Can AI be a pessimist?

The unanimous passage of a bill to reduce the cost of government on wage earners by eliminating taxes on tips was cause for celebration by millions of Americans. Could this happen in Canada?

Senate Passes ‘No Tax on Tips Act’ in Unanimous Vote

Epoch Times, May 21

“This bipartisan bill is a good idea. It has support from Democrats and Republicans, so we should pass it, well, as soon as possible, without any poison pills”.

The measure establishes a new tax deduction of up to $25,000 for tips—whether received in cash, by credit or debit card, or by check—that are earned by employees in occupations that customarily receive tips and are reported to their employers for purposes of withholding payroll taxes.

Bipartisan bills in Canada?

Politics is so tribal these days that a battle over policies is always expected simply “on principle”.

What that ‘principle’ is has been rarely stated. According to the Miriam-Webster dictionary, it is defined as “because of one's beliefs” which vary from person to person. Apparently, decisions made in a democracy must always undergo a “trial by fire” when politics is involved.

It’s refreshing to see a bill passed unanimously.

And this bill actually serves the interests of people who really need it‼️

Consider every worker who serves customers well and are deserving of a tip for the quality of work they do to earn it.

What makes the government deserving of a portion of those earnings⁉️

Political gamesmanship is disgusting.

I doubt that there is another topic of that gets more attention than criticism of politicians and public officials who regularly disappoint our citizens. Yet, like a car crash on Highway 401, few drivers can pass the topic without some element of morbid curiosity that attracts their attention to it.

Grok has this to say about morbid curiosity.

Morbid curiosity is the tendency to be drawn to or fascinated by things that are disturbing, gruesome, or related to death and suffering. It’s like when you can’t look away from a car accident or feel compelled to read about a tragic event in detail, even though it’s unsettling.

This curiosity often stems from a mix of human instincts—like wanting to understand threats or prepare for danger—and the psychological pull of the taboo or unknown.

It’s a natural response for many, but it can feel uncomfortable because it clashes with social norms or personal morals.

Bipartisan consensus should be easy

If our elected representatives and unelected public officials truly served the interests of Canadians, you might think that common ground would be easily found to create and enforce policies. After all, the things that concern the safety and security of most people are very clear.

Take the rising cost of living for example.

It looms large in the lives of everyone.

When the average Canadian must remit nearly 50% of annual earnings to all levels of government, it’s no mystery that the elephant sitting on the family budget is the cost of government.

I asked GROK to weigh in on this topic:

👁️ In Canada, how much of the average Canadian’s annual earnings goes towards paying taxes and fees to all levels of government?

🕵️‍♂️ Based on available data, the average Canadian’s tax burden, including taxes and fees paid to federal, provincial, and local governments, is significant.

According to the Fraser Institute, in 2022, the average Canadian family (including unattached individuals) earned a cash income of $106,430 and paid total taxes amounting to $48,199, which represents approximately 45.3% of their income.

Another estimate from the Fraser Institute for 2023 suggests that an average Canadian family of two or more people paid $64,610 in total taxes, equating to 46.1% of their annual gross income of $140,106.

These figures include income taxes, sales taxes, property taxes, payroll taxes (such as CPP and EI), fuel taxes, and other levies. [Notice: no fees for permits, fines, licences, certificates or any other form of government revenues are included in these estimates]

More recent posts on X indicate similar trends, with claims that the average Canadian family pays around 43% to 45% of their income in taxes and fees across all government levels. For example, one post cites that in 2022, the average family paid 45.2% of their income in taxes, while another suggests that for an average salary of $66,000, roughly 50% goes to taxes and fees, though this figure may include broader assumptions about indirect costs.

These estimates vary slightly depending on the year, family size, and specific taxes considered, but a reasonable range for the average Canadian’s tax burden is 43% to 46% of annual earnings. This includes federal and provincial income taxes, sales taxes (GST/PST/HST), payroll deductions (CPP and EI), property taxes, and other fees.

Note that individual circumstances, such as income level, location, and applicable deductions or credits, can significantly affect the actual percentage. For precise calculations, tools like tax calculators or consulting the Canada Revenue Agency (CRA) for specific tax brackets and credits are recommended.

👁️ What proportion does this represent compared to the cost of food, housing and energy?

🕵️‍♂️ In 2023, the average Canadian family earned $109,235 and paid $46,988 in total taxes, earned $109,235 and paid $46,988 in total taxes, which is about 43% of their income.

In comparison, the same family spent approximately $38,968 on food, housing, and clothing combined, which accounts for roughly 35.6% of their income. Energy costs, specifically electricity and fuel, are often included within housing or transportation expenses in these estimates, but precise breakdowns for energy alone are less clear.

For context, in 2021, Canadian households spent around $21,106 on shelter (including utilities) and $8,065 on food from stores, with transportation (including fuel) at about $10,045, totaling roughly 35-36% of income when combined.

This suggests taxes consume a larger share of income than food, housing, and energy costs combined, with taxes being about 1.2 times higher than these necessities. Individual costs vary by province and household, but the trend shows taxes as the largest single expense for the average Canadian family.

Cut government spending❓ a bipartisan policy for Canadians⁉️

👁️ What is the likelihood that bills could be passed in every level of government to reduce the combined financial burden on average Canadians wage earners to below 33% of annual income?

🕵️‍♂️ The likelihood of bills being passed at all levels of government in Canada-federal, provincial, and municipal-to reduce the combined financial burden on average wage earners to below 33% of their annual income by 2025 is extremely low.

And there you have it‼️

Even GROK is pessimistic

about reigning in the

#1 cause of the rising cost of living 🥺