Your Tax Dollars at Work
Alex's ongoing exposé of Government gaffes, goofs and graft...
FLASH: Dateline Ottawa: The Government dollar has hit a new high against the Canadian dollar.
It was announced recently in Ottawa that the existing $64,000 per year salary was equivalent to the $106,000 new salary level suggested for MP's. As a result of the hidden tax free expense allowances included with the old salary its purchasing power was actually 66% higher on an after tax basis than stated. This would put the government salary dollar at $1.66 Canadian versus the normal Canadian wage earner. It is highly recommended that in future wage discussions employees insist on receiving MP dollars rather than the puny local currency.
Wage negotiators are advised as well to push for employer's contributions to employee pension funds be made in MP dollars which are a considerably stronger currency. These dollars have a full four to one exchange ratio with the Canadian dollar. While ordinary Canadians are allowed a maximum of one dollar from their employer to match their pension contribution MP's are allowed four dollars from their boss per employee dollar.
However, all is not well on the gravy train. Some MP's have raised the question of inflation indexing of their pensions now that we are in an era of low inflation. The solution being considered is to link the pensions to the inflation rate of the Indonesian currency.
alex@alexdoulis.com 416 955 9511
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