The Upcoming Class Warfare

Although, late this year, we finally have a Federal Budget for 2015, which was immediately labelled a political document. As if budgets were not a fiscal and political document when presented by the left. The highlights are pretty good as the government forecasted a balanced budget all the while giving tax breaks to small businesses, seniors and families. The government says: "Two-thirds of the benefits will go to low- and middle-income families," 

Already the opposition parties are promising to curtail or abolish some of the proposed tax reliefs. They lament that there is not enough expenditures to combat climate change or provide more services. Public sector Unions are fighting against changes in their lucrative sick-days benefits. They also protest against the proposed increase of the TFSA contribution to $10,000 per year. Their premise is that this program only benefits the rich. The fact is that under this program some 11 million Canadians had TFSAs with total assets nears $ 120 billion at the end of 2013

The PBO forecast that the popularity of the program may deprive future government of revenues $39.3 billion by 2080, and therefore maybe we should have a lifetime cap of $100,000. We lament the fact that Canadians do not save enough, yet when a government provides the opportunity to do so, the left opposes it. Remember that unlike the RRSP, any TFSA contribution is made with after tax money. You have already paid taxes, why should your savings be taxed again, this in effect is double taxation.. In reality what they do not like is that this program which is tax free will deprives them of revenues that they would use to continue their spending ways. The question is who should spend your money?  The government or you?

Beware; the next election will see an increase in class warfare. The Liberals and NDP, who by the way are being advised by Obama operatives, will portray themselves as the champions of the middle class. But who is the middle-class? The middle class is defined by Statistics Canada as a two person family earning $82,100 before tax. Trudeau defines middle-class as ($$44,701 and $89,401). So presumably any family making anything above the defined amounts would be considered rich and therefore would come under the hammer of more taxation by the left.

Furthermore, the left believes in a higher minimum wage of $15 – (NDP Alberta $17) What they always forget is the impact on small businesses and the job losses that will result in such a move. In effect a higher minimum wage always results in a negative impact on the low wage earner. Just like, Obama who believes that he was the first to address income inequality, the Liberals and  NDP in Canada ignore history. Marxism and other socialist policies have destroyed the economy of many countries. Many European countries are still reeling under the consequences of their entitlement polices. Income inequality, if it exists, should be addressed by policies which provide opportunities, not through hand-outs which never succeed to lift the poor from a life of dependence.

The redistribution of wealth is a disincentive for citizens to climb up the ladder; it continuously promotes dependence rather than independence. The proponents of class warfare and the politics of envy include Hillary Clinton the self-proclaimed ‘dirt poor’ who makes millions from book advances and speaking engagements, and of course Justin Trudeau who has access to a trust fund,.

It is always a good thing when a government puts more money in the pockets of taxpayers.. If a program deprives the government from additional revenues that may be squandered by political spending - so be it.  Average Canadians should feel good about the 2015 budget; unless they believe that the government is the best manager of their hard earned money. Beware of politicians baring gifts; they never pay for them – you do.