Anti-Growth Tax Agenda

[FiveParadox]

The Honourable John McCallum, P.C., M.P., the Member for Markham—Unionville and the Finance Critic for Her Majesty's Loyal Opposition, on March 17, 2006, released a statement concerning the agenda of the current Government of Canada — one that should concern every citizen of Canada. Mr. McCallum addressed the anti-growth tax agenda of the Conservative Party of Canada.

Hon. John McCallum[/b], P.C., M.P.,]With the exception of the Prime Minister himself, I suspect that every living, breathing economist in the land will agree that the Conservatives' proposed GST cut financed by higher income tax is anti-growth.

The economics is not complicated. If government reduces the GST, which is a tax on consumption, then people consume more. If government reduces income tax, which is a tax on work effort, then people choose to work more. Also, an income tax cut has a greater positive effect on saving and investment than a GST cut. Therefore, a GST cut financed by higher income tax will cause people to save, invest and work less. The result is lower economic growth and productivity. It’s that simple.

Click here to read the entire article in English.
Cliquetez içi pour lire l'article entier en français.

:?: Sources
1. Click here for the Web site of the Liberal Party of Canada.

:!: Revision : Resolved a formatting error.

 

[Finder]

Well almost all the parties don't really see the big picture in this. On paper we all save money with the 1 or 2 percent tax cut on GST. Put in practice, excpecially since it's will be 1% at a time, we will not see any change in the prices of things. Infact most stores will charge the same thing but keep the 1% for themselves. This cut will not benfit the consumers, with the pennies we are supposed to save, but that of business and coperations. At what cost will this come. The revenue from the GST, the millions of lost funds, will not be able to be used to perhaps, invest in our puplic heath care and will allow the current problem with puplic health care get worse making a man made crisis in health care. In deed many social programs could be at risk and to make things worse for those economic conservatives, we won't have the extra money to pay off the debt.

removing a tax which could be used to do a hoast of things including debet payment is economic stupitity! This tax should only be cut once we are out of debt

 

[FiveParadox]

I have said it on other forums, and I am going to say it again here.

When one fifth of our national revenue goes to paying the interest on the debt, we shouldn't even be considering tax cuts. If anything, we should be considering tax increases.

 

[Finder]

Re: RE: Anti-Growth Tax Agenda

I have said it on other forums, and I am going to say it again here.

When one fifth of our national revenue goes to paying the interest on the debt, we shouldn't even be considering tax cuts. If anything, we should be considering tax increases.

though increasing tax's, well at least the wrong one's may retard economic growth. But reducing them when we are doing well is just....... Well I don't know what Harper is thinking besides having a election promise which sounds good but does very little.

 

[Toro]

I'm not sure what you are getting at 5Par. Though an income tax cut is better, a GST cut is not anti-growth. However, an increase in taxes for the Canadian economy - as you suggest - certainly is.

I would agree that given a range of options, an income tax cut (in this case) is better than a GST tax cut. But since the Tories promised to cut the GST, then they should.

 

[FiveParadox]

I was not asserting that the proposed GST cut would be anti-growth; I was citing the Honourable John McCallum, P.C., M.P.. Since he was the Minister of National Revenue for quite some time, I would put a good deal of faith in his opinions regarding the economy, though.

 

[Sassylassie]

If elected Officials would stop stealing and missappropriating tax payers' dollars think of how much money would be saved and could towards the debt. Not to mention giving money via grants to their personal friends and Business that support. Now on to the gravy train of expenses a couple more million spend on the hogs. It's criminal what elected Liberals have done with our tax dollars. I wonder if the culture of greed and feed the hogs will continue with Harper and his minuns.

 

[Jersay]

Tax increase. Five, you have great idea's but man, no more talk on these tax increases man. Even though we do have to pay down our debt.

 

[FiveParadox]

Haha, better hope I never become Prime Minister of Canada, Jersay.

Not only would the GST tax increase to 14 % ...

But I would introduce the GST2 tax (starting at 18 %, on top of GST).

 

[jimmoyer]

FiveParadox, have you ever grown up with the idea
that a person's income should not have more than
1/3 taken away, and that often all the taxes in
aggregate do just that ?

Have you grown up with the idea that government
and its bureaucracy are the most wretched instruments
for redistribution of wealth ?

 

[FiveParadox]

No, jimmoyer, I think that that the amount of one's income taken away is not particularly relevent so long as one has what one needs. If the income consumed by taxes is put to good use, then in my opinion, it is a worthy consumption. Of course, there are arguments that some of the programs funded by the current Government of Canada and its predecessors do not address these issues efficiently — however, with the proper administration, I think that tax-funded programs could be quite worth the income consumed.

 

[Jersay]

Oh god, more taxes.

 

[FiveParadox]

:!: Note : The topic of tax increases, or references to any previous posts on this thread relating thereto are, in the interest of the sanity of our dear Jersay, hereby deemed to be invalid, unenforceable and no longer fit for reading on this thread.

 

[Jersay]

Thank you

 

[Sassylassie]

Five when you enter the big bad world of "The Real World" you will need an Epie pen, cause the shock or reality is gonna kill ya. Why should the damn government take what they want and let me live with a meager amount based on what they deem is enough for me to live? Isn't that called Communism.

This Liberal party you worship, some of them have stole from Canadians and you want us to blindly follow them to the pig trough. Have you ever paid 52% of what you earned in taxes to see it miss spent by your revered party, no. Well when your turn comes you won't like it.

 

[FiveParadox]

:? People are in bad moods today, methinks.

Nonetheless, no, I have never had that amount of my income consumed in taxes; however, the Liberal Party of Canada (whom I do not worship, by the way), was alleged to have taken approximately two million dollars through the Sponsorship Program — amounting to approximately 0.001 % of the revenue in one year. Moreover, that amounts to an approximate cost of six cents per citizen of Canada, total.

No, I do not think that people should "voluntarily follow them to the pig trough," and I rebuke the assertion. I was simply trying to say that with the correct administration of programs (which both the Conservative Party of Canada and Liberal Party of Canada have demonstrated in the past is not their forté), the consumption would be worth it — in fact, the correct administration of the programs wouldn't require as much of the revenue as is currently required, either.

 

[Sassylassie]

Nope not in a bad mood at tall. Five, your belief in the Liberals fightens me, your doctorine is Communist and my ancestors died so I wouldn't be have speak German. I'm not going to start calling candy Bon Bon ever! Sniff, Do I smell private school?

 

[FiveParadox]

That's nice.

No, my doctrine most certainly is not communist; I simply see a value in having tax dollars (a significant portion — nowhere near 52%, mind you) go towards programs that can benefit the entire nation. Now, as I have said above — I don't think that this has yet been done correctly, but there is potential for massive benefits from the appropriate administration of tax dollars.

 

[sanch]

Canada does have the resources to sustain its social programs. And to me creating a system of efficiency to manage the resources for these programs should be a number one priority. I don’t think one has to be partisan over this. It’s an integral part of our identity.

I would agree with Five that both the liberals and conservatives have squandered the country’s wealth. That is why we need an accountability act as that is the first step along the road to fiscal responsibility.

 

[FiveParadox]

Oh, yes, the fabled Federal Accountability Act — the one that says that a Prime Minister of Canada should not have the authority to overrule the Ethics Commissioner of Canada, right? Haha.

Sometimes I think that the Governor General should just appoint the NDP. Just for kicks, see how it works out. Who knows, maybe if we saw someone who hasn't exhibited corruption "to the extreme", it could restore some confidence in the Parliament of Canada.