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IS THIS GOVERNMENT THEFT?
There was a time when Canadian taxpayers did not have to send their
money in to the government until the end of the fiscal year. It was
theirs to bank and in doing so gain the advantage of earning interest
on it. This is what occurs today in America. However,in Canada,sometime
in the seventies, without any referendum or vote on it that I have been
able to determine they passed an act to take it off of your paycheck
every two weeks. This by the way was during Trudeau's time in office!
So you can thank him for this.
Now a lot of people saw this as a good thing as they never had to worry
about having that money on hand to remit to the income tax department.
However that was in the days when the average laborer was getting around
Three hundred dollars a month in wages. Most people do not see beyond
their own little life so the amount of interest they would have made
was not enough to scream about. But follow the step by step system of
today's wage and interest rate and see a different picture.
Now the tax system on a month to month bases is like a round robin, so
it is only the first three months that when this was implemented where
big companies and government did not get the full amount of interest.
After that it continued on a full-time bases.
From January to March the companies keep your tax money and get the
interest on it. Every three months they send it on to the tax department
and they get the interest on your money for the next nine months of the year.
But as it is a round robin so to speak it is ongoing for the full year.
So both parties have now benefited from your tax dollars that are not
due until March of the next year. For big companies who have over
2,000 employees that is a lot of interest. For a tax department who
is collecting for the millions of Canadians who work and pay taxes
we are looking at millions if not billions of dollars in interest over
the year, year after year. Since interest rates have fluctuated
between 3 to 71/2 percent over the last 30 years we can take a base
percentage of 5% on these tax dollars. At today's wages let's say the
average person makes from $3,000 to $5,000 a month. He is assessed 30%
of his wages every two weeks. That is $1,000 to $1,600 approximately
for the month all told. At the end of the three months the company has
earned 5% on 2000 x $1,000 dollars. And he gets that every 3 months. Of
course the banks don't pay 5% on only three months so you have to
divide that to approximately 31/3%. Still a hefty bit of cash. But don't
forget the Government who is now busy collecting its share of the action
for the next nine months. But if you remember that this works as a
round robin thing then they both are collecting for 12 months of the
year. Year in and year out.
Someone I talked to about this said that the government does not bank it.
How ridiculous! Of course they bank it. They want to make that interest.
But at all times remember that this is not legally the Governments money
until the end of the fiscal year, (unless they legislate it in as their
money as soon as they read this!). So they don't legally have a right
to that interest they are taking off of you. Do people like farmers and
self employed pay ahead of time? And neither is the interest being made
on your money part of your remittance to the government being allowed to
you.
Maybe big business has to pay taxes on the money it makes off of you
but does the government factor in that hidden interest on the tax's in
their bookkeeping account? I doubt it! All they legally have to do is
account for the actual taxes collected, which is on file at the tax
department via your tax returns.
How did they get this approved? How did they get big business to go
along with this? I know this! If I was a huge corporation and the
government came to me and told me that they wanted me to collect the
tax dollars for them, I would have said, "what's in it for me to do
your work for you! Why should I pay my bookkeepers to do your work
for you?" And if I were a big contributor to your party I'd be even
more incensed at the request. I might even threaten to take my business
elsewhere. But if you offered me a percent of the interest then I
would go along with that. Is that how it happened? It does not matter
if the small business did not want to do this as they have no more
say in things than you and I do, but not big multicorporations who
have thousands of offices and business across the country. They are not
in business to take a loss from anyone.