Report from Parliament's Hill - June 19th, 2008

By Prince George - Peace River M.P. Jay Hill

Tax Freedom Day Arrives Earlier Once Again

Happy Tax Freedom Day!  If you missed it, that’s likely because you weren’t expecting the day to arrive so soon.  Last Saturday, June 14th marked the national average for Tax Freedom Day. Here in British Columbia it arrived even earlier on June 13th.

Calculated by the Fraser Institute, an independent Canadian research and educational organization, Tax Freedom Day symbolically marks the day when Canadians have paid their total tax bill to all levels of government – federal, provincial and municipal. 

This year’s Tax Freedom Day is significant because, arriving four days earlier than last year, it’s the earliest the benchmark has been observed in recent memory.  In all, Tax Freedom Day falls a full 11 DAYS EARLIER than when our Conservative Government took office.

In 2005, the former Liberal government’s last year in office, Canada registered its latest Tax Freedom Day in history!  Back then, it fell on June 25th, meaning every dollar earned before that day was required to pay taxes owing.

Since those Liberal days, successive Conservative federal budgets in 2006, 2007 and 2008, along with the October 2007 Economic Statement, have delivered $200-billion in tax cuts to individuals and businesses and have pushed Tax Freedom Day earlier and earlier each year.

Among other factors, the Fraser Institute noted that the cut in the GST from 7% to 5% helped reduce Canadians’ tax bill.  In addition, our Government has implemented a permanent reduction in the lowest personal income tax rate; introduced income splitting for pensioners; dedicated all interest savings from reducing the federal debt to personal income tax reductions through the Tax Back Guarantee; and, introduced the $2,000 child tax credit.

So what does this mean in real monetary terms?  A typical working family in Canada is better off today by almost $3,500 per year than when our Government was sworn into office.

And yet, incredibly, the federal Liberals and the New Democratic Party are pushing to restore old taxes and/or create new ones.  Liberal Leader Stéphane Dion has stated he would reverse the Conservative GST cut.  Meanwhile, he’s facing opposition within his own party on his proposal to place a new kind of tax that would lead to higher costs for home heating fuel and other essentials.

Resistance to this proposal transcends politics and even concern over the Environment.  Canada MUST manage its greenhouse gas emissions through a variety of innovative and responsible avenues … but it must NOT be done on the backs of Canadians trying to stay warm during a cold Canadian winter, especially pensioners and so many others trying to survive on a fixed income!

Regardless of the progress made in reducing Canadians’ tax bill, as demonstrated by the early arrival of Tax Freedom Day, Finance Minister Jim Flaherty has firmly stated that he believes Canadians still pay too much tax.  That’s why our Government remains committed to the responsible management of the nation’s finances in order to keep spending and taxation under control.

Canadians work hard to build a better future for themselves and their families … they deserve a government that will help them to enjoy the fruits of their labour.

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