How To Starve The Government
October 1st, 2013 | J. Hodgson
"Let them march all they want, so long as they continue to pay their taxes." -Attributed to Alexander Haig, US Secretary of State
When it comes to politics, many conservatives are troubled by two things: taxes and government deficits. On the first count, many of us just shrug our shoulders and pay our taxes. On the latter count, many of us complain and whine.
If whining, complaining and shrugging is what being conservative is all about then maybe we are getting what we deserve. I suggest an alternative course of action that’s available to ordinary conservatives. A course of action that makes a statement and saves us all money. We need to put money in our own pockets while simultaneously starving the beast.
Here are five easy tips for money conscious conservatives.
1. Buy RRSPs
What’s an RRSP? It’s an account. Like a bank account, except you can buy stocks, bonds, ETF’s, etc.
What’s it do? It helps you save for retirement by encouraging saving.
Why is it awesome? It’s awesome because when you contribute cash to your account, you can deduct the amount from your taxable income.
What’s that mean for example? If you put $1000 into your RRSP, you get about $250 taken off your income tax. Your $1000 can sit in an RRSP account and build interest for the future, while your taxes get lowered immediately as a result.
How do I do this? Easiest way is to go to your bank and tell them you want to open an RRSP account. Tell them you want the Aggressive Investment. They will help you.
How is this conservative? It takes money away from the government. Since you get to keep more of your own money, that means the government receives less. With less money to spend, the government will consequently have less money to waste. Government deficits may worsen, but the politicians will simply have to deal with them more seriously…(or raise taxes, which is political suicide and will require you to buy even more RRSP’s)
Also, you’ll reap more of the wealth you’ve created. Working and earning fair and square. What’s more conservative than that?
2. Give to Charity
Why give to Charity? Socialist governments hate charities because they see them as competitors to the totality of a socialist state. In their minds, charities shouldn’t exist, because the government should provide everything for everyone. Conservatives should support charities to spite socialism and reward go-getters trying to improve the world through entrepreneurial spirit and free association.
What’s in it for me? Tax deductions. Here’s a calculator to figure out how much you can reduce your taxable income. Depending on the province you live in, you should be able to save about 25% on whatever you donate. So if you give $100, you can reduce your taxable income by $25.
How is this conservative? If the world can be made a better place through non-governmental organizations, then state socialism will be less attractive to the general public.
3. Donate to conservative political parties
Why donate? Political parties require donations from supporters. It’s expensive to operate a competitive political party. In Canada there are a loads of restrictions regarding political fundraising. This has been beneficial for democracy and it also empowers ordinary individuals.
What’s in it for me? Tax credits. Here’s a list of what you get for donating to a political party. In most cases you can get 75% back for a small donation. For example, if you give $100 to the Conservative Party of Canada, you get $75 reduced from your income tax.
How is this conservative? The best way to promote conservative ideology in the political realm is to do so directly. Money talks and political parties with the most money talk the loudest. Supporting your local, provincial and federal candidates with a few bucks not only helps your tax load, it helps promote conservatism.
4. Invest in a TFSA
What is a TFSA? It’s an account that you can use to save money...big money. You can buy stocks, bonds, GICs, ETFs, all under the umbrella of a TFSA.
So what? Let’s say you buy stock in McDonald’s and leave it alone for twenty years. Let’s say it triples in value from $100 a share to $300 a share. You cash it in and...you pay taxes on the profits! With a TFSA you don't pay taxes on the profits!
What’s in it for me? Money! Lot’s of future money...tax free!
How is this conservative? A TFSA operates outside of the dirty hands of government. If you prosper with investments, the government can’t tax it away from you. It’s sort of like a reverse RRSP. You don’t suck tax dollars back right now...you avoid them in the future.
5. Make Less Money
What?! Yeah, you heard me. Earn less and pay less taxes. Modern Canada has people working long hours and giving up a huge chunk of their lives in order to earn some cash. As a result, we are one of the wealthiest countries in world. Check out where you rank here.
Pretty high right?
So drop out of the rat race or at least slow down and go a little bit Galt. Enjoy your life instead of trading it for junk you’ll end up selling at a garage sale six years from now. How much is a hobby worth? How about a visit with an old friend? A glass of ice tea with the sunset? A romp in the sack? A conversation? A walk?
Money isn’t everything and like Ferris Bueller said, “Life moves pretty fast. If you don’t stop and look around once in a while, you might miss it.”
How is this conservative? You get life in place of cash and the government gets nothing.
So there you have it. Five simple suggestions that you can start today!