Tax Your Way To Your Prosperity? Justin Trudeau’s tax increases are coming in 2023 – December 28, 2022,
To date none of Justin Trudeau’s policies have led to positive cash flow for Canadian taxpayers. When the government decides it should play a larger role in the economy, the idea is for the government to show that it can do things better than the private sector can do it. One of the ways to measure if the government does something better than the private sector is to look at the national debt.
Under Justin Trudeau, Canada, a country of fewer than 40 million people, has managed to borrow more than a THOUSANDS BILLIONS worth of debt; Canada now has over a trillion dollars in its national debt and nothing positive to show for it.
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The solution, according to Canada’s current prime minister, is to tax the citizens more. The problem with taxing Canadians more when you grow the size of the government is that the Federal government has effectively shrunk its tax pool. Most public servants don’t really pay income taxes; public servants’ income is the result of the private sector being taxed in order to pay for public services.
So when the public sector is taxed, is merely a recycled income that the public sector will likely consume later. Making matters worse is that Canada’s public sector isn’t being paid HONESTLY because Justin Trudeau is going into debt to pay their salaries.
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Now, one of the problems with the welfare state is that people are INCENTIVIZED not to work. Meaning that as taxes go up, which also increases the cost of living, Justin Trudeau will be inviting more people to go on welfare. So as these increased taxes hit Canadians, don’t be surprised if Canadians not only spend less money(which lowers taxes collected) but also decide that now is the time not to work.
Interesting times ahead!