In part one of this post we broke down how your tax dollars are spent to give you a better understanding of just what you are contributing to. It makes it a little easier when you have to dole out money for taxes to at least know how it is being spent. The fiscal year financials provided by the Government is in essence its report to you as to how it is handling your money.
We are going to continue on with the costs which covers the Parliamentary costs. The government is quick to point out in its report that the smallest spending occurs here. Parliament refers to the House of Commons…the Senate…and the Library of Parliament.
Of course it includes the salaries and benefits for the members and senators of Parliament, other staff members, facilities and services.
The grand total here was $534 million which is less than one quarter of a cent for every tax dollar.
Corporations owned by the Government either directly or indirectly:
This is comprised of 3 major organizations, that brought in a total expenditure of $7.5 billion.
Canadian Commercial Corporation = $1.7 billion
Canadian Broadcasting Corporation = $1.7 billion
Atomic Energy of Canada Ltd. = $1.3 billion
Then there was other funding to cultural organizations like the National Gallery of Canada for example.
The government makes note that some of these costs incurred were offset by money brought in by these corporations which totalled $3.5 billion.
The Canadian debt expense:
Of course the country owes money and this means interest charges are incurred, and then there are the future liabilities such as pensions. The total here is $28.2 billion and works out to 10 cents on the tax dollar.
It should be noted that about 74% of the un-matured debt owed by the country is to Canadians. For example, federal bonds and treasury bills.
That’s our brief summary of federal spending for 2013–14.
- Canada Health Transfer 11 cents
- Canada Revenue Agency 3 cents
- Canada Social Transfer 5 cents
- Children’s benefits 5 cents
- Crown corporations 3 cents
- National Defence 8 cents
- Employment Insurance benefits 6 cents
- Other major transfers to other levels of government 6 cents
- Other operations 12 cents
- Other transfer payments 13 cents
- Public debt charges 10 cents
- Public Safety 3 cents
- Support to elderly 15 cents
$1.00
So now you know where the money goes and you know that you are contributing to this through your tax dollars all of these costs that are met are not totally from tax dollars:
Throughout the 2013 -2014 fiscal year our Federal government collected $271.7 billion dollars, which came from
Personal Income tax collected: $130.8 billion 48 cents on the dollar
Corporate Income tax collected $ 36.6 billion 14 cents on the dollar
Goods and Services tax $ 31.0 billion 11 cents on the dollar
There are various other taxes that are collected that goes into the pot as well. These are non-resident taxes, customs import duties, and the excise levies. These all together brought in $21.5 billion = 8 cents on the dollar
Unemployment insurance premiums collected brought in $21.8 billion = 8 cents on the dollar
Misc. revenues like those from Crown corps. And sales of goods totalled $30.0 billion = 11 cents on the dollar.
Summary:
Corporate income tax 14 cents
Earnings by Crown corporations and revenues from the sale of goods and services 11 cents
Employment Insurance premiums 8 cents
Non-resident withholding taxes, customs import duties and excise levies 8 cents
Personal income tax 48 cents
Goods and Services Tax 11 cents
Total $1.00
So to balance the government books we know where the money is coming from and where it is going.
Our country’s total revenue is….. $271.7 billion
Our country’s total expenses are..$276.8 billion
Oops it looks like we are in a deficit of $5.2 billion which increase our federal debt.
So the big question is….
Is our government not very good at money management?
Or…
Are we as tax payers demanding too much back for what we put into the country?
The possible answers to these two very important Canada tax questions will be the subject of future posts.
