Stop cutting taxes and start solving problems
Our politicians are obsessed with tax cuts. The next election will now feature the battle of the tax cuts, with the Canada’s New Harperment pushing for more GST cuts (and who knows what other plans to reduce the size of the federal government) versus Dion’s plan for more personal and corporate income tax cuts.
Meanwhile, poverty and homelessness will continue to worsen, public services will continue to erode, and greenhouse gas emissions will continue to rise. How exactly is it that our taxes are not “competitive”? And how is it that cutting taxes will improve our standard of living? Dollar for dollar, the best investments we could make right now would be in early learning programs and mitigation of climate change, not tax cuts.
Message to politicians: stop cutting taxes and start solving problems.
OTTAWA â€“ Stephane Dion says a Liberal government would cut income and business taxes, not the GST.
In a speech today to the Canadian Club of Ottawa, the newly minted Liberal leader outlined a three-pronged economic agenda for Canada: competitive taxes, aggressive international trade and massive investment in innovation and education.
Dion accused Prime Minister Stephen Harper of squandering Canada’s long term economic competitiveness with dubious policies aimed at boosting the Conservatives’ short-term electoral prospects â€“ such as reducing the GST.
The Harper government has already reduced the goods-and-services tax to six per cent from seven and may shave off another point in the budget later this month, as promised in the last election.
But Dion said an income-tax cut would be better for the economy and more appreciated by taxpayers who would rather take home bigger paycheques than save a penny on a cup of coffee.
Professor Dion, please present some evidence that income tax cuts will be better for the economy. If anything, income tax cuts will be more beneficial to those with higher incomes than an equivalent-sized cut in the GST. But neither tax cut will solve the problem of homelessness, environmental degradation, or even the hard-nosed challenges of improving productivity performance and stimulating innovation. I’m afraid that these real concerns of Canadians will get lost in the rhetorical battle over whose tax cut is better.