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Published on February 15, 2025

Ever looked at your paycheck and wondered, “Where did all my money go?” Welcome to the realm of taxation—the system we rely on to fund public roads, hospitals, schools, and yes, maybe even a government coffee here or there.

Economist John Stuart Mill once described taxes as “the price we pay for civilization.”1 And while many of us feel a pinch at tax time, it’s also hard to imagine modern society functioning without a collective contribution to essential services.

Some Eye-Opening Tax Facts

  • Ancient Egypt: Farmers gave up portions of their harvest—try hiding grain under your bed if you wanted to evade taxes.2
  • Medieval Europe: Russia briefly imposed a beard tax, presumably aimed at encouraging a clean-shaven look.
  • Indigenous Canada: Communities often practiced trade and gift economies, focusing on reciprocity rather than imposed levies.3

At least we aren’t paying for the length of our beards today—some historical ideas are perhaps best left in the past.

Spotlight on John Kenneth Galbraith, a Renowned Canadian Economist

When discussing the value of taxes, it’s worth turning to John Kenneth Galbraith (1908–2006). Hailing from Iona Station, Ontario, Galbraith became one of Canada’s most influential economists—especially notable for his emphasis on balancing private prosperity with public needs.

  • Public Purpose: Galbraith believed in government’s power to foster social good through strategic public spending.
  • The Affluent Society: In his seminal work, he argued that when private wealth grows while public infrastructure remains underfunded, society becomes lopsided and less resilient.4

From a Canadian vantage point, Galbraith’s insights encourage us to see taxes not just as a burden, but as a strategic tool for building a more equitable and robust society.

Where Do We Draw the Line?

Taxes spark endless debate:

  • Are they a moral responsibility, funding communal well-being?
  • Or do they sometimes overreach, burdening citizens who could spend or invest that money differently?

Truth be told, our public services, from highways to healthcare, hinge on tax revenues. It’s also fair to question whether tax policy always achieves its intended goals. For every program that aids communities, there might be unintended consequences or inefficiencies. Balancing those tensions is at the heart of every modern democracy.

Final Thoughts: More Than Just a Paycheck Deduction

While taxes can feel like an extra line on your payslip (or a glaring total on your annual return), they’re also the infrastructure holding up countless aspects of Canadian life. Galbraith’s legacy suggests we look beyond the dollar amount and ask: Are our taxes making life better for everyone, or are we missing the mark?

  • If the funds support healthcare, education, and stable communities, perhaps the “price of civilization” can be seen less as a burden and more as a collective investment in our shared future.

Sources

  1. Mill, John Stuart. Principles of Political Economy. 1848.
  2. Graetz, Michael J. “The End of the Beginning: Taxation in Canada.”
  3. Carlos, Ann M. and Frank D. Lewis. Commerce by a Frozen Sea: Native Americans and the European Fur Trade. University of Pennsylvania Press, 2010.
  4. Galbraith, John Kenneth. The Affluent Society. Houghton Mifflin, 1958.