Voluntary Taxation and Summary

The fourth mechanism for governments to raise money is voluntary taxation, by which I mean gambling. I have a short little diatribe on the use of gambling as a government fund-raiser, and then I’ll try to summarize these four sermons.

I buy lottery tickets. I maintain that if I don’t buy some lottery tickets then I have no right to dream about what I will do if I win. And I also maintain that if the government doesn’t get that money from me by lottery tickets, they’ll get it from me by increasing the income taxes or the property taxes, so I might as well hand it over willingly in return for the dream.

Having said that, however, I’m generally opposed to the increasing legalization of gambling. I don’t like the plans to have the NHL cozy up to the gambling houses and encourage sports betting. I don’t like sports broadcasters’ evident obsession with whether an NFL team covered the spread. I believe that although it’s ok to accommodate a minimal level of “dream” gambling, it is inappropriate for the government to enable gambling to a level that would be considered gambling addiction. Here’s my cure for that. I believe that Ontario Lottery Corporation (or any other provincial equivalent) should issue a smart card to any individual who wishes to participate in any OLG games. When you wish to buy a new lottery ticket, you’d have to present the smart card, and that smart card would confirm that you were gambling within daily, weekly and monthly limits that were established for the individual.

There are several ways to establish that limit. First, the government, (lazy bureaucrats that they are), could simply establish a flat limit – say $50 max per week. Second, you could issue the cards upon receipt of an “I’d like to gamble” application, and that application could ask for income details that would be used to establish an individualized low harm limit. Third, one could link the smart cards to your tax file, and establish a limit based on your previous year’s taxable income.

“Big Brother” you say. “Let’s have no access to our tax files” you say. OK. I’m willing to let someone else come up with a safe method of establishing limits. The bottom line is that government should not be profiting from the misery of people afflicted with gambling addiction, and if we want to have a fun little lottery system, it needs safeguards that don’t exist today. Until we put appropriate safeguards in place, we are collectively guilty of profiting from the weakness of others.

As for non-government forms of gambling? Ban them altogether. It is mostly illegal in Canada to gamble or to offer a gambling service through anything but a government-licensed facility. Let’s keep it that way. That accomplishes two things. First, it enables the establishment of the safeguards about which I wrote in the preceding paragraph. And second, it ensures that any profits to be made from gambling go to the government and help fund our social programs and not to some mafioso’s Caribbean getaway.

Given the widespread availability of off-shore gambling facilities accessible on the internet, it is unlikely that we can fully protect gambling addicts from the consequences of their own behaviours. But we can, and should, ensure that our governments don’t participate in the fleecing.

And now, that promised summary.

I am a bit of a conservative. I’m inclined to resist unbridled government spending and the resultant demand for more taxation – almost always with the demand that we impose that on the rich and make them “pay their fair share”. Despite that innate conservatism, I could embrace a high degree of socialism. I could get on board with universal Pharmacare. I would encourage a broader and more provident medical care system. I believe that we should invest considerably more in the provision of sports and recreation facilities and programs for young people, so that poor families have better access to more expensive sports like hockey. I’d like to eliminate homelessness. I could even embrace a guaranteed annual income. But if we really want to provide a wide and comprehensive social safety net, we should realize that it comes at the cost of having less disposable income. And that impact on disposable income needs to be felt everywhere so that we collectively choose the things that really matter to all of us.

I believe that:
– We need to simplify the income tax system.
– We should try to make GST simpler for businesses.
– We should broaden the base of “sin taxes” and use them ruthlessly.
– We should dramatically alter the way property taxes are established.
– We should resist a new wealth tax.
– We should place reasonable limits on governments ability to raise revenue through gambling.

This endeth the Tax rant.