A lot of years ago we had a senior friend that I always helped with his yearly tax return. He was retired and lived very economically; as a matter of fact, he was downright frugal. He had to be because his entire income was CPP, OAS, a small pension from the military and an even smaller supplement, which added together, put him about two thousand dollars over the maximum personal exemption.
When I was done the forms one year he informed me that he had forgotten to include $70 of bank interest that he had earned. When I included this paltry amount I was dismayed to learn that he would have to pay income tax in the amount of $79.
A large portion of the folks that I serve at the kitchen are classed as ‘working poor.’ They come to the kitchen so that they can make their minimum wage stretch further. We are happy to be able to help in this way but I feel bad when at tax time, because the forms are so confusing, they have to rely on free help to fill out their forms. In many cases they are considered sub-contractors rather than employees, and often do not realize that they are then fully responsible for all tax, EI, CPP, etc.
So when tax time comes they are presented with a large tax bill even though they fall way under the poverty level. This usually brings on fear, (especially for immigrants), frustration and anger. And, little wonder!
This morning I was in conversation with one such person who asked the following question. “Do you know where this Paradise is where you don’t have to pay any taxes?”
I knew what he was referring to having seen the news about the offshore tax shelters.
“No, I replied, I’ve been looking for it for years.” We bantered back and forth on the subject and had a good laugh, but I sensed an anger just under the surface as well.
As time wore on the whole issue of taxing the population kept coming up in my mind, and by mid-morning I stopped and had this one thought go through the fog I call my brain.
It was this: How is it that the very leaders of our country who came up with and imposed the tax structure we are required to live with, now have the right to create a shelter so that they can avoid the very taxes that the impoverished have no option but to pay?
Over the last few years the CRA has bent over backwards to close loopholes and literally chase those living under the poverty level to pay up or be penalized. The CRA of course is under the directive of the ones who made and enforce the tax law in the first place.
Quite honestly, the folks in the lower income bracket protest less about paying tax than those with higher incomes. It almost seems that the level of protest is proportional to the level of wealth. Among those who protest so much, I find that they actually enjoy bashing the government on the issue of taxes, myself included at times. But for me, I see the impact that taxes have made on the lower income portion of our community. So I can understand the bitter attitude towards those who are in leadership. Mistrust has found a permanent seat.
Many are the suggestions for a flat tax regardless of the income; no loopholes but with a minimum wage cut-off. That dream, for most of us, has less of a chance to become reality than the dream of the aforementioned Paradise.
’Tis a taxing dilemma to be sure!
Chris Salomons is the kitchen co-ordinator of Potter’s Hands in Red Deer.