Tax Freedom Day

The Canadian Centre for Policy Alternatives (a left-leaning think tank) recently published a paper with the irresistible title “Tax Freedom Day: A Flawed, Incoherent, and Pernicious Concept." The first part of the title refers to the date, published annually, on which the Fraser Institute (a right wing think tank) says the average Canadian finishes paying off that year’s taxes.

The paper makes two interesting arguments. First, it shows that, whatever you think of the concept, the Fraser Institute’s date is wrong. And it is wrong because the date is purposefully misrepresented for effect.

More importantly, it points out that the whole concept is (as they put it in the title) pernicious. While there may be some date on which our taxes for the year are paid, we aren’t “free” from taxes at that point. We’ve paid for the services which our taxes provide at that point.

It isn’t popular to think in these terms these days. But our taxes pay for a great deal – law enforcement, health care, education, social services – the list goes on. The useful discussion is about what we want to buy with our taxes, not about freedom from them.

But it does make for great press.