The Canadian Red Ensign

The Canadian Red Ensign
Showing posts with label income tax. Show all posts
Showing posts with label income tax. Show all posts

Wednesday, September 9, 2015

The Monarchy is More Important Now Than Ever Before

Her Majesty Elizabeth II reigns over the United Kingdom, Canada, Australia and her other Commonwealth realms and that reign has now surpassed that of Queen Victoria as the longest in our line of monarchs. This is reason to celebrate and to wish Her Majesty many more years upon the throne.

Unfortunately there are those who insist on spoiling occasions like this. One such person is Anthony Furey, former comment editor of the Ottawa Sun and columnist for the Sunmedia chain of newspapers. We are living in days of great confusion about our identities, as was evident in the recent media circus surrounding Bruce Jenner's apogynosis, and Mr. Furey is a confused individual of an all too common type - a liberal who thinks he's a conservative.

I don't mean he is a liberal in the contemporary North American sense of a progressive who believes in the nanny state, coddling criminals, and the soft tyranny of sensitivity classes and human rights tribunals. He is a classical liberal, a true believer, in Eric Hoffer's sense of that term, in capitalism, individual liberty, and democracy. That is better than the other kind of liberal, but it is sometimes difficult to tell the difference, and his Toronto Sun column of Sunday, September 6th, is one of those times. He choose this time in which we are rejoicing in Her Majesty's long reign to suggest that Canada severe our ties to her successors and become a republic.

That shows the kind of lack of class one would expect from a Grit or an NDP supporter. Perhaps not a Green supporter, as, while I would say that their leader, Elizabeth May, is wrong about many things, perhaps most things, she at least is a monarchist who understands the importance of the institution. It is most unbecoming, however, in a supporter of the party that calls itself Conservative, and is so to the extent at least that it takes seriously the eighth of their Founding Principles.

Furey begins his screed the way most republicans do, by talking about newcomers to Canada and projecting onto them puzzlement over why the "democracy" to which they have come to flee "tyranny, instability, or religious fervour" is a monarchy and not a republic "like our neighbours to the south". This is the updated version of an old liberal trick. It used to be, when the Liberals would attack our country's British heritage and institutions, they would do so in the name of French Canadians, not because French Canadians had told them these things were offensive to them, but because they assumed they would be. It was a dirty trick, for the Liberals wished to replace our country's British institutions and, not coincidentally, secure their hold on power in the country, by turning French and English Canadians against one another. They came very close to tearing the country apart. More recently, progressive opponents of the monarchy, usually from the NDP, have expressed this opposition in the name of New Canadians but this is the same old dirty trick - trying to turn Old Canadians and New Canadians against each other for political gain. One would think that no one who has moved to Canada in the last forty years bothered to find out any basic information, such as that it is a Commonwealth country and a constitutional monarchy, before coming here.

There will be a "crisis of confidence" in the monarchy at the next succession, Furey argues, which may very well be the case but it will not be due to any fault in the institution, but rather to republicans bent on stirring up trouble. Failing to grasp the distinction between the regality and dignity attached to the office of monarch with that of the person who holds the office, which latter is due in part to personal traits of character and in part to having absorbed it from the office during a long and successful reign, he states that neither Prince Charles nor Prince William carry the same "heft" as the queen, which could not reasonably be expected of them until they have reigned as long and as well as she has. He brings up the cost of converting all of our currency over to the name and image of the new monarch, ignoring the fact that this would have to be done if we converted the country into a republic as well, but with the additional cost of opening up the constitution again, which, the last time it happened, created a crisis that for the good part of two decades threatened to split the country.

Furey shows no understanding of either the country or the institution of which he writes. "Time to set us free", he says, but this is nonsense. The idea that to be free one must be a citizen of a republic rather than a subject of a monarch belongs to the country south of our border and was adopted by that country at a time when they were the largest slave-owning country in the world. One of the reasons the Americans rebelled against the Crown was that it had guaranteed the French Canadians the right to the practice of their Roman Catholic religion after the Seven Years War and they wanted all of North America to be Protestant.

Does this sound like their republic was a more free system of government?

We are free subjects of Her Majesty and if we are less free today than we once were it is entirely due to acts of our elected officials. Furthermore, much of the legislation that has lessened our freedom has been done by our politicians in imitation of laws first passed by the American Republic. Income tax, which takes far more out of our pockets than any other tax, which requires us to hand over our records of employment to the government, and for the government to maintain a large tax collecting agency, was introduced by the Americans temporarily in the 1860s, then permanently in 1913. We introduced it in 1917, the year the Americans entered the war we had already been fighting for three years. The expansive social security network that we call the Welfare or Provider State was introduced in North America in two big leaps, the 1930s and 1960s. In both cases the Canadian government followed the example of an American President, FDR and his New Deal and LBJ with his Great Society. In 1964 the Americans passed the Civil Rights Act, which was unnecessary to end de jure segregation in the South as it had already been ruled unconstitutional by the American Supreme Court in 1955, but which interfered with the freedom of association of all Americans by telling them they could not privately discriminate as individuals in certain situations. In 1977 our country followed their example by passing the Canadian Human Rights Act. This went further than the American bill because it included a section, mercifully recently removed, that told us what we could and could not say on the telephone and on the internet, but we would never have passed this Act at all without the American example. More recently, both the Liberal government of Jean Chretien and the Conservative government of Stephen Harper followed the example of the second Bush administration in the United States by passing laws, in the name of fighting terrorism, that weakened the ancient constitutional safeguard of our freedoms that requires police agencies to get a judicial warrant before investigating and arresting us.

Clearly it is not the monarchy which is to blame for the erosion of our liberties and following the example of the American republic has not made us any freer.

Indeed, in Canada, the monarchy is the basis of our freedom, as two real conservatives, John Farthing and John G. Diefenbaker, explained in their books Freedom Wears a Crown and Those Things We Treasure, both sadly out of print. Diefenbaker explained how the erosion of our basic rights and freedoms under the Trudeau premiership went hand-in-glove with that government's attack on the institution of monarchy, and Farthing explained how the attack on the Crown's reserve powers and reduction of its role to the purely ceremonial, under Liberal governments going back to Mackenzie King's, undermined the accountability of the Prime Minister and his Cabinet to both Crown above and Parliament below, paving the way for Prime Ministerial dictatorship.

The Americans, when they put together their federal republic after the Treaty of Paris, relied heavily on Montesquieu for their idea of the separation of powers into executive, legislative, and judicial. What they did not want to admit was that Montesquieu had gotten the idea by observing this same division of powers in the British Parliament. Nor did they want to admit that not only did the British Parliament, and later our own in Canada, already contain this division into the executive powers of the Crown ministers led by the Prime Minister, the legislative powers of the whole of Parliament, and the judicial powers of the courts, Montesquieu saw that it also embodied Aristotle's idea of the most stable constitution - one that combined the elements of monarchy, aristocracy, and democracy in a mixed constitution that would avoid the destructive cycle of constitutions that he had observed in the ancient Mediterranean city states. We, having inherited this mixed constitution from the UK, would be fools to give it up, which we would be doing if we ceased to be a monarchy.

The fact of the matter is that democracy is not the source of freedom that Furey thinks it is. The ancients believed it to be the worst of the three simple forms of government, each of which could be good or bad, depending on whether the one, the few, or the many, ruled for the common good or their own interest only. They regarded democracy as the worst because its good form was closest to its bad form and it contained no internal brakes on adopting its bad form. This is all the more true of modern democracy, which is based on the idea of the collective sovereignty of the people. When sovereignty belongs to the people, and the people are the government, everything the government does is the action of the people to themselves. Anything and everything can be justified.

The American founders recognized this, which is why they set up their republic the way they did. It was not to be a simple democracy - even the president would be elected only indirectly by the general populace, through the Electoral College. Indeed, what is truly praiseworthy about modern Western governments is not that they are democracies but that so many of them have kept democracy's worst tendencies in check. This is a basic characteristic of the English-speaking world but it was not true of the French Republic of the 1790s, of Russia after the Tsar was deposed, or Germany in the 1930s and 1940s. What made the difference was that English-speaking countries were liberal in the best sense of the word - holding to the idea that individuals had rights and freedoms which all governments, even democratic ones, must respect, and if they are to be violated in the name of the common good, it must be under extraordinary circumstances, and under clearly defined limits.

Effective as liberalism has been in holding democracy's excesses in check, it does not have an infinite capacity to do so. It is not a naturally stable check on what Tocqueville called "the tyranny of the majority" because it sees itself as being based upon principles of abstract reason that are universally applicable and available, and does not recognize that it could only have developed and can only operate in certain contexts, under certain conditions. It functions best in the British parliamentary monarchy system in which it first developed for this system contains additional checks on the excesses both of democracy and of liberalism itself.

One of the negative aspects of democracy is that it places power in the hands of politicians, who are by definition ambitious people who seek power. Lord Acton was not entirely correct when he said that power corrupts and that absolute power corrupts absolutely, but it is true to say that power is very dangerous in the hands of those who seek it for themselves. Our system divides the ownership from the exercise of power. The sovereign ownership of the powers of government belongs to the monarch, but they are exercised in her name by the Crown Ministers, the Parliamentary assembly, and the courts. The House of Commons is filled with politicians including the Crown Ministers but the fact that they are in the position of servants, exercising the Queen's powers in her name, injects a degree of humility that would not be present if they were merely representatives of the people. Governments that speak in the name of the people - like the 1790s French Republic, the Third Reich, and every Communist "People's Republic" the world has ever known, are the most arrogant and cruel governments possible.

Canadians made the right choice in choosing loyalty to the Crown and the British model of government. The French Canadians, who had only just come under the British Crown after the Seven Years War, chose to remain loyal when the Americans rebelled. The English-speaking Loyalists chose to come up here and live under the Crown over persecution and dispossession in the United States. When the Americans tried to "liberate" us from the Crown in the War of 1812 we fought back, and when we confederated as a nation in 1867, English and French Canadians alike agreed to a federation of provinces, with our own federal parliament under the shared Crown. A great many Canadians would still look upon the moment when, no longer automatically at war when Britain was, we declared war on Nazi Germany and fought side by side with Britain, for our separate countries and common king, as our country's finest moment. To describe our monarchy as foreign is to be out of touch completely with our country, its nature, and its history.

No, Mr. Furey, we still need the monarchy. Indeed, we need it more now than ever, to keep our increasingly arrogant politicians humble, to give our government a touch of class and dignity that is above the demeaning circus of democratic electoral politics, and in these turbulent, ever-changing times, to provide us with a link to our past, history, and heritage, that has withstood the test of time.

God Save the Queen,
Long May She Reign

Thursday, April 26, 2012

GTN Tory Classics No. 3: Twenty Years Later: A Pyrrhic Victory

The term Pyrrhic victory comes from Pyrrhus of Epirus, a 3rd Century BC Greek king who fought against Rome. At the Battle of Asculum in 279 BC, he led a coalition army against a Roman army of about equal strength. The battle lasted for two days and in the end Rome was routed, but Pyrrhus lost a huge portion of his own army in the process. After the battle, Pyrrhus is said to have remarked "One more such victory, and we shall be undone". A Pyrrhic victory is a victory won at a cost so high it means the ruin of the victor as well.

I wrote the essay that followed for the 20th anniversary of the fall of the Berlin Wall. In this essay I argue that the West won the Cold War against Communism at the price of becoming Communist ourselves. This essay also argues against the widely held but foolish idea that "Communism in theory" is noble and good and unrelated to the actual experience of 20th Century Communism.


Twenty Years Later: A Pyrrhic Victory?


By Gerry T. Neal
October 20, 2009

This November 9th will mark the 20th anniversary of the fall of the Berlin Wall. The significance of that historical event cannot be exaggerated. It marked the beginning of the end of the global conflict that had been raging since the end of World War II between the two superpowers that had emerged from that War to take the place of the great European powers that had been decimated by the World Wars. Two years after the East German guards abandoned the check stops and allowed free access through the gates of the wall the Soviet Union was no more.

Did the end of the Cold War mean that we had won and Communism had lost? Or was the “victory” of the West a Pyrrhic victory? In his 2007 book, Homo Americanus: Child of the Post-Modern Age, Dr. Tomislav Sunic pointed out that in Europe some authors had made the observation that “communism died in the East because it had already been implemented in the West”. Is this in fact the case?

What was or is Communism? It was an ideology and a movement dedicated to bringing about a global revolution on the part of the working class that would establish an egalitarian society. It’s roots lay in the philosophy of Jean-Jacques Rousseau, the 18th Century philosopher whose ideas inspired the French Revolution which became the template for revolutionary movements that popped up all over continental Europe in the early 19th Century. One of those revolutionary organizations, the Communist League, commissioned German economist Karl Marx and his friend Friedrich Engels to write a manifesto outlining the aims of their movement. The Communist Manifesto was published for the first time in London in 1848. Less than a century later a party known as the Bolsheviks, dedicated to the ideology of Communism, seized control of the state in Russia, and turned the old Russian Empire into the Union of Soviet Socialist Republics. Under the leadership of tyrants like Lenin and Joseph Stalin, Communist Russia established a brutal system of totalitarian rule. Freedom to worship was severely curtailed by the officially atheist state. Artificial famines were created to inflict mass starvation and suffering upon the Ukrainians. A class of peasant known as the “kulaks” were made the official scapegoat of the Soviet state and targeted for persecution. Forced labor camps were set up all across the USSR. Long before Hitler came to power in Germany the Bolsheviks had set a record for state cruelty and oppression that the Nazis, brutal as they were, would never be able to top. It would, however, arguably be topped by the Chinese Communists led by Mao Zedong who in 1949 had driven out the Chinese Nationalists and conquered mainland China.

Show trials, Potemkin villages, concentration camps, artificial famines, mass executions of entire classes of people deemed to be enemies of “the people” because of their education, wealth, or religion, these were what Communism looked like in practice wherever it reared its ugly head, whether in Russia under Lenin and Stalin, China under Mao, Cambodia under Pol Pot or Cuba under Castro. The whole time this was going on, smug, ivory-tower, leftist intellectuals in America, Canada, the UK and Europe stuck their noses in the air at anyone who considered Communism to be a serious threat to human freedom and happiness.

These sort of things, we were told by leftist academics and Hollywood actors, are not what Communism is really about. Communism is really about equality and sharing and being fair to people. Only those with unearned wealth and power which they jealously guard for themselves while unfeelingly leaving other people to suffer could possibly be opposed to Communism.

Alright then. Lets look at Communism in theory.

The Communist Manifesto, in which Marx and Engels set forth the ideas and aims of the Communist Party, was a short document. It outlined Marx’s distinct view of history as progressing through a series of conflicts between oppressor classes and oppressed classes and his prediction that the next revolution, on the part of the proletariat (industrial working class), would lead to the abolition of private property (the root of all evil in Marx’s theory) and the establishment of a society where everything is owned in common and people contribute to the best of their ability and in accordance with their needs. In their second chapter, entitled “Proletarians and Communists”, Marx and Engels put forth a 10-point agenda for the Communist movement to achieve its goals.

What is interesting about this agenda is that 3 of the points have been completely accomplished in Western societies. The second point is “A heavy progressive or graduated income tax”, the fifth point is “Centralization of credit in the banks of the state, by means of a national bank with state capital and an exclusive monopoly” and the tenth point is “Free education for all children in public schools. Abolition of children's factory labor in its present form. Combination of education with industrial production, etc”.

Note that each of these points is a step towards statism. An income tax is a direct tax on the incomes of people that requires people to give detailed information about their employment and income to the government and which cannot be established apart from an intrusive government tax agency that keeps records on people and has the power to audit people like Revenue Canada or the IRS. When that tax is “progressive or graduated” that means that the government is telling certain people they are making too much money and so the government will take a larger share from them than from others. This tax was established in the United States in 1913 and in Canada in 1917.

A central bank is a tool for the government and bankers working in collusion with the government to confiscate everybody’s wealth without them actually coming up to you and saying “you have saved such-and-such an amount of money over the years, we are now going to take it away from you”. The Federal Reserve System was established in the United States the same year as the income tax and the Bank of Canada was established in the 1934.

Universal public education takes the responsibility for and control of the education of the young away from their parents and places it in the hands of the central state. When schools are paid for and controlled by the central government they become instruments whereby that government can undermine the authority of parents, churches, and other social institutions through state indoctrination. As of late, the public schools seem to be doing far more of that, than teaching kids to read, write, and do math, and imparting to them a basic knowledge of the literature and history of their society and of the world at large.

The other seven points of the Marx/Engels agenda have not been fulfilled so conspicuously and completely but with our estate taxes and government bureaucracies like the CRTC and FCC, and the ministries and departments of transport, it can be said of many of them that they are fulfilled in spirit if not in the letter.

The leftist academics might pipe in at this point and say “See, that proves our point, you can have Marx and Engels without the Gulag, and the killing fields, and the terror famine, and the Great Leap Forward”.

Lets take another look around us then. We don’t have apparatchiks but we do have self-important sycophantic bureaucrats galore. We don’t have yes/no elections on candidates from a single party. We get to chose between various brands of the same party so as to get the policies of Jack Layton under the label of Stephen Harper. We don’t have secret police knocking on our doors in the middle of the night and dragging us away because we have written scurrilous verse about our Leader. We do, however, have Human Rights Commissions, which investigate our actions and words to make sure they measure up to official human rights ideology and which summon us to trials where we are not entitled to legal counsel but where we can face penalties of up to $50 000 and life-time gag orders if we are convicted for just posting words on the internet. There are people in jails across Western Europe whose only crime was to question aspects of the historical account of the Holocaust. Instead of re-education we have “sensitivity training”.

What we don’t seem to have any more are the prescriptive Rights of Englishmen under English Common Law, whereby we are free to do whatever we want if it is not a crime clearly proscribed by law. The Common Law Rights of Englishmen further protected us by insisting that we, if detained by the state, have a right to be immediately presented with the charges against us, to have a judge rule on our detainment, to a trial before a jury of our peers, and if convicted to appeal our case up to Her Majesty herself. Apparently “human rights” trump those rights.

These all seem to have fallen by the wayside as our government has pursued the goals of progress, equality and “human rights”. It looks like Communism, whether in its stark, ugly, naked form in the USSR or Red China, or dressed up to look pretty in Canada and the United States, is simply incompatible with the long-standing British tradition of liberty.

If we value that tradition of liberty, maybe it is time we started asking our politicians to give it back to us, and to get rid of all the Communist innovations they have smuggled in over the last century. Otherwise, the West’s victory over Communism of 20 years ago, is a Pyrrhic victory indeed.

Friday, July 1, 2011

The Conservative Dominion of Canada

A gross number of years ago, the British North America Act was passed by both Houses of Parliament in February, signed into law by Queen Victoria on March 29th, and came into effect on July 1st. This piece of legislation established a new country in North America – the Dominion of Canada.

The Conservative Party was in power in London when the BNA Act was passed and the Conservative Party under the leadership of Sir John A. MacDonald formed the first government in the new Canadian Parliament in 1867. While the Grits in the 20th Century would claim to be the “natural governing party” of Canada – and did everything they could, by hook and by crook, to transform the country so that their claim was a reality – Canada was founded as an essentially conservative country, loyal to the traditions we had inherited from Europe.

The Province of Quebec, which before 1867 had been Lower Canada, had been guaranteed its culture, language, and religion by Parliament and the Crown after it had been won from France in the Seven Years War in the late 18th Century. That culture was a very conservative one, including the strict practice of the Roman Catholic faith, and remained so until the 1960’s when Quebec underwent the “Quiet Revolution”. Today, secularism and socialism are prevalent in Quebec, which went NDP in the last federal election, and it often seems like Quebec’s zeal to protect her French language is all that remains of her old conservatism.

English-speaking Canada has solid conservative roots as well. Since 1867, the name “Canada” has referred to the entire country established in that year. Before 1867, the name “Canada” referred to the territory that is now the provinces of Ontario and Quebec. Ontario, or Upper Canada as it was called prior to Confederation, was where the United Empire Loyalists had fled after the American Revolution. The United Empire Loyalists, like the Americans, had been British subjects living in the 13 Colonies. When the American leaders decided to declare their independence from Great Britain and to form a Republic, the Loyalists were those who wanted nothing to do with the project, who were loyal to the king and saw no compelling reason to throw off the old order in favour of a new one. This was a very conservative attitude and the American leaders referred to the Loyalists as “Tories”, which was the name of the conservative party in Great Britain at the time.

The War ended with the Treaty of Paris in 1783. In this treaty, the British government recognized the independence of the 13 colonies, that would then form the American Republic. It is this recognition and not their sinful act of rebellion against their God-given king that granted legitimacy to the American Republic. The Loyalists, facing persecution from the triumphant rebels in the former colonies, fled to territory that was still under British control. For most of them that meant Canada.

The United Empire Loyalists are sometimes slandered by pseudo-conservatives in Canada. The slander generally takes the following form: “The Loyalists chose to remain subjects of the king rather than to become free Americans, indicating a preference for being ruled, which manifests itself today in the willingness of Canadians to go along with the tyranny of big government and socialism”. This reasoning, however, is utter nonsense.

What such liberals – for although they call themselves conservatives, people who hold such views of our country and its founders are actually liberals – ignore is the fact that it was the “free” American Republic that introduced socialism and big government to North America. The American government brought in their progressive income tax a few years before we brought in ours. Canada’s income tax goes back to 1917. America’s goes back to 1913 (1). Our government sold income tax to us as a “temporary measure” to pay for WWI, a war we had been fighting for three years already when the income tax passed Parliament. That was the same year the United States joined that war – four years after they had reintroduced their income tax.

In the Great Depression in the 1930’s, American President Franklin Delano Roosevelt created the American welfare state in the “New Deal”. This created pressure on our government to follow suit, and similar programs were introduced up here later that same decade. The attitude of the two governments towards socialism could not have been more different however. FDR, in his first year in office, became the first American President to recognize the Bolsheviks as the legitimate government in Russia. While he was doing so, the Holodomor – the state generated famine that killed several million Ukranians – was underway. In contrast with FDR, whose soft-spot for Stalin would later be the cause of Eastern Europe’s being dominated by the Soviet Union for 40 years, our Prime Minister at the time, R. B. Bennett (a Tory), was zealously fighting the Red Menace in its domestic manifestations in the form of the unions and the Communist Party of Canada.

The bill which introduced liberal immigration to the United States of America was the Hart-Celler Act of 1965. In Canada, the equivalent legislation was passed two years later in 1967. Both Canada and the United States passed legislation which made private acts of discrimination illegal in certain circumstances. This legislation invented a previously non-existing “right” for ethnic minorities to not be discriminated against in hiring, promoting, firing, and the renting and selling of property and in doing so placed new limits on the rights of property owners and business owners. This legislation was the necessary first step towards “affirmative action” which is a euphemism for “reverse discrimination”. The United States passed this legislation in 1964. Canada passed this legislation in 1977.

Do not mistake me. I am not pointing all of this out in order to “bash” the United States. Our government has gone a lot further than the American government has in most of these negative directions.

My point is, that since the American Republic went down most of these roads before we did, our having gone down those same paths cannot be attributed to the fact that our country’s founders were loyal to the British Crown. That loyalty is in fact a conservative trait. The great shapers of conservative thought – Samuel Johnson, Edmund Burke, Benjamin Disraeli, T. S. Eliot – were all royalists.

When the Fathers of Confederation brought the British provinces of North America together into the Dominion of Canada in 1867, the Dominion was established as a confederation of provinces under a constitutional, parliamentary monarchy, modeled after the parliament in London with which it would share a monarch. The upper house of the Canadian parliament would be a Senate rather than a House of Lords because it was considered more suitable for our situation here in North America. The British North America Act, the written part of our constitution (for we also inherited the unwritten British constitution, including the Common Law and the prescriptive rights of Englishmen), designed which areas of responsibility would belong to the federal government and which to the provincial.

It was a very conservative constitution.

The Liberal Party under Lester Pearson and Pierre Eliot Trudeau in the 1960’s, 70’s, and early ‘80’s did everything they could to tear Canada away from her roots and re-shape her into a progressive, socialist, left-wing utopia.

The conservative resistance to this revolution was not what it should have been, in part because conservatism was divided. I do not refer to the fact that the conservative vote was divided between the PC party and the Reform Party/Canadian Alliance. I refer to the fact that patriotic love for Canada and respect for Canada’s own branch of the English tradition was separated from conservative economic and social views. So-called “Red Tories” (2) displayed the former but little to none of the latter. Western populists associated with the Reform Party had many conservative economic and social views but were often hostile to Canada and its traditions.

Of the two parts of conservatism, patriotism and reverence for tradition, is by far the most important. Social and fiscal conservatism are meaningless without it.

Today, on our one hundred and forty-fourth birthday as a country, with the Conservative Party in power with a majority government, it is time for Canada’s conservatives to reflect upon the roots and traditions of Canada, and to blend a love and deep respect for for those traditions and roots and the country to which they belong with sound notions of fiscal responsibility, private property, economic liberty and support for traditional morality and social institutions.

Only then will Canadian conservatism truly be whole again.

Happy Dominion Day!

God save the Queen!

(1) If we count the income tax introduced by the Republicans during the war of 1861-1865 and later abolished it goes back even earlier than this. This income tax was abolished because it was ruled unconstitutional by the Supreme Court. Hence, income tax had to be reintroduced to the USA by constitutional amendment – the sixteenth.

(2) “Red Tory” has numerous meanings. It was originally coined to refer to people in the Conservative Party influenced by the ideas of George P. Grant, a traditional conservative who naively believed socialism was less destructive of the social order than capitalism is. Those who self-identified as “Red Tories”, however, (which Grant did not) seldom possessed the classical philosophy, Christian faith, and social conservatism of Grant. The term eventually came to mean little more than “a socially liberal, progressive socialist who is a member of the Conservative Party” and small-c conservatives tend to use the term with this meaning as an insult.

Monday, December 13, 2010

Monarchism and Minarchism

Imagine that you are sitting at your dining room table. Having just finished your breakfast, you are glancing over the morning newspaper while you enjoy your cup of coffee and prepare for the coming day, when all of a sudden there is a knock on the door. You go to answer it and on your doorstep you find a man you have never seen before. He has with him a briefcase, a clipboard, and a smug, pompous, attitude of superiority.

You ask him who he is and he says “I am from the government and I am here to inspect your home to make sure it is up to regulation standards”.

Naturally, you ask to see the man’s credentials. He produces them and they appear to be legitimate it, so reluctantly and with a great deal of annoyance at having your daily routine disturbed, you allow him in.

The inspector goes through your house, from attic to basement, making sure you have working smoke detectors in every room, that your electrical, water, and sewage systems meet the latest standards. From time to time he makes snotty comments about the way you live:

“You know, you really shouldn’t have all these appliances plugged into the same circuit.”

“You should rearrange your furniture to make it easier for people to leave in case of a fire.”

Finally the inspection is over, and the inspector lets you know that you have passed. “Just by the skin of your teeth”, he adds, by his demeanor though not his words.

Was it a king or queen who authorized this invasion of your home? Or was it a democratic assembly composed of politicians who are elected by a general vote on a regular basis?

After the inspector leaves you realize you need to go right now or you will be late for work. In a hurry, and still irritated by the inspection, you get in your car and hurry towards work. A couple of blocks before you reach your workplace you hear a siren. You look in your rearview mirror and a police car is flashing its lights at you and a policeman is waving you over to the side.

You glance at your speedometer and see that you have been speeding – not recklessly, but enough to get you stopped.

You pull over to the curb and wait for the policeman. He walks up to your window and asks to see your driving license. He takes a look at it, hands it back to you, and asks you if you realized how fast you were going. Then he asks you why you aren’t wearing your seatbelt.

You had been so preoccupied in your mind with the inspection and getting to work on time that you had completely forgotten to fasten your seatbelt! Now you have been caught having committed two traffic offences at the same time, and the policeman is convinced that you are a troublemaking scofflaw and decides to make an example out of you. He gives you a tongue-lashing, writes you a big ticket, and sends you on your way to work, where you are now, of course, late.

Who thought up the idea of punishing people with fines for not wearing their seatbelts – an offence which can not possibly hurt anyone other than the offender? Was it a king? Was it a queen? Or was it not rather a bunch of progressive do-gooders in the democratic assembly?

You get to work and your boss chews you out for being late. You explain the circumstances and you notice that he isn’t really listening to you and seems to be worried about something. Then you remember that it is government inspection week at work too. Today the fire inspector will be making sure your employers fire detection system and fire escape routes meet government standards. Tomorrow the safety inspector will be inspecting your workplace, looking for potential hazards to your and your co-workers safety. Several other inspectors will be coming in later in the week. Preparations for these inspections have been hindering your companies productivity for the past month.

Who was it that tied your company up with so much red tape? Was this an innovation from the Crown or from the Commons?

The idea is widely held today that democracy is the form of government that is most compatible with freedom and limitations on government power. This notion, however, is contrary to the facts of history.

The last few centuries saw the triumph of Whiggery. In Whig doctrine, a country may have a king or queen (a head of state whose office is passed down through hereditary succession) but only if their position is reduced to that of ceremonial figurehead. The actual governing of the country must be carried out, by officials elected by the general public. In the Whig system the king or queen “reigns but does not rule”, is the “head of state” but not the “head of government”.

The Whig system should not be identified with constitutional, parliamentary monarchy. The confusion of the two is common but erroneous. The latter is a much older aspect of the English constitution which we in Canada have inherited. A constitutional monarchy, is a monarchy in which the office of king or queen regnant is established, defined, and filled by society’s constitution and the king, deriving his authority from the constitution, is therefore responsible to the constitution, to uphold it rather than to overthrow it by governing arbitrarily. A parliamentary monarchy is a monarchy in which the constitution dictates that the sovereign lawmaking authority of the king or queen is to be exercised “in parliamento”. Parliament is derived from the French word “parler” which means “to speak”. The concept here is that the people who live under a country’s laws should have a voice in the making of those laws. It is a completely different concept from the notion of democracy in which the people themselves are regarded as the sovereign power.

Constitutional parliamentary monarchy is an English tradition that goes back prior to the Norman conquest of 1066 to the time of the Anglo-Saxon kings. The line of Norman kings that started when William of Normandy secured his shaky claim to succeed Edward the Confessor to the throne of England by defeating his rival Harold II at the Battle of Hastings promised to govern according to the constitution and laws of Edward, which had evolved out of the constitutional reforms made by Edward’s ancestor Alfred the Great, King of Wessex, in the 9th Century. When John Plantagenet was compelled by his barons to agree to the Magna Carta in 1215 it did not really introduce anything new in the way of constitutional limitations on the authority of the king, so much as require in writing his agreement to uphold the existing constitution.

The triumph of the Whigs occurred in 1688 when Parliament forced King James II to abdicate and gave his crown to his son-in-law William of Orange. This did not have the immediate effect of reducing the office of king to that of ceremonial figurehead but it ultimately led to that because it represented the triumph of the principle of democracy over the principle of royalty in the constitution. Over the course of the three centuries since the so-called “Glorious Revolution” the implications of the Whig victory have unfolded as Parliament, especially the elected lower House, has taken over the role of actually governing, and the role of the Crown has shrunk to a ceremonial role.

If the Whig doctrine, linking non-intrusive, limited government, and freedom to the democratic principle is correct, then we should expect that over the last three centuries government would have shrunk, taxes would gone down, and government presence in people’s everyday lives would have all but vanished.

The exact opposite is true.

The more the important the principle of democracy has become in our mixed constitution, the more real governing power has been concentrated in the hands of elected officials and the bureaucracies they head, and the less of a role the Crown plays in government, the bigger government has become.

Over the last three centuries, the Parliaments of Great Britain and Canada have imposed income taxes on their peoples. The first income tax was introduced in Great Britain by the government of William Pitt the Younger in the late 18th century. Canada’s first income tax was introduced in 1917 by the Borden government. Income taxes take far more money out of the hands of the tax payers and raise far more government revenue than any other kind of tax. They were unheard of back in the days when the king was unmistakably the head of government as well as the head of the state.

Also unheard of, back in the days when kings had more real power, were these large government bureaucracies we have today with their armies of inspectors invading homes and businesses to enforce libraries of petty regulations covering every minute aspect of everyday life. Huge bureaucracies go hand in glove with mass democracy. The saying “a man’s home is his castle” is obsolete today in the age of democracy, but it actually meant something back in the age in which it has its origins – the age when kings ruled as well as reigned. Kings were simply not interested in passing laws to prevent you from hurting yourself and hiring huge numbers of civil servants to enforce these laws. The king had constables and magistrates to enforce the peace, i.e., to keep you from hurting others and/or upsetting the civil order. It is democratically elected politicians and the progressive “experts” they hire to staff their bureaucracies that created the “nanny state”.

Democracy, then, is not the foundation of a free and just society under a limited government, that liberal doctrine makes it out to be.

Nor is monarchy the antithesis of freedom that liberalism makes it out to be.

There have been bad kings and good kings. If the definition of good government, is a government that provides society with basic laws (laws which govern public areas, laws which prohibit actions that hurt other people and threaten the order of society, and which provide a just manner for people to settle disputes with one another) and enforces those laws, but otherwise lets them live their own lives, then the English parliamentary monarchy has been overall a good government through history.

What about a government that fails to enforce the basic rule of law, which instead enforces thousands of petty regulations about minute aspects of everyday life, which taxes people to death, which actively seeks to undermine other social authorities such as parents in the home and clergy in the church, which wages war against the social, cultural, and moral traditions of the society it governs? Would that not be the very embodiment of a bad government?

That is the kind of government we have, now that the principle of democracy has triumphed over the principle of monarchy.

There are some who would have us take the principle of democracy even further and abolish monarchy even in its present ceremonial role. Let them not be deceived into thinking that they would be furthering the cause of freedom, justice, and good government by so-doing.

Aristotle argued that the best hypothetical constitution of a society would combine the principles of monarchy, aristocracy, and democracy, each balancing the others. What Aristotle wrote about in theory, materialized in the traditional English constitution of parliamentary monarchy, which we in Canada have inherited.

If we are ever going to see the constitution balanced again, and good government restored to this country, it will not be by allowing the principle of democracy to further overshadow the principle of monarchy. For this reason it is important to maintain the monarchy, even in its present ceremonial role. If the monarchy serves no other purpose it is as an anchor in the constitution of the past that will hopefully prevent the ship of state from drifting even further into the turbulent sea of progressive democracy.

Wednesday, September 29, 2010

The Trouble With Taxes

Nobody likes paying taxes. We grouse about them, even as we admit that they, like death, are inevitable. If we are honest with ourselves, we will also admit that they are necessary. Do we wish to live in a society without policemen, courts, jails, roads and other public infrastructure, and military defenses? If not, taxes are an essential part of our lives.

There are some who would argue that this is not so. Frank Chodorov, an American libertarian journalist of the early 20th century, wrote an essay entitled “Taxation is Robbery” that was originally published as part of his autobiography.(1) In this essay, Chodorov makes a very logical argument. First, he points out that taxation is by definition compulsory. Then he points out that if a “single unit of society” were to take our property by force, we would “unhesitatingly call the act robbery, a malum in se”. Robbery is defined by an ethical principle which the law “may violate but not supersede”. Therefore, taxation is by definition robbery.

That’s all nice and logical, but the problem is that something that sounds airtight on paper doesn’t always work out very well in real life. Lets imagine that Mr. Chodorov were actually living in the purely voluntary society that he dreamed of. He is sitting at home, minding his own business, when a couple of thugs break into his house, beat him up, and make off with all his valuables. What does he do about it? He goes to the phone and calls the police. He gets no answer, because there are no police. Since his society is purely voluntary, there are no compulsory taxes, and therefore no public revenue out of which to maintain a police service.

Mr. Chodorov leaves his house and by chance he comes across the men who robbed him. His recent experience with home invasion has taught him to never go unarmed and he is able to apprehend the men. Off he goes looking for a judge who will give him justice under the law. He never finds one, of course, for the same reason that the police did not come when he called them.

Eventually, one of the men he has apprehended asks him “Hey buddy, what do you think you are doing holding us captive like this?”

Chodorov responds “You have got a lot of nerve. You broke into my house, beat me up, and stole all my possessions”.

“Yeah, so what?”

“So what? It’s against the law.”

“There is no such thing as the law buddy. This is a voluntary society. Law is by definition compulsory. You cannot force another free individual to behave the way you want him too. There are no laws here.”

A society without taxes is a society without laws. Laws are as compulsory as taxes are. Indeed, they are even more so. Government can impose a voluntary tax. A sales tax on a non-essential item is voluntary. You don’t need the item, you don’t have to buy it, if you don’t buy it, you don’t pay the tax. You do not get to opt out of obeying the law however. You either obey the law or pay the penalty when you break it. If the compulsory nature of taxation makes it “robbery”, does the compulsory nature of law make all of us who live under law, slaves?

Samuel Johnson, the leading figure of eighteenth century English literature, saw the foolishness of this kind of liberal thinking when it was in its infant stage. In a pamphlet, originally published in 1775, entitled Taxation No Tyranny (2) Dr. Johnson argued that it was, a fundamental principle “considered, by all mankind, as comprising the primary and essential condition of all political society” that:

the supreme power of every community has the right of requiring, from all its subjects, such contributions as are necessary to the publick safety or publick prosperity.

Dr. Johnson wrote this tract in response to the rebellion of the American colonists, their position of “no taxation without representation”, and the arguments of their Whig supporters in Parliament. It is important to remember that while the tax Acts passed by Parliament following the Seven Years War were the catalyst of the crisis, the debate was not about the merits or demerits of any particular tax. The American colonies were challenging Parliament’s right (3), as a governing body, to pass taxes. It is to this, that Dr. Johnson was responding by arguing that the American colonies which had been founded by English citizens under a Crown charter, and who had enjoyed from the beginning British military protection of their settlements and trade, could not reasonably expect to enjoy the rights and liberties of English citizens while rejecting the duties of such.

Unfortunately, a question which Dr. Johnson did not raise, was at what point taxation goes beyond “such contributions as are necessary to the publick safety or publick prosperity” and becomes an abuse of government authority on the part of corrupt officials determined to squeeze every last drop of blood out of us possible. That such a point exists, there can be no question, and that we have crossed the line a long time ago in Canada, Britain and the United States, I suspect Dr. Johnson, were he alive today, would fully agree.

Government today, has expanded its role in society, far beyond its traditional functions of administering the law, providing for the common defense, and maintaining the infrastructure of the commonwealth. It now seems to see its role as being that of an all-purpose provider – providing us with education, health care, income security and everything else we may need or want. There are some who seem to see only a positive side to this – that with government providing education, health care, etc. these things are now universally available in a society, rather than limited to those who can afford them. There are, however, three major negatives which far outweigh this questionable positive. The first is that the quality of education and health care goes down when government is the provider. The second, is that the more the government provides for us, the more intrusive it becomes and the less freedom we have. (4) The third negative, and the one we are interested in here, is that it drives taxes through the roof.

The rise of the nanny state in the 20th and 21st centuries occurred, not coincidentally, simultaneously with the introduction of the income tax. Today, the income tax is something we are all used to, however much we dislike it. We look for every deduction possible, we race to get our tax paperwork in on time, we save our receipts for years in case the government audits us, and we grumble and complain about it, but we seldom think about how recent an innovation it is.

In Canada, the income tax was introduced in 1917. In the United States, the first income tax was passed in 1861 but the permanent income tax was not brought in until 1913 when the Sixteenth Amendment Passed. In Great Britain, the first income tax was introduced in 1799. (5)

The income tax raises far more government revenue than any other kind of tax. Why did governments in the English-speaking world wait so long to introduce them? The reason is that an income tax says something about the status of the people who pay it. It says that the product of their industry, whether they be farmers, businessmen, merchants or laborers, belongs primarily to the government rather than to themselves, that the government has first claim on their income, and will assert its rights by collecting a percentage of their income in taxes. This is the relationship, between a master and a slave. The English-speaking peoples, however, had long considered themselves to be free peoples, subjects but not slaves of their kings. Income tax was not for them.

Income taxes were therefore initially introduced as “temporary” measures to pay for wars. (6) In Canada, the Borden government brought in the income tax to raise funds for the first World War. They promised Canadians that the tax was temporary and would be lifted after the war was paid for. In Britain, Pitt the Younger made similar promises, when he introduced the first income tax at a time Britain was at war with revolutionary France. In the United States the Republicans brought in the first income tax to fund the North’s war with the South. (7)

The English-speaking peoples would never have accepted income taxes if they had not been introduced as emergency measures. The problem with government, however, is that things which begin as “temporary” often tend to become permanent.

What are the objections to an income tax?

First and foremost, there is the already mentioned objection that it is a form of slavery. This is not true of other forms of taxation. A poll-tax is the government charging you for the right to vote in elections. A head tax is the government billing you for the right to live under the security its laws provide. A sales tax is the government charging you for the use of the market system which is only possible because the rule of law protects property rights, enforces contracts, and penalizes fraud. (8). A tariff is the government charging people outside the country for access to a country’s domestic market. None of these taxes imply a master-slave relationship between government and people. The income tax, which asserts the governments prior “right” to the product of industry, does. (9)

Secondly, income tax enables the government to take much larger amounts from us than it otherwise would. The government can only charge so much in sales tax. If it raises the sales tax too high it drives people out of the legitimate market. Thus, sales taxes are set at a considerably lower rate than income taxes (10) and since the rate you pay in sales tax is charged on the price of what you are purchasing, a 5% sales tax will not take 5% of your income.

At present, the Canadian government charges 15% on the first $40, 970 of taxable income, 22% on the next $40, 970, 26% on the next $45, 080 and 29% on all taxable income over $127,021. Those are the federal tax rates and do not include the provincial income tax rates. In my province, Manitoba, the provincial income tax starts at 10.8% on $31, 000 of taxable income, goes up to 12.67% for the next $36, 000, and then to 17.4% on all income above $67, 000 (11) Thus, someone in Manitoba, is paying in federal and provincial income taxes combined, over 25% on their first $40, 000, and it gets considerably higher after that. (12)

That is obscene! At the lowest tier in the income tax system, we are already paying over a quarter of our income in taxes, in income tax alone. If the government were to try to take that much from us through other forms of taxation the rates would be so high they would never get away with it.

Thirdly, income tax requires a large government bureaucracy to collect the taxes, keep extensive records on people, and to investigate people if they are suspected of “cheating on their taxes.” Apart from being expensive, the problem with a bureaucracy like this is that it can be used by government to harass and persecute law-abiding citizens. (13)

A fourth objection to income tax, is that it punishes industry. Frank Chodorov argued that this is true of all forms of taxation and he may be correct on that, but it is not true of all kids equally. The income tax is particularly punitive of industry. The more productive you are, the more you earn, the more the government takes from you. This is a problem that could conceivably be removed by taxing all income at a flat rate but a flat tax will still have all the other objectionable qualities of an income tax.

From these objections it can be seen that the income tax is indeed an oppressive tax that demands of people far more than “such contributions as are necessary to the publick safety or publick prosperity” and reduces free people to the slavery which the American colonists claimed the significantly smaller customs and duties that the Parliament of the 1760’s and ‘70’s was reducing them to. It ought to be abolished, and replaced with a sales tax or tariffs, set at a rate high enough to raise revenue to support the essential functions of government, but low enough as to not seriously effect the economy. Government should be trimmed down to where it is small enough to be supported on these smaller taxes. It is there to provide society with the protection of the rule of law, with defences against foreign enemies, and the maintenance of roads and public properties. It is not there to provide every citizen with his every need and wish.

(1) Frank Chodorov, Out of Step: The Autobiography of an Individualist (New York: Devin-Adair, 1962). It can also be found as the second essay in the anthology The Paleoconseratives: New Voices of the Old Right, edited by Joseph Scotchie and published by Transaction Publishers (New Brunswick, New Jersey) in 1999, or as an etext at the Ludwig Von Mises Institute’s website: http://mises.org/etexts/taxrob.asp

(2) J. P. Hardy, ed., The Political Writings of Dr. Johnson, (London: Routledge & Kegan Paul, 1968) pp. 100-132. It can also be found online here: http://www.samueljohnson.com/tnt.html

(3) Poor old King George III is still much-abused in history books which often recycle uncritically, 18th century American claims that he was attempting to set himself up as a tyrant, but Johnson set the record straight ages ago:

The other position is, that "the crown," if this laudable opposition should not be successful, "will have the power of taxing America at pleasure." Surely they think rather too meanly of our apprehensions, when they suppose us not to know what they well know themselves, that they are taxed, like all other British subjects, by parliament; and that the crown has not, by the new imposts, whether right or wrong, obtained any additional power over their possessions.

(4) To demonstrate how this works, look at current anti-smoking legislation as an example. It is an obnoxious and oppressive abuse of power for governments to tell business and other property owners that they cannot decide for themselves whether to allow smoking on their property and in their own establishments. However, government can argue, when there is a universal, single-payer health system, that it has the right to pass laws like these, in the name of decreasing the cost to the public of treating emphysema and lung cancer. The more the government provides for the public, the more intrusive its regulations become, although it has disguised this loss of freedom by undermining the authority of other social institutions such as the family and the church.

(5) The tithe, in Ancient Israel and the Medieval Church, was not the same thing as an income tax, being paid to religious authorities rather than the secular power.

(6) In Britain and the United States, the first income taxes were temporary in a sense. Pitt’s tax was abolished by Addison, who replaced it with another one, itself abolished at the end of the Napoleonic Wars. Robert Peel brought the income tax back in 1842, again promising it was temporary, but this time it stuck. In the United States, the initial income tax was repealed in 1872, and temporarly brought back by the Democrats in the 1890’s until the Supreme Court ruled unapportioned income tax to be unconstitutional in 1895, and so the Sixteenth Amendment had to be passed before the income tax could be brought back in 1913.

(7) The income tax would become the preferred tax of progressives and socialists. It is interesting, therefore, that the first income taxes were brought in by Conservative governments in Canada and Great Britain, and by the Republicans, widely if probably erroneously, regarded as the American “conservative” party, in the United States. Let this be a warning to conservatives. What you introduce as a temporary measure in times of war, may be used by progressives for other purposes in times of peace

(8) Liberal economists, for all their talk of “laissez-faire” and the wonders of the “free market”, often fail to realize that the market simply would not function very well in the absence of law.

(9)In chapter 2 of The Communist Manifesto, entitled “Proletarians and Communists”, Karl Marx and Friedrich Engels list a series of measures that they regards as “unavoidable as a means of entirely revolutionizing the mode of production”. The second is “A heavy progressive or graduated income tax.” In practice, Communist countries reduced their populations to slaves of the Communist Party. Progressives in the West frequently offered the naïve opinion that this was because the Soviets or the Maoists or the Khmer Rouge were “not really Communists”, they were really fascists who were not living up to the ideals of Marx. In fact, however, universal slavery was a goal of Communism from the beginning.

(10) Unless, of course, the tax is on something like alcohol or tobacco, which the government wishes to punish you for using without actually declaring it illegal.

(11) http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html

(12)Astonishing as these percentages are, these are not the highest rates in income tax that people have had to put up with. Before the Reagan presidency, the top tax rate in the United States was 70%, from 1951 to 1963 the top tax rate in the USA was 91%, and it was even higher briefly in the 1940’s. These are not the percentages an American would have had to pay on his total income, only on the highest bracket of his income, but even still it is amazing to think that a government would have the audacity to charge so much. Consider, however, the following:

Another means of reducing inequality was to tax both the profits of a firm and the personal capital gains of the owners. This could raise an individual’s tax rate to astronomical heights, approaching or even exceeding 100 percent. The height of absurdity was reached in 1976, when Sweden’s most famous citizen, film director Ingmar Bergman, was arrested on charges of tax evasion. The case was complex, involving the director’s corporate as well as personal earnings. The bottom line was that Bergman was being taxed at a rate of 139 percent. - Thomas Fleming, Socialism, (Benchmark: Marshall-Cavendish, 2008). p. 73.

(13) Dr. Mario Pei, in his book The America We Lost (New York: World Publishing, 1968) points to the example of gangster Al Capone, who the state of Illinois had been unable to punish for his actual crimes, but was finally incarcerated by the American federal government on charges of tax evasion. This, Dr. Pei argued, was nothing to rejoice over, for while Capone was hardly a law-abiding citizen, what could be done to him, could be done to others. Compare Edmund Wilson’s autobiographical account in The Cold War and the Income Tax: A Protest (New York: Farrar, Straus, and Giroux, 1963).