TAX SCAM
                                   BY
                             NINA C. FULFORD


IS THIS GOVERNMENT THEFT?


There was a time when Canadian taxpayers did not have to send their 
money in to the government until the end of the fiscal year. It was 
theirs to bank and in doing so gain the advantage of earning interest 
on it. This is what occurs today in America. However, in Canada, sometime 
in the seventies, without any referendum or vote on it that I have been 
able to determine they passed an act to take it off of your paycheck 
every two weeks. 


Now a lot of people saw this as a good thing as they never had to worry 
about having that money on hand to remit to the income tax department.
However that was in the days when the average laborer was getting around 
Three hundred dollars a month in wages. Most people do not see beyond 
their own little life so the amount of interest they would have made 
was not enough to scream about. But follow the step by step system of 
today's wage and interest rate and see a different picture.


Now the tax system on a month-to-month basis is like a round robin, so 
it is only the first three months that when this was implemented where 
big companies and government did not get the full amount of interest. 
After that it continued on a full-time basis.


From January to March the companies keep your tax money and get the 
interest on it. Then they send it on to the tax department and they 
get the interest on your money for the next nine months of the year. 
But as it is a round robin so to speak it is ongoing for the full year. 
So both parties have now benefited from your tax dollars that are not 
due until January of the next year. For big companies who have over 
2,000 employees that is a lot of interest. For a tax department who 
is collecting for the millions of Canadians who work and pay taxes 
we are looking at millions if not billions of dollars in interest over 
the year, year after year.  Since interest rates have fluctuated 
between 3 to 7-1/2 percent over the last 30 years we can take a base 
percentage of 5% on these tax dollars. At today's wages let's say the 
average person makes from $3,000 to $5,000 a month. He is assessed 30% 
of his wages every two weeks. That is $1,000 to $1,600 approximately 
for the month all told. At the end of the three months the company has 
earned 5% on 2000 x $1,000 dollars. And he gets that every 3 months. Of 
course the banks don't pay 5% on only three months so you have to 
divide that to approximately 31/3%. Still a hefty bit of cash. But don't 
forget the Government who is now busy collecting its share of the action 
for the next nine months. But if you remember that this works as a 
round robin thing then they both are collecting for 12 months of the 
year. Year in and year out.


Someone I talked to about this said that the government does not bank it. 
How ridiculous! Of course they bank it. They want to make that interest.
But at all times remember that this is not legally the Governments money 
until the end of the fiscal year, (unless they legislate it in as their 
money as soon as they read this!). So they don't legally have a right 
to that interest they are taking off of you. Do people like farmers and 
self-employed pay ahead of time? And neither is the interest being made 
on your money part of your remittance to the government being allowed to 
you. 


Maybe big business has to pay taxes on the money it makes off of you 
but does the government factor in that hidden interest on the tax's in 
their bookkeeping account? I doubt it! All they legally have to do is 
account for the actual taxes collected, which is on file at the tax 
department via your tax returns.


How did they get this approved? How did they get big business to go 
along with this? I know this! If I was a huge corporation and the 
government came to me and told me that they wanted me to collect the 
tax dollars for them, I would have said, "what's in it for me to do 
your work for you! Why should I pay my bookkeepers to do your work 
for you?"  And if I were a big contributor to your party I'd be even 
more incensed at the request. I might even threaten to take my business 
elsewhere. But if you offered me a percent of the interest then I 
would go along with that. Is that how it happened? It does not matter 
if the small business did not want to do this as they have no more 
say in things than you and I do, but not big multicorporations who 
have thousands of offices and business across the country. They are not 
in business to take a loss from anyone. 


Send me feedback at;NINA_FULFORD@telus.net


Last modified on February 27th, 2003