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From: "John Feldsted" <jfeldsted@shaw.ca>http://www.sott.net/
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Subject: Liberals reach deal with the provinces on sharing pot tax revenue
Now isn�t that just special. The wolves have decided how to divide up the carcass. They have a new tax they can�t wait to get their grubby paws on.
Although I don�t use any drug other than alcohol or whatever my doctor prescribes (I gave up tobacco as too darn expensive) I am seriously considering acquisition of a still. This old sinner is tired of the enormous taxes on one of the very few pleasures I can enjoy in my later years.
We have listened to months of misinformation and rhetoric about why legalizing marijuana is a sound move, but the real motivation is new tax revenue. Provinces are whining about the increased costs of managing legal sales of weed, but we only need to look at the local liquor marts to see how a lot of the cash will be spent.
Give governments a monopoly on anything and its get real expensive very quickly.
There is no mention or consideration of waiving taxes for medical marijuana use. There are not that many who use it as a medication and most of those are poor enough without being taxed for a medication. Government greed knows no bounds.
Once this tax is in place, future budgets will include incremental increases in the cannabis tax � after all it is just another �sin tax�. We have seen it all before. It will not take very long for the provinces to introduce their own cannabis taxes � we have seen that before too.
When do we stop governments spending lavishly on buying our votes and then taxing the heck out of everything they can think of to keep deficits a wee bit smaller? Does no one understand that rising deficits translate to rising interest payments and less money for a government to spend? Deficits are self-defeating.
Despite government hand-wringing, consumer debt is not a problem. It is the accumulating interest on that debt that eventually results in personal bankruptcy. Governments are not immune to the same rules of prudent fiscal management. Governments take more and more of our earnings each year and refuse to admit they are a leading the way to imprudent spending and growing debt.
Desperate people will undertake desperate actions and we have a growing number of desperate people as each year passes. Governments are far too removed from the working poor to understand that they have passed the point of diminishing returns. The harsher the taxation, the harder people will work to find ways to hide income from taxation.
One thing is certain; the underground economy is going to grow. Barter still works. You do something for me and I do something for you. We both get what we need but no money changes hands. Tracking down and taxing those transactions is going to keep Morneau awake for many, many nights.
In the meantime, Trudeau and Morneau claim they are helpless to stop very rich people and corporations from hiding money in off-shore accounts. There are many less off-shore investors than there are small businesses. It does not occur to them that they could use far fewer resources to gain far more income by plugging those loopholes. They are not the guardians of middle income earners; they are wiping them out.
John Feldsted
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