Thursday, December 01, 2005

Fuzzy Math and Voodoo Economics: a Tory Staple

Once again, Stephen Harper has taken a stand on an issue, and once again, he's come out on the wrong side of things. For a long time, Tories have said that while they don't particularly like the GST, that it's a relatively fair tax, and I can understand where that logic comes from. Now, Stephen Harper is dumping all over a tax created by one of his closest advisors, Brian Mulroney. Instead of pledging to reduce personal income taxes, which would be a huge help to middle and lower income families, Mr. Harper has chosen to pledge to knock one percentage point off the GST, and another after the next election. I doubt that low income people will see any benefit from this; they will save a penny here and there, but watch for Canada's Grinch to claw it back by cutting their GST rebate cheques. In reality, the people who will benefit the most from Harper's tax plan are the wealthiest in Canada, and frankly, they don't need the help right now. People who spend the most will save the most with this tax cut, and a family of 4, living paycheque to paycheque, are not going to go out and buy a new washing machine because they'll save a five dollars thanks to Mr. Harper's "generosity". No, the people who will benefit most from this joke of a tax plan are the people who have money to burn.

Now, Paul Martin has introduced a plan that delivers tax relief to the people who actually need it. We've seen prudent fiscal management in this country for a decade now, with the deficit being eliminated, and with years of balanced budgets and debt reduction. We have seen the Liberals announce plans to correct the imbalance in the EI system so that it is revenue neutral, and we are now seeing a responsible program of tax relief that will direct real, substantial tax relief to the people who need it the most. Getting substantial tax relief to those in the lower tax brackets creates a noticeable and meaningful difference in their paycheques, something anyone living from paycheque to paycheque desperately needs. Kudos to the Prime Minister and the Minister of Finance for continuing in the path of fiscal prudence.

4 comments:

Philip Paxson said...
This comment has been removed by a blog administrator.
Philip Paxson said...

I just find it amusing. Conservatives from the US do the same thing. They promise big tax cuts to everyone: note the small print. When it comes down to the line, these tax cuts save middle and lower class Americans almost nothing, as you said, "a penny here and a penny there". Bush's tax plan saved the average worker less than 100 dollars a year. The average millionaire saved around 43,000 a year. Obviously Canadian conservatives are no different.

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