Posted by Nick Falvo under Conservative government, corporate income tax, economic literacy, fiscal policy, income tax, NDP, party politics, progressive economic strategies, social democracy, taxation.
August 9th, 2013
A recent online article suggests that Federal NDP Leader Thomas Mulcair is opposed to increasing federal tax rates. I find this quite surprising.
According to the August 8 article:
Mulcair seemed surprised when he was asked if taxes would go up under an NDP government.
“You’re the first person who’s ever asked me that,” he said, adding quickly that they most definitely won’t.
“I am categorical on that,” he said. “Several provinces are now at the 50 per cent rate. Beyond that, you’re not talking taxation; you’re talking confiscation. And that is never going to be part of my policies, going after more individual taxes. Period. Full stop.”
Mr. Mulcair appears to be under the impression that taxation across Canada has been increasing in recent years.
I have a different interpretation of recent tax trends. Consider the following:
-In the early 1980s, Canada’s top federal income tax rate was 43%. Today, it is 29%.
-In 2000, the federal government’s general corporate income tax rate was 29%. By 2012, it was 15%.
-In 2006, the marginal effective tax rate on new business investment across Canada was 33%. As of 2014, it will be 17% (the lowest of all G-7 countries).
-In 1999, total taxes as a percentage of Canada’s GDP (including all federal and provincial taxes) was 36%. By 2010, it was 31%.
It is no secret that the Liberal Party brought in substantial tax cuts while in office before Mr. Harper. Nor is it a secret that this trend has accelerated since Prime Minister Harper took office in 2006.
Mr. Mulcair and his officials might wish to consider articulating a more accurate depiction of tax trends in Canada. Doing so might allow voters to have a more informed debate about public policy.
UPDATE (Aug. 12, 2013): The present blog post has caught the attention of Aaron Wherry at MacLean’s. He writes about it in a piece entitled Have Conservatives won the tax debate?
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