your employer takes off your paycheque goes to the federal government for CPP (which WILL be there for us young folks - they've fixed it), EI, and income taxes for both the federal and provincial governments. Also, (assuming Ontario), there is a health tax that goes to to Province of Ontario.

As for our health care system, we have a good health care system, and unlike in the US, we don't see people working just so they can keep their medical insurance benefits, or unable to get a job because their family has such poor health that their employer doesn't want to pay the premiums. Sure, it isn't perfect, but while people here still do sometimes go bankrupt because of health problems, it isn't usually the hospital bills themselves they are paying for that cause it.

As for the "why" and "how" our taxes are as high as they are, well, the taxes were legislated into existence by our Federal government (Parliament and the Senate), the Provincial Legislature, and the municipal government.

Governments always cost more to run than private institutions because while governments do actually take money in, and can make money for some things (fishing licenses, Statistics from Statistics Canada, recreation facility fees) they also administer benefit programs that send money back into the community. It costs money to run these programs, and ensure that the money goes to those who are qualified, and they programs are not always revenue generating. For example - repairing roads is an ongoing expense of municipalities, but you don't get charged a special levy if the city decides to fix your road. Running social assistance programs is another expense, that is vital to those that are in need, and won't generate any sort of direct revenue back into the program itself.

Your best place to complain would be your elected officials. Your best place to make a change would be to run for office yourself , if you've got good ideas that is.

Answer 2

I live in the U.S. but used to live in Canada so I have some appreciation for the differences in the tax rates. It depends in which province you live in. Ontario has higher taxes than does Alberta but is lower than Quebec. I live in California and it is very expensive to renew your vehicle registration compared to anywhere in Canada. When I lived in Canada I paid a flat fee around 30 dollars or so a year. I paid 670 dollars to register my car when I first moved to California and I have to renew it every year. The amount is based on the value of your vehicle, its never a flat fee. This is a tax.
So while taxes in Canada may be higher, taxes in the U.S. can come in the form of "user fees" so you don't recognize them as taxes. Seriously, universal healthcare is worth it.
Also I once lived in Toronto and the streets always sucked there. I think winter temperatures are in part to blame, but there's also 5 million people driving around too.
Lastly, I disagree with the comment that a government provided service always costs more or is more wasteful than a private sector equivalent. It can be but private sector services are motivated primarily by profit and can be just as inefficient as the worst government run services.

Answer 3

Cash crunched Government needs money for social welfare projects - senior citizens, education, infrastructure development, health system and so on. The Canadian Government provides interest free loans to university education, as you might know. All these requires money and that money comes through T - A - X.

Answer 4

Because in Canada people do not pay for there health care, but as you probably know it's very diferent in the U.S.

Answer 5

To pay for that universal health care.