Why Do We Tax What We Tax?

History. Convention. That’s the simple answer.
Governments have always needed money to function, even democratic governments, but until about 150 years ago, they have not needed a great deal of money – unless a war was being financed. At the time of confederation and beyond, the Canadian government depended almost entirely on tariffs and excise taxes – taxes paid at the border for goods brought in, but also taxes on beaver pelts and other furs exported.