Tax Grab - Government Arrogance & Power Hunger
Government Arrogance and Power Hunger
I just paid some interest to Canada's national income tax office. It wasn't very much, because the amount I had to pay was small, but I was astounded by the rate of interest they demanded. Could you believe 8% per month? Without the compounding effect that amounts to 96% per annum. Because it is charged monthly, its effect is compounded, and amounts to well over 150% per annum.
It still is a criminal offence, pursuant to Section 347 of the Criminal Code of Canada, to charge usurious interest rates. That section defines any interest charged at over sixty percent per annum as being a "criminal rate". The penalties for doing this are serious, ranging from imprisonment for as much as 5 years and, in some cases, a fine of up to $25,000.00. Back in medieval times it was an offence punishable by death. Parliament only allows individuals or corporations to recover a simple rate of 5% on amounts claimed in judgements for money claims, and the courts have allowed up to bank rates of interest on damages claims. Politicians of every ilk have been seen and heard railing against the iniquitous rates charged by credit card companies on overdue charges [usually between 18% and 23%].
I am sure that the charge is really a penalty, but it is not characterized as such by government. They don't have the guts to call it what is really is. But why should slow or late payment attract such a penalty? Many business people who provide goods or services to government are forced to wait unconscionable lengths of time for payment after delivery or services rendered, with no compensation for the loss of use of the money they are entitled to. What is so holy about the government's entitlement that failure to pay on time should attract such a severe penalty? Keep in mind that the government often uses much more severe threats and actions to collect money it demands from us.
Who is responsible for this? It is probably mostly the result of bureaucratic arrogance and power hunger, but it has to be enacted into law by our "esteemed" politicians, so, ultimately they are to blame for it. Is this any worse than rule by warlord or autocratic despot? Is it any worse than the actions of organized crime lenders who also rely on force and violence to collect their huge charges for loans?
To put it all in perspective, only a few decades ago, many people thought a 9% per annum interest charge on late payments was outrageous. These days it is a great deal worse. I guess the public is docile and ignorant enough to allow their masters to get away with it without complaint or challenge.
I just paid some interest to Canada's national income tax office. It wasn't very much, because the amount I had to pay was small, but I was astounded by the rate of interest they demanded. Could you believe 8% per month? Without the compounding effect that amounts to 96% per annum. Because it is charged monthly, its effect is compounded, and amounts to well over 150% per annum.
It still is a criminal offence, pursuant to Section 347 of the Criminal Code of Canada, to charge usurious interest rates. That section defines any interest charged at over sixty percent per annum as being a "criminal rate". The penalties for doing this are serious, ranging from imprisonment for as much as 5 years and, in some cases, a fine of up to $25,000.00. Back in medieval times it was an offence punishable by death. Parliament only allows individuals or corporations to recover a simple rate of 5% on amounts claimed in judgements for money claims, and the courts have allowed up to bank rates of interest on damages claims. Politicians of every ilk have been seen and heard railing against the iniquitous rates charged by credit card companies on overdue charges [usually between 18% and 23%].
I am sure that the charge is really a penalty, but it is not characterized as such by government. They don't have the guts to call it what is really is. But why should slow or late payment attract such a penalty? Many business people who provide goods or services to government are forced to wait unconscionable lengths of time for payment after delivery or services rendered, with no compensation for the loss of use of the money they are entitled to. What is so holy about the government's entitlement that failure to pay on time should attract such a severe penalty? Keep in mind that the government often uses much more severe threats and actions to collect money it demands from us.
Who is responsible for this? It is probably mostly the result of bureaucratic arrogance and power hunger, but it has to be enacted into law by our "esteemed" politicians, so, ultimately they are to blame for it. Is this any worse than rule by warlord or autocratic despot? Is it any worse than the actions of organized crime lenders who also rely on force and violence to collect their huge charges for loans?
To put it all in perspective, only a few decades ago, many people thought a 9% per annum interest charge on late payments was outrageous. These days it is a great deal worse. I guess the public is docile and ignorant enough to allow their masters to get away with it without complaint or challenge.
posted by politicalcommentariescanada | 12:44 AM
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