Well it seems we can both, at the very least, say that the system unfairly benefits the extremely wealthy.
However, I wouldn't characterize paying taxes as "working for the government". As corrupt and inefficient as it may be, they do end up providing a large number of services to the people, which are in turn required to sustain our wealth. Notable amongst these are transportation infrastructure (yes, it's shitty, but its there), education, health care, etc. At the same time, I am not in any way defending our current method of spending. I think it is incredibly inefficient to the point where it is bordering on ineffective. However, changing the way we tax, rather than how we spend it, won't solve this problem, IMO.
As well, indeed an incredible amount of these taxes are distributed in the form of "social programs" designed to benefit those less fortunate (this may not just be in regards to economic circumstances). Last I checked the total amount, when municipal, provincial, and federal funds were accounted for, it hit several hundred billion dollars per year.
My reaction, is probably the same as yours. With all of these funds, there should be no poverty left! Unfortunately, due to the divisive nature of our society, with our provincial and municipal fiefdoms, this money is used very very inefficiently.
However, this should not be taken as an argument against social spending, but an argument FOR
effective social spending. The current system is completely dysfunctional, and needs to be overhauled, from top to bottom. That does not mean we should leave Canada's unfortunate out to dry.
The problem with instituting a flat tax system is that for the most part this flat tax would not affect the majority of Canadians, who currently sit in the bottom tax bracket. Though you may be correct in saying that the freeing up of capital amongst the upper tax brackets would "produce more wealth", the inherently poor distribution system in the market would result in virtually all of the benefit of this going to said upper tax brackets (as has been the case for the last 20 years).
This quote from a 2000 piece from the Canadian Centre for Policy Alternatives summarizes the point:
The flat tax of 17% being proposed by the new federal party would be of little benefit to the majority of Canadians, most of whom already pay only 17% (a majority of Canadian taxpayers make less than $30,000, the income at which the current second tax bracket kicks in). Moreover, in order to finance what amounts to a huge tax cut for Canada's wealthiest income earners, the flat tax would put many of the public programs Canadians cherish at serious risk.
Progressive taxation recognizes that the market, left to its own devices, does a poor job of distributing incomes. Given the fact that the market is producing more and more inequality, we need a progressive tax system to mitigate the growing gap between society's haves and have-nots more than ever before.
http://www.policyalternatives.ca/index.cfm?act=news&do=Article&call=757&pA=DA794529&type=2
They also point out that raising the level at which taxation would begin would be of little benefit overall, especially when compared to the detractors of a flat tax system.
This is the reason that a progressive tax system is in place, and is needed. If left to it's own devices, market economies have shown an amazing ability to channel wealth almost exclusively to the wealthy. This is pointidly shown by the incredible disparties that have been growing in the US between rich and poor, to the point where I have read several articles predicting the death of the American middle class.
It is unfortunate that your personal circumstances have put you into an awkward situation in regards to the tax situation, however once again this is simply a good argument for restructuring the current system to better reflect the realities of society (ie lift the burden from the lower and middle classes, and redistribute it to those who have actually had a net benefit from our growth).
Finally, in my view, the regulatory burden, while cumbersome, is important in protecting the rights, and the very lives of ourselves, and our families. Given the massive lapses in safety and oversight that currently occur, even within this system, one could only imagine what would occur if companies were not required to maintain at least a baseline. Once again, I am not arguing the system is perfect. In fact, I will be one of the first to stand up and say it needs drastic change. Once again however, completely scraping it does not seem like a beneficial move, as it does have a large number of useful qualities; rather it needs to be refined into something more effective and less cumbersome.
*edit* This discussion between a_majoor and myself should almost be moved to a new thread