A few years ago the BC civil service had developed a serious employee morale problem - the result of constant cuts and a ruling class made up of political hacks and bullies. So the deputy ministers came up with a way to improve morale - they authorized directors and senior managers to give employees small gifts such as ball caps and sweater vests (purchased from the public service "store") as rewards for demonstrating good morale.

After an announcement about the big "roll out" of this amazing program the same brain trust sent out a notice to inform everyone who received this largess that they would need to claim a taxable benefit. Since doing the paperwork to claim a $7 ball cap as a taxable benefit is more hassle than the ball cap is worth the "rewards program" was viewed as punishment by anyone singled out as a recipient.

Needless to say, when the ruling class decide to tax the petty benefits given to small earners it can backfire badly. Let them eat cake?