Aside from the fact that there is no multiplier in spending tax dollars
Of course there is. That's the whole purpose behind lots of government funds. My company get's R&D tax credits from the Feds. Some from the province too. All my hours are tax deductible, to the tune of about 35% of my salary. Up to the first $3 million in qualified expenditures. After the $3 million amount is reached, it drops to 20% on everything else.
They're called SR&ED credits. These tax credit subsidies are valuable to the government, because for every $1 the government gives up in taxes, they get back $1.17 roughly in the taxable spin-offs. Companies hire more employees, and buy more equipment, and all of that generates more revenue for the government.
So, let's look at the CBC data we have and do some simple math. $1.7 billion turned into $3.7 billion. Let's use a constant population to make it easy, say 34 million. That means that for the $50 that they collected from each of us, it generated nearly $109 in economic activity. That's a multiplier.
We sort of need the RCMP and the military whereas there are plenty of private broadcasters out there that cater to a wide variety of tastes.
We have city cops here. Why do we need the RCMP? There's some out there who would probably even say we don't need them at all. So who get's to pick and choose what they pay for? Some people would disagree with you, and if you take your money back, what's to stop others from taking their money back? I'm pretty sure Gerry says no to death, so funding wars is likely out for him, and lots of others too.
The first thing to notice about the CBC’s federal subsidy of $1.1 billion is that if this sum had remained in taxpayers’ wallets, they too would have generated “economic spin-offs” by investing and spending their own money. This simple fact, however, is never taken into account by this kind of study.
Because the option isn't to simply return a portion of their taxes....whomever wrote the article should know that... CBC funding is funded from general tax revenue, at the discretion of the government. If the CBC isn't funded, then the government simply spends it on something else. Sure, maybe they give a tax break, but they have to choose that, and they have multipliers for that too. The Deloitte analysis used the average multiplier our government uses when weighing the economic activity created by CBC. They looked at the activity for the money that would normally have funded CBC, if it was distributed to other programs. That was part of their analysis.
As for the tax dollars ending up growing in our hands? George W. Bush tried giving refund checks to stimulate their economy, and it failed. And he gave Americans over $600 per person, $1200 to couples and an extra $300 for each dependent.
CBC is funded significantly less than that. But hey it would buy you a liter of rum if you got it back.
Indeed, if subsidizing the CBC produces such significant economic spin-offs, wouldn’t the government have every reason to borrow money to create two or even three public broadcasters? By pushing the argument in this way, it becomes evident that it simply does not hold water.
Jesus, this guy can't have taken introductory economics. Is he an economist Captain Morgan???
He knows about zilch when it comes to the concept of utility. And pushing it that way shows that his argument is pure bunkum.