The Truth About Canadian Taxation

Immorality, Misuse, and Foreign Aid Scandals

Do you remember first learning about the concept of taxation? I do. 

I was told that taxes are necessary for a clean, safe, and functional society. However…

Are Taxes Necessary and Moral?

When I explain to people that income tax is inherently immoral, I typically appeal to two arguments. First, a tax is a financial penalty, and nobody should be penalized for being productive. Second, income tax is the involuntary seizure of personal assets and, therefore, theft. While you can make arguments in favour of taxation from a utility perspective, you cannot from a moral one.

The Utilitarian Argument for Taxation

Utilitarians believe that ethics should be based on maximizing pleasure or minimizing suffering for the greatest number of people. Through this lens, while acknowledging that income tax may be involuntary, it is argued that taxes are used for services that benefit many and therefore are ethical. The typical utilitarian argument in favour of taxation goes something like: “If there were no taxes, who would build the roads?!” This is a fallacy, considering the government doesn’t actually build the roads; they just use your money to hire contractors.

To further my point, Canadian roads started being established in the 18th century, and by the end of the 19th century, road networks had greatly expanded from Eastern Canada all the way to British Columbia. Income tax, on the other hand, wasn’t implemented until the early 20th century. In 1917, then Prime Minister Sir Robert Borden levied an income tax on Canadian citizens, promising that it was a temporary measure to help finance the country’s involvement in World War I.