Modern Monetary Theory: Income Tax Does NOT Pay For Roads

Name Style Affects Legal Meaning: Department of Justice
February 5, 2019
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Modern Monetary Theory: Income Tax Does NOT Pay For Roads

Canada uses Modern Monetary Theory, or MMT.

Canada uses Modern Monetary Theory, or MMT.

Summary

Canada uses Modern Monetary Theory (MMT). CRA and the courts say everyone has to pay their “fair share” of income tax for infrastructure, such as roads. They even prosecute people over this. But this contradicts MMT. So, either Canada doesn’t tell them how income tax really works, or someone’s lying to you.

(Read through to find out how to get a FREE copy of our latest income tax research!)

Background – Canada Uses Modern Monetary Theory

In March 2019 a Canadian government economist told the CBC:

“As the issuer of currency, the Government of Canada can never run out of money and can fund every single social requirement it faces, including free education. It is impossible for there to be a limit on the capacity of a sovereign government to pay debts denominated in its own currency.”

A Canada government economist told Neil Macdonald that Canada applies MMT. Picture credit: CBC

A Canada government economist told CBC reporter Neil Macdonald that Canada uses MMT. Picture: CBC

CBC writer Neil Macdonald reports:

Helpfully, the fellow appended a primer on Modern Monetary Theory (MMT), which posits that the government, not individuals or corporations, owns the national currency, and can print unlimited amounts of it without harmful consequence, as long as it taxes enough of it back to keep spending in check and restrain inflation.

Investopedia.com agrees this is the basis for MMT[1]:

“This goes against the conventional idea that taxes are primarily meant to provide the government with money to spend to build infrastructure, fund social welfare programs etc.”

(For more on MMT and Canada see this web site.)

MMT: Foundation for Basic Income

Since Canada uses MMT, “Canada can never run out of money and can fund every single social program.” That’s how the Green Party of Canada and the current Canadian government, the Liberal Party of Canada, are advocating for a basic income in Canada.

Modern Monetary Theory Contradicts CRA

MMT Contradicts CRA’s Position

It seems Canada has not told CRA that it applies Modern Monetary Theory

Has Canada told CRA it uses Modern Monetary Theory?

Many CRA tax evasion press releases, such as this one, say,

“Those who do not comply with tax laws place an unfair burden on law-abiding taxpayers …”

How? Canada using MMT means it does NOT rely on income tax to build infrastructure or fund social programs! After all, that economist says Canada “can print unlimited amounts of it without harmful consequence.”

Under MMT, income tax is only for keeping spending in check and for controlling inflation. And there are lots of taxpayers working in Canada (and so have to pay income tax) to take care of that!

MMT Corroborates Paradigm Education Group

Porisky was the sole head of Paradigm Education Group (“PEG”). He was found guilty of counselling tax evasion. His verdict was based on, among other things, what his PEG Advanced Course says. (It is reproduced in the Porisky decision Appendix, at page 48):

APPENDIX

QUOTES FROM THE CANADIAN ILLUSION BOOKS AND DVDS

Those who find themselves angrily regurgitating the preprogrammed responses they’ve been taught, such as “We all need to pay our fair share”, or “How are we going to pay for the roads?” have yet to consider the possibility that they have been deceived by those who told us all to trust them.

In other words, CRA used “We all need to pay our fair share” and “income tax pays for the roads” to sway the court to convict Porisky.

Picture credit: telegraph.co.uk

But this contradicts what that economist told the CBC. And sie probably works for the Department of Finance, which is responsible for (and therefore understands) Canada’s tax laws.

In short, Canada using MMT corroborates this part of PEG’s Advanced Course.

MMT Corroborates Apu’s Theory

Apu's Theory Part 5 concludes Canada applies MMT.

Apu’s Theory Part 5 also concludes Canada uses MMT.

Apu’s Theory”, our research on how Canada’s income tax seems to really work, concludes Canada owns[2] all Canadian money (CAD), or, “public money”. Our latest research, Part 5, is “Why Using CAD $ Means No Legal Title”. That economist corroborates our conclusion:

… the fellow appended a primer on Modern Monetary Theory (MMT), which posits that the government, not individuals or corporations, owns the national currency.”

We will delve into this more in a future article.

Conclusion

Either the Department of Finance does not tell CRA how tax laws really work[3], or they did, but CRA lied to you. But neither excuses over 60 PEG Educators and students, such as Russ Porisky, Michael Millar, Keith Lawson, Doug Amell, Bob and Terry Steinkey, Bill Mori, Debbie Anderson, Clarke and Margaret Webster, Kin Tung Fong, and Tania Kovaluk being found guilty. Were they prosecuted for propaganda – for FAKE NEWS?

Email us for a FREE copy of Part 1 of “Why Using CAD $ Means No Legal Title”. It contains 82 slides. The total presentation is 176 slides, and took 400 hours[4] to research and present.

  1. This does not mean we agree with Modern Monetary Theory; just that Canada uses it.
  2. Full ownership is having BOTH legal title and beneficial title. It seems Canada owning all CAD $ means Canada holds legal title to all CAD $, while users only have beneficial title. Is this the legal basis for the government being able to seize or lien “your” property? 
  3. A source, a tax lawyer, tells us Department of Finance lawyers don’t even tell Department of Justice lawyers how the tax laws really work.
  4. We wasted hours reverse-engineering how Canada’s finances work. That CBC article came out shortly after we finished (Murphy’s Law strikes again!) Then we realized our result equals MMT.

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