Canada's federal government began to collect income taxes in 1917 as a temporary measure that has never been revoked. This tax, and other forms of tax that have following it, became the source of funding that has been used to build up the assets of government. In property rights terms, all taxes begin as property of wealth producers and original asset owners but become property of the state once that are received by the government as tax receipts. In other words, there is a change in ownership. If income tax was initially a temporary wartime measure, then when did it become a permanent and legal measure? Or has it?
The constitutional authority for the federal income tax is found in section 91 paragraph 3 of the Constitution Act, 1867, which assigns to the federal Parliament power over "The raising of Money by any Mode or System of Taxation".
The constitutional authority for the various provincial income taxes is found in section 92 paragraph 2 of the Constitution Act, 1867, which assigns to the legislature of each province the power of "Direct Taxation within the Province in order to the raising of a Revenue for Provincial Purposes". The courts have held that "an income tax is the most typical form of direct taxation".
The constitutional authority for the various provincial income taxes is found in section 92 paragraph 2 of the Constitution Act, 1867, which assigns to the legislature of each province the power of "Direct Taxation within the Province in order to the raising of a Revenue for Provincial Purposes". The courts have held that "an income tax is the most typical form of direct taxation".
Canada levies personal income tax on the worldwide income of individuals resident in Canada and on certain types of Canadian-source income earned by non-resident individuals.
Quoted from the Income Tax Act R.S.C. 1985: "An income tax shall be paid, as required by this Act, on the taxable income for each taxation year of every person resident in Canada at any time in the year".
The above implies that Canadian governments have the power to take the property from its citizens, but does not indicate who owns these assets. It is implied that our elected officials have the power to control all tax receipts. To 'control' is different that to 'own'. You can sell something that you own for personal gain. You can control the disposition of an asset that you do not own, but not necessarily for personal gain [although politicians often get away with this].
With income taxes, this is a transfer of current wealth production to control by governments.
With the selling of government bonds [ and other forms of debt-financing] , this is a transfer of future wealth production to control by governments.
How is it the governments have the power to write IOUs [plus interest] of wealth that has not yet been created?
With monetary policy, a planned inflation rate of 2% is a retractive transfer of past wealth production[savings] to control by governments.
How is it the governments have the power to continually tax wealth that was created in the past ?
The answer to the question is complex because the government seems too have control over our past, present and future wealth production and has the power to redistribute this wealth to its political supporters with the stroke of a pen.
Some may claim that we, the people, may not own our government assets but that we control their allocation by the power of the vote. However if you survey all Canadians, I bet that
a very few would approve of giving the power to governments that they have today when it is described to them as I have above.
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