CANADA AND THE OVERTAXED CITIZEN

Canada and the overtaxed citizen by Maj (ret'd) CORNELIU. CHISU, CD, PMSC, FEC, CET, P. Eng. Former Member of Parliament Pickering-Scarborough East In a turbulent world with uncertain economic predictions and the rising prices of the basic needs for a citizen to live in peace and without concerns, the future looks dark.

As it is most relevant for the entire country we will concentrate on the Province of Ontario Canadian resident to see how they fill with their future economic prospect. According to a new poll, 73 per cent of Ontarians feel that the average family is over-taxed. This result should not come as a surprise. A 2022 study published by the Fraser Institute found that the average Ontario family (consisting of two or more people) paid 44 per cent of its income in taxes (including income taxes, sales taxes, etc.). Unfortunately, relief is nowhere in sight. Although both the provincial and federal governments tabled their budgets for the upcoming fiscal year, there were no serious discussion about tax reductions. In fact, the Ford government, has walked back promises it made on the campaign trail in 2018 when then-candidate Ford championed lower taxes, stating that the government was perhaps "the worst place you can hand your money over." But as premier, Ford has done little to nothing to reduce taxes for Ontario families. The same poll, conducted by Leger and commissioned by the Fraser Institute, found that 80 per cent of Ontarians believe the average family should pay 40 per cent or less of its income in total taxes. And more than half of respondents (55 per cent) in the province believe the average family should pay 25 per cent or less of its income. (Remember, the average Ontarian family currently pays more than 40 per cent of its income on taxes.) Clearly, there's incongruity between what Ontarians believe the average family should pay in total taxes versus what the average Ontarian family actually pays. Ontarians want tax reductions, but their governments are not listening. Finally, according to the poll, Ontarians are not thrilled with the quality of services (health care, education, police, roads, etc.) they receive in exchange for their tax dollars. Four in 10 (40 per cent) Ontarians believe they get poor or very poor value from government services. Only 19 per cent of Ontarians feel they receive good or great value from the services their tax dollars finance. And roughly three in 10 (31 per cent) said they receive satisfactory value. When Ontarians voice their opinions on taxes in the province, the results are clear. They want lower taxes, and they aren't over the moon about the quality of services provided by all levels of government. In other words, Ontarian families feel they're over-taxed and governments are under-delivering, and the Ford and Trudeau governments should pay attention. Will they? There is also another fact: Canadians already pay roughly $720 a year for climate-related damages. Those costs will keep rising (to around $2,000 a year by 2050). The question arise; is this a realistic approach or it is an additional tax grab for governments futuristic projects? For example the latest federal budget focused on promoting clean electricity . However, the more electricity we save, the easier it will be to achieve the so called zero-carbon grids and electrification of heating, transportation and industry. However, the budget had little emphasis on saving electricity, an area where Canada significantly lags behind the World. The budget had a clear bias for supplying more energy over reducing demand. For example, the document stated that "as electricity becomes the main source of energy, daily and seasonal demand peaks will become more pronounced. Canada will need to invest heavily in renewable generation to meet this demand." This statement obviously misunderstands the modern operation of electricity systems, where demand-side management is an indispensable resource to reduce peaks and demand growth. Better insulated buildings, more efficient industrial motors and energy management, and optimized commercial lighting and HVAC systems are examples of improvements that provide the same or better services to our electricity systems as energy generation. Demand-side management also involves shifting energy use to different times. "Efficient energy solutions - charging hot water tanks, electric vehicles or industrial heating outside of peak periods - can make room for increased electric heating and cooling needs when it is hot or cold. The federal budget released on March 28 confirmed in dramatic fashion that Canada is facing a major construction challenge. Our electric power grids, which provide essential power services across the country, will need huge upgrades over the next 26 years. "Canada's electricity demand is expected to double by 2050" the budget predicted, saying "our electricity capacity must increase by 2.2 to 3.4 times compared to current levels." These changes are needed to serve rising demand for electricity. The scale of the infrastructure development ahead is unprecedented. The implications for the economy and the environment are enormous and the time proposed is very tight. Judging by the $400 billion estimate recently disclosed by Ontario's grid operator, the cost of power system improvements across Canada could exceed a trillion dollars in this timeframe. What's more, much of this expenditure will be needed in the early stages, in the next 10 or 11 years. Canadians will surely be asking questions about where this money will come from, and how it will be spent. For Canadians, it has become timely to consider how decision-makers and regulators will oversee such a massive investment in the energy system. Without early attention and expertise, the work could be improperly focused, and money could be wasted on insufficiently considered choices. The Electricity Canada, the organization representing electricity generation and transmission companies across the country, is calling for a Canadian Electricity Strategy. They can see more clearly than most the dangers of entering this phase of major development without co-ordination between the many regions, governments, and business entities in the sector. A Canadian electricity strategy will probably need to wrestle with significant public policy questions such as: 1. How far should government go to encourage major new transmission lines between provinces and regions? 2. What kind of community input and engagement will be necessary for each type of development? 3. Do we have the right skills and training programs? 4. How to co-ordinate the timing of major investments with the natural schedule for replacement of existing capital assets? Francis Bradley, the CEO of Electricity Canada, recently said, "Canada needs a cross-government strategy to co-ordinate these efforts, pool resources, coordinate funding and work with the electricity sector to implement the planning and building process." With all this grandiose projects in making still the question remains of from where the money is coming from. I might think that it will come from more taxes on the ordinary Canadians. What about to limit careless spending of the governments on foreign soil pet projects in the name of promoting democracy instead of looking for the need of Canadians. Enough is enough a change is needed!