[Newsbot]

Title: Tax hikes or lower transfers Ottawa's only deficit solutions
Category: Political
Posted By: hurley_108
Date: 2011-02-28 13:03:54
Canadian

[hurley_108]

So what are the Conservatives going to do? Cut transfers like Chretien did? Hike taxes like they accuse Iggy of wanting to do? Or are they going to keep running deficits (it seems that's just fine as long as you're Conservative but god forbid the Liberals should run a deficit)?

[DrCaleb]

You'd think they'd think of 'cut spending', but that would be something a real conservative would do.

[Curtman]

hurley_108 hurley_108:

So what are the Conservatives going to do?

Give tax cuts to large corporations of course! It worked so well when George Dubya Bush did it.

[BigKeithO]

The federal Conservatives certainly do not seem to be fiscal concervatives!

[hurley_108]

DrCaleb DrCaleb:

You'd think they'd think of 'cut spending', but that would be something a real conservative would do.

Where?

[Canadian_Mind]

Maybe raise GST back up to 7%?

[hurley_108]

Curtman Curtman:

hurley_108 hurley_108:

So what are the Conservatives going to do?

Give tax cuts to large corporations of course!

Yea, because they're definitely goign to hire a bunch more people who will then save us from the deficit with their income taxes. They won't just sit on it to bump profits and share price or pay a dividend.

$1:

It worked so well when George Dubya Bush did it.

Forget Bush. No, seriously, just forget about him. He was horrible and wrong, but he's gone now and to dwell is to distract.

[hurley_108]

Canadian_Mind Canadian_Mind:

Maybe raise GST back up to 7%?

That would be to admit it was wrong to cut it in the first place, and while all teh economists would say it's the right thing to do, it would be political suicide so it won't happen.

[DrCaleb]

hurley_108 hurley_108:

DrCaleb DrCaleb:

You'd think they'd think of 'cut spending', but that would be something a real conservative would do.

Where?

Everywhere. People like to laugh at King Ralph, but he did get us back in the black ink. The cuts were hard, and unilateral. And then he cut 5% more. That's how to eliminate the debt. No different than if it were your own household.

[Canadian_Mind]

hurley_108 hurley_108:

Canadian_Mind Canadian_Mind:

Maybe raise GST back up to 7%?

That would be to admit it was wrong to cut it in the first place, and while all teh economists would say it's the right thing to do, it would be political suicide so it won't happen.

Well once they have a majority, if they get it, then they can raise the GST to raise funds, have 5 years to get themselves into a position where they can lower the GST, then lower them back down to 5% if not eliminate it outright before the next election.

[Wada]

Start taxing the chuches.

[hurley_108]

DrCaleb DrCaleb:

hurley_108 hurley_108:

DrCaleb DrCaleb:

You'd think they'd think of 'cut spending', but that would be something a real conservative would do.

Where?

Everywhere. People like to laugh at King Ralph, but he did get us back in the black ink. The cuts were hard, and unilateral. And then he cut 5% more. That's how to eliminate the debt. No different than if it were your own household.

The difference seems to be, if the article's claims are true, that the overwhelming majority (71%) of the federal budget is transfers to provinces and debt servicing. There's only 21% from which to cut that's really federal services (the rest being defence), and that they'd have to cut it all entirely out just to eke out a $3 billion surplus.

The provinces actually deliver services like education and health care and public infrastructure that cost big bucks (cities too), where cuts to services can be made to effect actual budgetary change.

To refine the household analogy, the kids are the provinces, the parents are the feds, and for mom and dad to fix their budget, the easiest way is to go after the allowance.

[Lemmy]

Economists definitely would not say to raise the GST back to 7%. Raising the GST won't raise revenues. We're already at the peak of the Laffer curve. Too much of the federal budget is already funded on the backs of consumers. The solution is a blend of increasing taxes on the wealthy and cutting the scope of government. No one earning under $200K should have to pay ANY personal income tax. Combine that with modest tax increases on corporatations and we'd be swimming in cash.

[hurley_108]

Lemmy Lemmy:

Economists definitely would not say to raise the GST back to 7%. Raising the GST won't raise revenues. We're already at the peak of the Laffer curve. Too much of the federal budget is already funded on the backs of consumers. The solution is a blend of increasing taxes on the wealthy and cutting the scope of government. No one earning under $200K should have to pay ANY personal income tax. Combine that with modest tax increases on corporatations and we'd be swimming in cash.

I've read different.

Edit: It may be a very different beast to raise it back to 7 from 5, but everything I read said economists were overwhelmingly opposed to the cut.