A Short Primer On The Fraser Institute

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Groaning Beneath The Yoke

Last week, that paragon of rectitude, impartiality and righteousness (irony alert!), The Fraser Institute, performed its annual service to all Canadian by reminding us of the tax yoke under which we all groan:



This non-profit, tax-payer subsidized 'independent' think tank without a political agenda was keen to share details of our collective burden:

The Fraser Institute calculates that the average Canadian family paid $34,154 in taxes of all sort last year, including "hidden" business taxes that are passed along in the price of goods and services purchased.

The study's authors conclude that visible and hidden taxes would have been equal to 42.4 per cent of the cash income for an average Canadian family in 2015, estimated at $80,593.

By comparison, the study estimates the average Canadian family spent $30,293 on housing, food and clothing last year — about 37.6 per cent of the family's total cash income.

Thanks to a largely compliant and/or lazy mainstream media, this is now being accepted as a factual and grievous injustice. However, leave it to Press Progress to provide some much-needed balance and perspective:

Although the Fraser Institute claims the average family spends 42% of its income on taxes, less than one-third of that number actually refers to federal and provincial income tax.

The Fraser Institute inflates its numbers by tacking on average costs for health insurance, pensions and employment insurance (as if they're all one in the same thing) and further pads their numbers by including corporate taxes and oil and gas royalties for some reason.

Fraser Institute defends their curious methodological choices by arguing "the cost of business taxation is ultimately passed onto ordinary Canadians."

Is that true? To the extent that taxes on corporate profits are passed along to anyone, a US study shows four-fifths of the corporate tax burden would be passed onto income earners in the top 20% – in other words, even by the Fraser Institute's own logic, it's not being passed on to the "average Canadian family."

In a similar vein, that outlier of the mainstream media, The Toronto Star, offers offers this counsel about the alarmist report:

- it deceptively includes corporate taxes, which are largely shouldered by richer Canadians.

- as a share of Canada’s economy, taxes are now at a low rarely seen over the last three decades.

- the portion of income going to taxes has increased by only 7 per cent since 1961.

The biggest flaw in the Fraser report, typical of the kind of right-wing propaganda it regularly disseminates, is the glaring omission of what we get for those tax dollars:

A 2009 report from the Canadian Centre for Policy Alternatives found that middle-income Canadians enjoy public services, from education to health insurance to pensions, worth about $41,000 annually per family – or roughly 63 per cent of their income. Conversely, we have watched as decades of tax cuts have led to eroding public services, but also to rising inequality, persistent homelessness, traffic gridlock and crumbling schools.

So clearly, that yoke under which the Fraser Institute would have us believe we all slave isn't quite the burden they have presented. Indeed, many would not call it a yoke at all, but rather a representation of the values we hold dear as a society. But I guess the Fraser Institute lacks both the will and the tools to measure such vital intangibles.

Stephen Harper and The Canada Revenue Agency: The Unholy Alliance Continues

I have written many times about the unholy partnership between Stephen Harper and the Canada Revenue Agency that takes the form of an auditing witch hunt of those charities that in any way offer criticism of Dear Leader's policies. The latest news offers further proof that official avowals of impartiality in selecting who will be audited are absolute lies.

The laest story involves the actions of the much-reviled and detested former premier of Ontario, Mike Harris:

A fundraising letter written by Fraser Institute senior fellow and former premier Mike Harris criticizing the Ontario government highlights a double standard in the way the Canada Revenue Agency audits charities, critics charge.

The letter takes swipes at the province for lacking a “credible plan” to balance the provincial budget within two years, and goes on to criticize Ontario’s debt and the province’s unemployment rate.

Especially troubling are the Institute's assertions that it doesn't engage in political activities, and that the Harris letter is not political.

Says its president, Niels Veldhuis:

“It’s written by a long time senior fellow of the Fraser Institute, Mike Harris. All of the data in the letter is based on Fraser Institute research..."

Progressive charities that have fallen victim to CRA audits disagree:

“It’s definitely political,”’ says Tim Gray, executive director of Environmental Defence, referring to the Fraser Institute letter.

“The Fraser Institute is clearly doing public policy work in the political sphere,” says Gray, whose environmental group is being audited by the CRA — a probe that began in 2011.

“They (Fraser Institute) should be reporting that (to Canada Revenue) and there’s no reason they shouldn’t be audited based on their compliance with that 10 per cent (political activities rule),” Gray says.

Gray adds that if they’re not being audited, then that raises the question — why not?

Two brief highlights from Harris' letter underscore the political nature of the missive (bolded areas mine):

“Credit rating agencies have further downgraded the province’s credit rating, primarily because it’s very unlikely that this government will reverse course and enact a credible plan to balance the budget within the next two years.’’

“Ontario has experienced reckless overspending by government, ballooning public sector salaries, increased red tape and more union-friendly labour laws.”

Environmental Defence director Gray asks why the Fraser Institute is not being audited. The answer, sadly, is all too obvious for anyone willing to see the pattern, and to understand the deep contempt with which the Harper regime regards anyone with the temerity to challenge its agenda.

The October election cannot come soon enough.

The Fraser Institute (A.K.A., The Pinocchio Gambit)

It is to be hoped that no one was near the proboscis of Jason Clemens, Executive Vice President of the right-wing Fraser Institute, when he told this tall tale to Steve Paikin recently on TVO's The Agenda:



For a parsing of Clemons' concoctions, please click here.

No Surprises Here: The Fraser Institute Shows Its Biased Incompetence

Of course, right-wing groups like the Fraser Institute never let facts and data get in the way of a rabid ideology:

Warning! Pay No Attention To This Seditious Suggestion

A CRA Audit-Free Zone


Okay boys and girls. Please resist the impulse to manipulate the Fraser Institute's data. Really, don't do it. I mean it. There will be consequences. ;)

Will The Harper Promise Of Tax Breaks Continue To Seduce Canadians?

Recently, Ontario Premier Kathleen Wynne called upon the Harper regime to commit $12 billion annually in infrastructure funding. This request takes on even greater urgency in light of the challenges we are and will be facing as we reap the consequences of climate change.

Fiance Minister Joe Oliver's response:

Wynne’s request is “divorced from fiscal reality.”

“We are not going to engage in a wild spending spree, which will create massive deficits and increase the debt. . . . We will also not jeopardize our top credit rating and we will not add to the intergenerational burden,” he said.

At the same time Herr Harper's henchman is preaching the virtues of fiscal discipline and ignoring the increasing costs of doing nothing in light of the above-stated peril, he is also pandering to our basest and most selfish instincts.

Yesterday, in a preview of the 2015 budget that will be designed to ensure the regime's re-election, 'Uncle Joe' offered this tease:

“I’m talking about reducing taxes for Canadian families and individuals”.

The words 'false economy' never escaped him ample lips.

In reference to a study done by the regime's ideological allies, The Fraser Institute, which just released a 'study' claiming we are grossly overtaxed and not getting good value in return, the finance minister had this to say:

Ottawa has reduced the federal tax burden and has urged other levels of government to reduce expenses and taxes.

It’s healthy for Canadians to understand the facts when it comes to taxes so the public can decide what’s fair and necessary.

So the Institute is just providing a public educational service, eh?

In that case, be sure to check out this piece, which points out some flaws in both the study's methodology and ideology.

After all, apparently Uncle Joe wants Canadians to be fully informed to decide 'what's fair and necessary.'

The final choice is up to us in 2015. Will we embrace the Harper ideology of selfishness and insularity and re-elect a corrupt and undemocratic government? Or will we rediscover our collectivist traditions and remember that our obligations are not only to ourselves but to each other?