Oh yes, I did. I said the most heinous word in the dictionary. And right when everyone is thinking about getting their information together for tax season.
I am watching all the relief programs that have been passed and are being discussed right now. The last Coronavirus bailout was in the amount of $2 trillion. How many zeroes are behind that? This one was done in March, 2020. So now the bailout being debated is $908 billion. Wow! Lots of zeros too. So let me ask a simple question. How is all of this going to be repaid? I just checked the current debt of the United States is at $22.6 trillion. I am not sure if this includes the bailouts. All I am wondering is how are these debts going to be paid off? Taxes? I tried to calculate how much each American would be owing and my calculator doesn’t have that many zeroes, so I’m not even going to try.
But as someone who was born and raised in Canada and lived there until 2008, let me tell you about taxes. Apparently, taxes were started in 1917 in Canada as part of the Income Tax War Act. The taxes were only supposed to remain in effect with WWI. Well, maybe WWII. Well, maybe not because they are still around. So currently, Alberta, Northwest Territories, Nunavut, and Yukon have a sales tax of 5%. (Alberta is the province that has all the oil.) Lucky them. Prince Edward Island, Nova Scotia, Newfoundland and Labrador, and New Brunswick have a sales tax of 15%. These maritime provinces are hard hit with unemployment and job losses, so how fair is a 15% sales tax for them? The rest of the provinces are in between 5% and 15%. Ontario, which is where I lived is now at 13%. There are three different types of taxes in Canada, the PST (provincial sales tax), the HST (harmonized sales tax), and GST (goods and services tax) .
Well, Canadians wanted government health care which everyone in the States thinks is free. Sure. So why the sales taxes? I should tell you the sales taxes are on everything. Absolutely everything. But then come tax season, you find out how much more you owe. Americans rant and rave when there is discussion of raising state taxes. Canadians just drop their heads and sigh. I just looked and the Canadian debt is at $768 billion. Now that is for a population of 35 million, give or take one or two.
So this is my question. How is all this debt in the United States going to be paid? It has to come from somewhere, I mean from someones. (Yes, I meant someones.)