Yeah I know, sounds silly. But lets have a look at the other options. First off, and lets be clear, we are a little over 1 trillion in debt. Yeah, sure, 610 billion net debt. My butt. Lets say you own a home worth 400k, you owe the bank, a 350k mortgage. So whats your net debt? Well, I'm sure the bank will tell you its 350k. Have a look at the financial statement issued by Fin Can, year ended Mar 2014. Its one trillion. Because of that, 28.5 billion is a govt expense, for interest. Not health care, not defence, not transfer payments, CPP or old age securrity, no, its a 28.5 billion off the top expense, and it can only get bigger. Presently, it has an average effective interest rate of 2.8%, now imagine interest rates climbing by 1.0%, then we will pay, another 10 billion on top of the 28.8.
Ok so what are our choices. Pay more taxes to write down the debt. Reduce spending. Maybe both. But I think it should be increase taxes. Why, because out government got voted in on the promise to lower takes, they were voted in several times, in fact. And we climbed up from 705 billion, So we sow what we reap. And lets start with corporations. And if we are going to cut spending, well, although I don't receive mail delivery to my home, I take exception to a government that tells us we can't afford the service. Really? Can we afford to send F18's around the world? Can we afford to give donations to other Countries, such as Ukraine? Can we afford to build access roads for oil and mining companies? Like why can we afford those things, but a direct service to Canadians, nope, can't afford that. Honestly.
The most recent tax change announcement by the Govt, amounted to this, your paycheque finally exceeded your expenses, although you owe on your MC, 3.7 times what you earn in a year, your interest payments on the card equate to 10.4% of your annual earnings. So what do you do, go to the bar, yell a round for the house, just so everyone will like you. Priceless.
Ok so what are our choices. Pay more taxes to write down the debt. Reduce spending. Maybe both. But I think it should be increase taxes. Why, because out government got voted in on the promise to lower takes, they were voted in several times, in fact. And we climbed up from 705 billion, So we sow what we reap. And lets start with corporations. And if we are going to cut spending, well, although I don't receive mail delivery to my home, I take exception to a government that tells us we can't afford the service. Really? Can we afford to send F18's around the world? Can we afford to give donations to other Countries, such as Ukraine? Can we afford to build access roads for oil and mining companies? Like why can we afford those things, but a direct service to Canadians, nope, can't afford that. Honestly.
The most recent tax change announcement by the Govt, amounted to this, your paycheque finally exceeded your expenses, although you owe on your MC, 3.7 times what you earn in a year, your interest payments on the card equate to 10.4% of your annual earnings. So what do you do, go to the bar, yell a round for the house, just so everyone will like you. Priceless.
