Blog

When You Start Working For Yourself And Not The Government

When You Start Working For Yourself And Not The Government
Profile photo of Gregory Cummings

On 17 April 2012 the United States celebrated its annual Tax Freedom Day. Wikipedia explains the concept:

“Tax Freedom Day is the first day of the year in which a nation as a whole has theoretically earned enough income to fund its annual tax burden. (…) Every dollar that is officially considered income by the government is counted, and every payment to the government that is officially considered a tax is counted. Taxes at all levels of government—local, state and federal—are included.”

In Canada, Tax Freedom Day is calculated by the Fraser Institute. In 2011, it fell on 6 June. This was the 157th day of the year. According to their research study:

“In 2011, the average Canadian family earned $93,831 in income and paid a total of $39,960 in taxes (42.6 per cent).”

If federal and provincial budget deficits were balanced through taxation (as opposed to equally devastating inflation), Tax Freedom Day would be even further delayed:

“In 2011, the federal government and most provincial governments expect to run budget deficits. Since today’s deficits must one day be paid for by taxes, deficits should be considered as deferred taxation. Had Canadian governments increased taxes to balance their budgets, the average Canadian family would have worked until June 21 to pay the tax bill. In other words, the Balanced Budget Tax Freedom Day arrives on June 22, 16 days later than Tax Freedom Day.”

This is a necessary consequence of the cradle to grave welfare-warfare state. To paraphrase Ron Paul, Tax Freedom Day should serve as a frightening reminder of how much liberty we’ve lost.

You deserve to keep the fruits of your labour.

Blog
Profile photo of Gregory Cummings
@gregorycummings

Gregory Cummings (@gregorycummings) is a Pharmacist and Certified Diabetes Educator. He has owned and operated his own retail pharmacy business since 2009. An alumnus of Dalhousie University in Halifax, Nova Scotia, Cummings received his bachelor's degree in pharmacy with distinction in 2008. He lives in Sault Ste. Marie, Ontario with his fiancee and daughter.

More in Blog

Blowing Hot Air on the Wrong Target

David HowdenJuly 20, 2016

A wonderful new book about Austrian economics for the layman

Patrick BarronJuly 11, 2016

The Real Lesson of Brexit

Patrick BarronJuly 7, 2016

Wrong solution to a misunderstood problem

Patrick BarronJuly 6, 2016
Big_Ben_-_05

The consequences of leaving the party

Alasdair MacleodJune 24, 2016

My letter to the Philadelphia Inquirer in defense of Brexit

Patrick BarronJune 13, 2016

Puerto Rico needs better advisors

Patrick BarronJune 10, 2016
smokestack

The problem with cap and trade

Danny LeRoyJune 8, 2016

Trade negotiations are not necessary

Patrick BarronJune 7, 2016