Looks like we can afford those tax cuts...
Well, well, it looks like we ended up with about $14 billion in loose change behind the sofa cushions for the last fiscal year. By my reckoning we could have afforded that second GST reduction, a return to the lower incomes tax rates enacted in 2005 and a business tax cut too.
I guess the real question is whether we'll share in that $30-40 tax brak evenly, or if it will be handed out as yet another spending program in tax cut clothing.
posted by Matt at 6:50 PM
6 Comments:
A tax cut would be nice, and PMSH has said, I believe, that he would reduce the GST further before the end of his mandate. (I take that to mean 4 years)
Given that, and given our HUGE DEBT, so long as all the surplus goes to paying down the debt I'm not too worried. I don't think that cutting taxes while we leave a debt that will hang around for generations is a very conservative thing to do.
September 27, 2007 8:15 PM
It's true, $30-40 is really chump change. But at least it's something.
September 28, 2007 3:22 AM
Based on the way he's been talking about "continued" income tax cuts when there hasn't been one to speak of, I'm pessimistically predicting more mislabeled bribery.
Prove me wrong, Steve-o. Prove me wrong.
September 29, 2007 1:27 PM
Jon - The GST commitment was for a 2-point reduction in 5 years (NOT before within one mandate) but I don't see any reason not to deliver it now.
As for paying down debt, it's certainly better than increasing spending, but there are two points.
1) There's a good arguement that cutting taxes (resulting in an increasing GDP) is a more efficient way to reduce debt to GDP ratio than debt repayment.
2) The gov't isn't saying that they need to run surpluses to reduce debt. That would be a commitment to the course we're on. Rather, much like the Liberals, Ottawa claims we can't afford a tax cut, then rakes in a massive surplus.
Raphael - don't count your $30 yet. The policy of using debt savings to reduce taxes was introduced last November, but the 2007 budget did not produce any tax cuts.
September 29, 2007 5:43 PM
$30-$40 per person? Sounds like if they keep this up they'll be able to afford about, oh $700 per person.
October 10, 2007 8:14 AM
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October 10, 2007 8:15 AM
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