The origins of perpetual national debt and income tax in Canada can be traced back to 1913 and 1917. In 1913, the Canadian government gave private banks exclusive control over currency and credit through the Bank Act. This led to rapidly increasing national debt, from $550 million in 1913 to over $2 billion by 1917. To pay this debt, the government enacted a temporary wartime income tax in 1917. While intended to be short-term, income tax has remained in place today. By losing control over currency and credit to private banks, the government became dependent on borrowing from them and incurring interest costs, leading to unsustainable debt levels that still impact Canada today.