To: marcos who wrote (1245 ) 10/8/2002 9:26:17 AM From: DeplorableIrredeemableRedneck Read Replies (1) | Respond to of 37527 Not another health-care tax Mark Milke National Post Tuesday, October 08, 2002 Here we go again. If the trial balloons launched from Ottawa recently are any indication (and they are), Canadians are about to be hit with a new tax. As usual, taxpayers will be told to take their medicine without complaint and that a new tax -- probably with the word "health" attached to it -- will be good for them. Of course, federal Liberals will dress up the tax hike in language of compassion and necessity. Prime Minister Jean Chrétien gave a strong hint of this strategy last week when, in parliamentary debate, he echoed the famous dictum of Oliver Wendell Holmes, Jr.: "It has been said before and we on this side of the House agree that, like it or not, taxes are the price one pays to live in a civilized society." One could debate whether government Members of Parliament and the Roy Romanow commission have had an open mind on health-care reform, or whether it has all been a dog-and-pony show to provide cover for what they really want -- ever more money and tinkering with health care from the top down as opposed to substantial reform with, say, individual medical savings accounts à la Singapore. But that debate aside, Canadians should not buy the notion that this is the first time a new tax or an increase in tax has been justified based on health care. There are multiple examples from Canada's past. Gleaned from the work of tax historian J. Harvey Perry, here are some past tax introductions and increases justified in such a manner. 1916: Prince Edward Island's War and Health Tax Act raises all taxes by one-third except for the road tax. Saskatchewan's Union of Hospitals Act authorizes local municipalities to set up hospitals to serve common needs and to finance the same through land tax levies. 1939: Saskatchewan passes the Municipal and Medical Hospital Services Act, and extends the municipal taxing right to include personal taxes, though not to exceed a $50 charge per family. 1944: Ontario's Municipal Health Services Act permits municipalities to levy property taxes or a poll tax for health plans. 1947: Saskatchewan introduces a new tax -- compulsory monthly premiums for health insurance. 1948: Ontario enacts a 20% amusement tax in the Hospital Tax Act. British Columbia introduces a 3% retail sales tax under the Social Security and Municipal Aid Tax partially for medical services. The same year, British Columbia passes the Hospital Insurance Services Act which, similar to Saskatchewan, mandates personal and family premiums. 1950: Saskatchewan increases and renames its 2% retail sales tax to 3% for health funding under the Education and Hospitalization Tax Act. 1951: British Columbia raises its health-care premiums. 1953: Newfoundland introduces an entertainment tax of 5¢ per ticket for cancer control. 1954: Saskatchewan health-care insurance premiums are raised. Newfoundland broadens the entertainment tax. British Columbia increases the retail sales tax from 3% to 5%, now known as the social services tax. 1959: Nova Scotia imposes a 3% retail sales tax known as the Hospital Tax. 1965: British Columbia reintroduces health-care premiums and keeps the retail sales tax in place. With the introduction of medicare in 1969, the provinces once again moved to raise or initiate new taxes over the following years. Nova Scotia raised its retail sales tax from 3% to 7% and promised the new money for health programs. Quebec increased the corporate tax by 2% and in 1972 introduced a payroll tax on employees, employers and the self-employed with the same justification. In Manitoba, a 5% addition to personal income taxes was labelled the "Hospital Services Tax" though proceeds from it were not specifically earmarked. Monthly premiums were introduced in 1969, eliminated in 1973, but a payroll tax was introduced in 1982 for health-care and education costs. In the early 1970s, Saskatchewan increased its retail sales tax and earmarked half of the new money for health services. Alberta introduced health-care premiums in 1969. In 1984, British Columbia introduced a 4% surtax on personal income tax as a "health care maintenance" tax and upped it to 8% in 1985. Health-care tax increases continued into the last decade when, in the early 1990s, Ontario New Democrats introduced a new high-income surtax which the Ontario Conservatives later kept and re-labelled the "fair share" health-care levy. And in 2002, two governments that are supposed to be fiscally conservative -- British Columbia's Liberals and Alberta's Conservatives --both doubled their health-care premiums. Around the time Justice Holmes uttered his now-famous remark in 1904, total government expenditures in Canada amounted to 9.5% of the economy. By 1910, government relative to the economy reached 11.4%. And the latest figure from the OECD pegs Canada's total government expenditures at 41.9% of gross national product. It is one thing to introduce or raise new levies when government taxation and spending is low compared to historical standards -- even compared to historical welfare state levels -- but taxes have risen for the past several decades with only a temporary retreat in 2000. But rather than divert existing expenditures, the federal government appears ready to raise taxes on Canadians once again. Mark Milke is the former British Columbia director for the Canadian Taxpayers Federation and is the author of Tax Me I'm Canadian -- Your Money and How Politicians Spend It. © Copyright 2002 National Post