Canadians and their governments seem to have forgotten that the more you learn, the more you earn

'The No. 1 occupation successful today’s procreation and system is the deficiency of fiscal literacy'

Published Feb 11, 2025  •  Last updated 0 minutes ago  •  5 infinitesimal read

Good examples successful authorities spending, taxation and economical policies would spell a agelong mode to paving the way for Canadians to besides amended their fiscal literacy. Photo by Designer491/Postmedia files

Many Canadians person tax situations that are straightforward, but their finances tin go analyzable successful a hurry if they go financially successful, person planetary connections oregon interests, are progressive successful property readying oregon participate the satellite of entrepreneurship.

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Notwithstanding, it’s been my acquisition that the level of financial literacy for astir Canadians is highly anemic astatine each levels of complexity. Having a basal level of fiscal literacy is simply a indispensable to navigate the analyzable nine we unrecorded in, set yourself up for an eventual and comfy retirement, and marque amended and informed decisions erstwhile voting for and choosing our country’s elected leaders.

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I’m convinced that better choices astatine the ballot box would beryllium made crossed the committee — federal, provincial and municipal — with improved fiscal literacy.

I precocious spoke astatine a nonrecreational lawsuit successful Kelowna, B.C. The nighttime before, I went down to the barroom successful my edifice to get a portion to bring up to my room. As I waited, I was lasting adjacent to a mates of barflies. One of them was alternatively young and the different was older.

The younger 1 said, “I deliberation erstwhile your income and wealthiness is $50 cardinal oregon more, the tax rate should beryllium 100 per cent. I mean, $50 cardinal sounds similar a bully fig … nary 1 volition beryllium capable to walk that magnitude successful their lifetime.” The older chap responded, “I agree, but I deliberation that 100 per cent taxation complaint should beryllium restricted to superior gains.” The younger 1 agreed to that idea.

I recovered myself precise torn, arsenic I often bash successful situations specified arsenic these, arsenic to whether I should effort to assistance these fellows marque consciousness of their nonsensical opinions. One of my missions successful beingness is to works acorns successful the country of taxation and fiscal literacy. Such acorns tin turn into the proverbial mighty oak trees.

In this case, I walked distant without saying a word. In hindsight, possibly I should person chimed successful to assistance them amended their taxation and fiscal literacy. However, piercing the bubble of ideology is highly challenging. It’s truly lone effectual if a partisan-driven idiosyncratic has a dependable acquisition successful fiscal literacy and, much importantly, they are unfastened to caller ideas. Many bash not. It’s overmuch easier to unrecorded successful an echo enclosure and anticipation that things enactment retired and your beliefs get validated.

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Building connected the above, my youngest lad is an aspiring entrepreneur and has tons of bully ideas. “Mom and dad, here’s my proposal: volition you put successful my business?” My accustomed effect is that we’re blessed to see specified an investment, but not without him having a basal acquisition successful concern and fiscal literacy first.

To his credit, helium precocious signed up for a concern diploma programme astatine a schoolhouse successful Calgary. The questions helium has been asking maine precocious astir immoderate of his people contented on with the twinkle successful his oculus are inspiring. He’s learning the basics of accounting, finance, economics, marketing, entrepreneurship, taxation and different invaluable topics. If helium ever realizes his entrepreneurial aspirations, he’ll beryllium overmuch amended equipped.

That leads maine to the existent governmental concern successful Canada. As astir know, Parliament is prorogued until March 24. In the meantime, the Liberal Party is furiously trying to crown its insider, Mark Carney, arsenic its caller leader. Carney has been straight oregon indirectly progressive with advising the Canadian authorities and Liberal Party for the amended portion of the past 5 years.

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Given his awesome world inheritance and quasi-government positions, helium is being positioned arsenic the “saviour.” Well, there’s tons to quibble astir that positioning, including his humanities economical record.

Carney is celebrated for letting his beardown ideology connected clime matters — which are highly debatable — get successful the mode of dependable economical plans. Many, including me, enactment him into the “tax and spend” category. If helium had immoderate engagement successful Canada’s taxation policies for the past 5 years oregon truthful — and it’s highly apt helium has— past 1 tin besides instrumentality important contented with specified policies.

From the ridiculous superior gains proposals (which, successful an astonishing and politically convenient flip-flop, helium precocious said he would drop, arsenic did erstwhile concern curate Chrystia Freeland, who introduced specified proposals) to the short-term rental disbursal prohibitions, the nutty “flipping tax” and a big of different politically motivated taxation policies apt had Carney’s blessing. Accordingly, if helium were to go person and premier minister, could Canadians expect amended taxation and economical leadership? Doubtful.

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Speaking of leadership, it’s beauteous evident Canadians privation existent enactment to assistance navigate during this evident clip of turmoil. We can’t proceed with a lame duck premier minister, authorities and prorogued Parliament. Once the caller Liberal person is elected, it would beryllium a shame if the NDP chopped a woody to proceed Parliament alternatively than calling for an election.

Overall, it’s clip our authorities showed beardown fiscal leadership, including bully taxation and economical policies. Such examples would spell a agelong mode to paving the way for Canadians to besides amended their fiscal literacy. Governments payment from a financially informed colonisation done reduced societal spending, a stronger system and apt accrued taxation revenues.

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As the American economist and erstwhile United States Federal Reserve seat Alan Greenspan erstwhile said, “The No. 1 occupation successful today’s procreation and system is the deficiency of fiscal literacy.”

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That’s wherefore country’s leaders request to works acorns to amended specified fiscal literacy and amusement bully stewardship and examples. The past happening we request is continued out-of-control spending, divisive authorities and mediocre taxation policies successful the sanction of warped ideology.

Kim Moody, FCPA, FCA, TEP, is the laminitis of Moodys Tax/Moodys Private Client, a erstwhile seat of the Canadian Tax Foundation, erstwhile seat of the Society of Estate Practitioners (Canada) and has held galore different enactment positions successful the Canadian taxation community. He tin beryllium reached astatine [email protected] and his LinkedIn illustration is https://www.linkedin.com/in/kimgcmoody. 

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