In late May 2024, I had the privilege of
Juno Beach in Normandy, France, with my mom and sister. For those who need a reminder, that was the site where
on D-Day — June 6, 1944 — during the Second World War.
My visit was days before the 80th anniversary of that important historical day. It was a chilling moment to stand in the exact spot that many Canadians gave their lives for to protect our precious democracy and to admire and honour those who fought hard against strong resistance.
Over the years, I’ve admired people such as Don Cherry — who deserves the Order of Canada — who have been adamant about the need to reflect on Nov. 11 about the sacrifices made by our country’s veterans and honour them. In my view, like Don’s, that should be done more than just one day — it should be year-round — and it comes with a solemn duty to do what you can to work to ensure that their sacrifices are built on.
For me, that duty means fighting for a tax system that rewards hard work and risk-taking, not punishes it. I’m one small voice, but silence isn’t an option when policy drifts.
Honouring sacrifice also means protecting what they fought for, including how we steward our country’s finances. That leads me to the recent
. The build-up to it was that it was going to be transformational. If you consider huge spending and its related debt that will ultimately land on the backs of our youth to deal with (by massive tax increases, large austerity or both), then transformational it is.
Or if you believe the messaging that the spending is going to catalyze massive investment into Canada, well, I have some bridges to sell you … cheap and with government financing, of course. Large government intervention into an economy does not have a great historical track record despite those who keep pushing it.
It’s been interesting to watch the reaction from so-called experts and the usual budget cheerleaders. Many seem perfectly fine with the explosion in government spending. Their justification? A barrage of international comparisons, debt-to-gross-domestic-product ratios and other abstract metrics designed to make Canadians feel that everything’s under control.
But cut through the noise and it’s all very simple: every dollar the government spends that it doesn’t have will be paid for by someone, usually our kids and grandkids. As economist
once said, “The real cost of government is not what it taxes, but what it spends. The deficit is simply a deferred tax.”
Some critics say his view is overly simplistic and that government spending can drive growth or reduce inequality. Maybe in theory, but in the real world, when spending outpaces economic growth and accountability is reduced, all you’re left with is a bloated
, lower
and a tax bill nobody voted for. I’ll take Sowell’s blunt realism over academic idealism any day.
The recent budget broke a streak of 10 years of having some sort of annual tax increase or new taxes, which is a good thing. And it was supplemented by the elimination of the ridiculous Underused Housing Tax and the repeal of the luxury tax on planes and boats, though, unfortunately, the luxury tax for automobiles was retained.
But the good was
, including the introduction of a new personal tax credit, the Personal Supports Worker Credit, which is the last thing our tax statute needs, and downright ugly economics: the projected total deficit for the current fiscal year is $78.3 billion, slowly decreasing to $57.9 billion in 2028-29, a reckless path that adds about $322 billion to our country’s cumulative debt during that time.
Joseph Howe, an early Canadian statesman and democratic reformer who later helped integrate Nova Scotia into Confederation, said in an 1871 address, “A wise nation preserves its records, gathers up its muniments, decorates the tombes of its illustrious dead, repairs its greatest structures and fosters national pride and love of country by perpetual references to the sacrifices and glories of the past.”
In today’s fiscal context, one of the greatest structures Canada has is its taxation system, but it is in dire need of repair. Once again, an opportunity to reform our tax system was missed in the recent budget. Given the Liberals’
to have an “expert review of the corporate tax system” during the spring election campaign, it was very disappointing that the budget did not contain this or a much-needed broader reform. This is just plain bad.
Many — including me — have often said our tax system has become so complex, inefficient and punitive, and has grown into a giant income redistribution scheme that it actively works against the values of hard work and sacrifice. Again, it’s long overdue for change.
Don Cherry has always been clear on one thing: we live in the greatest country because of the men and women who serve: those who gave their lives, those who came home and those who continue to stand on guard today.
True remembrance is about how we protect and strengthen what they fought for. That includes the integrity of our institutions, including our tax system. If we want to honour their legacy, we need to govern with discipline, respect taxpayers and stop punting responsibility to future generations.
Anything less is a betrayal of the freedom they secured. And you can honour that by proudly wearing a poppy.
Kim Moody, FCPA, FCA, TEP, is the founder of Moodys Tax/Moodys Private Client, a former chair of the Canadian Tax Foundation, former chair of the Society of Estate Practitioners (Canada) and has held many other leadership positions in the Canadian tax community. He can be reached at kgcm@kimgcmoody.com and his LinkedIn profile is https://www.linkedin.com/in/kimgcmoody.
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