Showing posts with label taxes. Show all posts
Showing posts with label taxes. Show all posts

2022-04-13

Now Comes The Necessary Part Ontario Edition

Nevertheless, and irrregardless of and notwithstanding that federal-provincial jurisdiction exists the actions that are necessary for the next Ontario government to take are the same as those the newly elected federal government needs to take. It’s the same electorate and the same Canadians and the same solutions that are required.

To that end I am simply annotating my recent blog post to establish its relevancy to the Ontario election.


Now Comes The Necessary Part

We can argue all we want over whether the election was necessary but what is definitely necessary is the government tackling the pressing issues of the day, issues that have been pressing for decades and in some cases since before Confederation.

Indigenous Reconciliation

This is clearly an area where the primary jurisdiction is federal but that does not change the fact that both the federal and provincial Crowns have been responsible for the encroachment on First Nation's Lands and the denial of their inherent rights. The Ontario government has a clear role to play in reconciliation, along with the people of the province.

The longest standing issue in Canadian political history is the plight (struggled over what language to use here) of the original inhabitants of North America and the effects of European “discovery” and colonization.

[Side note: I often think the dictionary should define “discover” as “stumble upon”.]

The recent discovery of 150 (latest count Canada wide 6,000 and growing) unmarked graves at an Indian Residential School in British Columbia has focused Canadians thoughts on the treatment of North America’s indigenous peoples from unfairly negotiated treaties to the lack of clean drinking water on reserves.

People are finally realizing that it was not simply a problem of a few bad people abusing a few children in a few schools but a systemic policy of cultural genocide (“take the Indian out of the Indian”) seen as, in the words of the Indian Affairs Department, the “final solution to the Indian problem”. The facilities included such high levels of neglect and abuse that the likelihood of dying in an Indian Residential School was slightly higher than the likelihood of dying as a soldier in World War II.

Of course the term school for these facilities is inappropriate. Schools have graduates, not survivors.

It is no wonder there are problems in indigenous communities when the destruction of indigenous families and culture was government policy for so long.

Governments have committed themselves to reconciliation but what will that be. From my euro-centric viewpoint I would see it as a new social contract between Indigenous Peoples and the rest of Canada, something that will have to be achieved by consensus. But it will be up to Indigenous communities to decide when reconciliation has been achieved as they are the only ones capable of judging that.

[Another side note: Until then the flags should stay down.]

Health Care

Health care is an area where the primary responsibility is provincial. Indeed the national health care program we have now was pioneered by Saskatchewan under provincial jurisdiction. There is nothing beyond political will preventing the new Ontario government from implementing the measures cited below as an example to the rest of Canada.

Public health care, or Medicare as we Canadians call it, was first implemented in Saskatchewan in the form of hospital coverage in 1947, followed by full health care coverage following the 1960 provincial election. Federally the Medical Care Act was passed in 1968, followed by the Canada Health Act in 1984 which affirmed and clarified five founding principles: public administration, comprehensiveness, universality, portability and accessibility.

However in the over 50 years since then the system has stagnated, indeed it has gone backwards with the federal level of funding decreasing over time. We need to finish building the system and we cannot wait another 50 years to do it incrementally. The government must act now to extend the system to include:

- at least 50% federal funding

- a family doctor for every Canadian

- full mental health care, including psychology services where medically necessary

- full long term care for those requiring residential care

- full prescription drug coverage

- full eye care coverage

- full dental care coverage

- full physiotherapy coverage where medically required

Climate Change

Combating climate change will require a myriad of policy decisions that involve both federal and provincial governments, The new Ontario government must move to address this in the areas under it's jurisdiction.

The first warnings of climate change and it’s effects were noted over 50 years ago and the warnings have become more dire year after year with governments responding with lots of promises but little real action. The irony of all this delay is that the longer we wait to act, the more drastic actions we have to take to respond to this crisis. Those against taking drastic measures should have been calling for us to take action sooner rather than arguing against taking action at all.

The idea of starting new fossil fuel projects at a time when we need to start phasing out fossil fuels is simply ridiculous yet it is treated as a serious option in industry and government circles. How drastic to we want the measures to have to be when we finally realize we have to take action before it is too late.

From an economic point of view there are a tremendous number of opportunities available in the renewable energy sector. Call it whatever you want but the concept of a Green New Deal may be the economic and environmental salvation of our future.

Inequality & Under-taxation

Inequality requires tackling the problem at both ends. At the bottom we need to bring workers income and wealth up. As most workers and jobs fall under provincial jurisdiction it is clearly the Ontario government’s responsibility to increase minimum wages and employment standards, the most important being to make it easier for all workers, especially those in the so-called “gig economy”, to unionize. Also it is well within the province’s jurisdiction to establish a guaranteed basic income to eliminate poverty.

At the other end of the scale, the overpaid and overwealthed, the province has all of the tax measures available to them that the federal government has to redistribute income. To the extent that the income tax system is harmonized with the federal system the province always has the option to do as Quebec has and separate it’s income tax system from the federal one.

Ever since the creation of capitalism there has been inequality because the system is designed to create and reward inequality.

However I have to say that during my lifetime (since the 1950s) it has become noticeably worse. One factor is that the wealthy capitalists have moved the means of production to low wage countries so that their portion of the rewards of labour has increased, while the jobs left behind in North America are lower wage jobs.

They have invented a whole new sector of the economy based on piece-work to avoid paying the existing minimum wages or providing employee benefits and they give it a snazzy sounding name, the gig economy, to try to convince people they are freeing them from wage drudgery and letting them be their own boss when in reality the corporation has more control over them than if they were unionized wage workers.

At the same time the taxation of corporations and the wealthy has declined, partly in response to corporate blackmail threatening to take more jobs elsewhere if they are forced to pay fair levels of taxation.

It is also because wealth equals political power and excessive wealth equals excessive political power and that power is used to enact polices that favour the wealthy.

Governments need to enact policies that are actually designed to serve working people and dedicated to their well being, policies that will counter inequality and under-taxation.

Let us start with decent minimum wages and labour laws designed to encourage and assist workers in organizing unions. Minimum wages should not be designed to keep workers just above the poverty line but designed to provide workers with a middle class income. Our economy has the money to do that it just requires a little redistribution from those with excessive wealth to the people that actually produce that wealth.

We also need a guaranteed basic income for those that for whatever reason are unable to be employed at any particular time.

We can increase employment by redistributing money from the private sector to the public sector via a tax on excessive income and wealth to provide jobs building public infrastructure and affordable housing for everyone.

As for taxation, we can start by raising the level at which people start paying income taxes and increase the amount of tax paid in the higher marginal tax brackets. We also need dedicated taxes on excessive levels of income and wealth. I would tax away all excessive income (above $1,000,000 annually and all excessive wealth (above $100,000,000) but I do not expect any government to go near that. However that leaves a huge amount of room for a wealth tax that will have little practical impact on the standard of living of the excessively wealth while providing great benefit to the common good.

This is not in any way proposed as a punishment but just a means for them to create a better country/world with no impact on their personal well being.

Electoral Reform

Ontario and the federal government currently share the same Single Member Plurality (SMP) electoral system. Both need to change. There is no reason Ontario cannot act first and set an example for the federal government and the other provinces.

Winston Churchill is often quoted as saying “democracy is the worst form of Government except for all those other forms”.

Ever since democracy (“rule of the people” in Greek) was invented by they Greeks we have been looking for ways to make it less worst.

[Yet another side note: My Eurocentric education tells me democracy was invented by the Greeks but I would not be surprised if forms of democracy were being used in non-European cultures before then.]

The key to any democracy is the electoral system, how the people actually select the people to represent them in government.

The system we use now is Single Member Plurality (SMP), more often referred to as First Past The Post (FPTP), an objectively silly name. In Single Member Plurality systems the country (or other jurisdiction) is broken into constituencies and each constituency chooses a representative to send to the legislature. Whichever candidate receives the most votes becomes that representative. We use the term plurality because the candidate does not have to receive a majority of votes cast, just more than any other candidate.

The main benefit of SMP is that voters elect local representatives.

The main drawback is the elected candidates could possibly be the last choice of more voters than they are the first choice. Also theoretically a party could elect 100% of MPs with less than 50% of the total votes, though in practice a typical result may be more like 60% of MPs with 40% of the votes.

There are two main proposals to replace this system: Ranked Ballots (preferred by the Liberals but not in their platform) and Mixed Member Proportional (proposed by the NDP in their platform).

Ranked Ballots solves one of the problems of SMP in that it avoids the last choice of a majority of voters being elected as MPs or forming a government. It however will likely create an even less representative House of Commons based on voters first choice party preferences.

Under Mixed Member Proportional (MMP) a majority of Members of Parliament are elected in the same manner as SMP to represent defined constituencies. Then an additional number are selected from party lists in order to balance the percentage of MPs from each party with the percentage of total votes received by each party (often referred to as the “popular vote”) to form a House of Commons representative of the views of the total population. Under MMP there is usually a threshold of percentage of total vote required to be allotted seats, often 5%, to avoid radical fringe groups having representation. However if that threshold is met a party receives representation. But is not representation of all voters what democracy is about.

One of the main criticisms of MMP is that it is unlikely to provide one party majority governments (unless a majority of voters support one party). But is that not what democracy is supposed to provide, a legislature that reflects the will of the people. Would we not be better off if parties learned to work together for the common good rather than simply engaging in political posturing. By reducing the power of a single party in government you reduce the power of a single person (the majority party leader), and perhaps get back to actual representative government rather than the trend of effectively electing (even if indirectly) a dictator to rule over Parliament.

Changing our electoral system to a more democratic one, MMP, is the most important thing the government can do.

Conclusion

These are not the only issues of importance but ones that have not been properly addressed over decades and more. We need the political will to address them all now without the excuse that the solutions need to be implemented incrementally.

Both the federal and the new Ontario government need to act urgently on these priorities.

2008-01-22

Phasing Out Tobacco

A United States Senator has an interesting idea.

U.S. Senator Mike Enzi, R-Wyo., has proposed a tobacco-control plan that cuts to the chase and simply orders companies to get fewer people to smoke. With roots in the regulation of power plant emissions and the educational reform act known as No Child Left Behind, Enzi's idea is that government would set performance goals for tobacco companies to meet. Instead of conventional "command and control" regulation -- in which government regulators tell people what to do -- under "outcome-based regulation," government tells them what to achieve.

How would tobacco firms comply? They could raise prices, promote cessation aids, sell nontobacco competitive products or innovate in ways we can't imagine. What to do and how to do it is their decision to make.

Under the senator's plan, tobacco companies would be required to reduce their U.S. customer base by approximately 90 percent over two decades. At the end of that period, our country could be down to an incredibly low smoking rate of about 2 percent, an ambitious target. Companies that failed to meet performance goals would face whopping financial penalties, making it fiscally more attractive for them to lose smokers than to gain new ones.
So is this feasible and how would it be done.

The tobacco industry is very much like the oil and gas industry - it is a dying industry with an addicted customer base that will pay almost anything for the product. In both cases, one for environmental and the other for health reasons, they know they have to phase themselves out. The oil and gas industry also knows it has a limited supply of resources. Virtually every oil and gas company has established an alternative and renewable energy component to eventually replace it’s fossil fuel production, in large part from the revenues from higher gasoline prices that they know their automobile dependant customer base will pay no matter what..

The tobacco industry should do what the oil and gas industry has done - not react to it’s decline but be “pro-active” and plan for it.

The tobacco industry could use additional profits from higher prices that it knows it’s addicted customers will pay to move into moral alternatives to tobacco production and sales. Higher prices will deter new customers which will help it achieve its mandated goal, not to mention the fact that enticing people to become addicted to tobacco is about as immoral as you can get.

Governments should immediately remove tobacco taxation from the general revenue stream (Consolidated Revenue Fund) so as not to be dependent on a tax base that it is attempting to phase out. The funds could be dedicated to a fund to pay for tobacco related health costs that will eventually decline over time. Some of it could also go into incentive payments to tobacco companies that lower their sales faster than the mandated targets.

This would all be in addition to government regulations prohibiting cigarette advertising, sales to minors and smoking in public.