Letter to the editor - Flaherty compares apples, oranges

Transfers to Ontario at all-time high, Letter Dec. 26
 

There are two primary functions of the federal government. One is to collect taxes, mostly from individuals with mid and low incomes. The second is to spend the money they mostly collect from the majority of Canadians (over $120 billion per year).
 

Most of the money is unfortunately destined to support the largest and most profitable sectors of the economy. A look at the record of public accounts confirms that billions of dollars are transferred every year to industries such as oil and gas production and foreign owned global companies while most jobs are created by small business. It’s unfortunately well known that these jobs offer very few benefits and no pensions.
 

The cost of social programs is a red-herring issue for the Conservatives since the effect of their tax cuts instituted since 2006 are greater than the annual cost of social benefit transfers. So where does most of the rest of the money go to? Mostly to politically motivated waste and expensive operations such as military campaigns and secret security; billions are spent on these.
 

It’s too bad that income tax dollars (provincial and federal) are all collected by the Canadian Revenue Service. Our provincial leaders are left whinging like useless windbags at the federal government, apparently incapable of affecting anything at the federal level.
 

The complicated formula referred to in Finance Minister Jim Flaherty’s article is within the powers of the federal government with its parliamentary majority to change.
 

For more than a century Ontario has been a source of funds for the rest of Canada, but now we find our tax dollars diverted from the public accounts to large global interests while the citizens of this province struggle with high unemployment and reduced pension expectations which the federal government refuses to act upon.
 

RRSPs mainly benefit the Canadian financial industry, which serves as a source of economic policy whenever Mr. Flaherty comes to Toronto to “consult with Canadians.” Meanwhile people like myself lose money in mutual funds while the fund industry pays kickbacks to our “financial advisers.”

More..... http://www.thestar.com/opinion/letters_to_the_editors/2014/01/02/flaherty_compares_apples_oranges.html