Results 1 to 9 of 9
  1. #1
    Senior Member RangeBob's Avatar
    Join Date
    Mar 2014
    Location
    Ontario
    Posts
    41,848

    Conrad Black: Trudeau's high-tax, high-deficit, low-growth plan is doomed

    September 21, 2018
    Ottawa, Ontario

    Canada’s tax policy is in shambles and its fiscal condition is deteriorating. In the 2015 election campaign, the NDP leader, Thomas Mulcair, tried to debunk the tradition that New Democratic governments are extravagant and fiscally irresponsible and promised a balanced budget, albeit with some tax changes favouring lower-income earners. The Conservatives, under Stephen Harper, were steady on course, and the Liberals said they would run a short-term deficit to cover job-creating infrastructure investments. They also said they would lose $3 billion by cutting the second tax bracket, on incomes between $45,283 and $90,563, from 22 per cent to 20.5 per cent, and gain it all back entirely by increasing the top rate.

    The government had only been installed for a few weeks when the finance department ominously stated that this exchange would not be net revenue neutral. In fact, in 2016, the first entire year of the Liberal tax changes, the second bracket tax reduction appears to have lost $817 million and overall personal income tax revenues declined by $5 billion. We were promised that the deficits would end in three years and we would be in surplus by now. Pre-electoral fiscal promises almost never come to pass, but these were unusually wide of the mark, as Conservative spokespeople warned.

    The tax on high income earners did not produce the $3 billion promised. Instead that tax category, the much-abused one per cent (most of whom got there by hard work and constructive astuteness, and not as most politicians endlessly imply, by being sociophobic exploiters, greedy speculator, and tax cheats), generated $4.6 billion less in federal taxes in 2016 than in 2015 and about 90 per cent of the decline is claimed by finance ministry sources to come from Alberta. In 2016, more than 30,000 fewer Canadians were in the earlier highest tax bracket, which began at $140,000. It always seems to come as a merciless surprise to politicians on the left, even the soft left, that most people consider that they have earned their incomes, that it is theirs as much as their private property is, and that governments do not have an unlimited, unchallengeable or unaccountable right to gouge an individual’s earned income.

    It is a stupefying mystery that anyone in Ottawa, elected or otherwise, who has anything to do with the tax system, does not realize the dangers of taxing at higher rates than prevail in the United States

    Authorized spokesmen for the Minister of Finance, Bill Morneau, have claimed that this is a once-only occurrence because people who had the option crowded as much as they could of their incomes into the pre-tax hike year of 2015, reducing 2016 revenues, and that they will bounce back in 2017. All agree that a substantial part of the problem is the heavy hit to Alberta incomes from the absurd oil price, partly influenced by the various pipeline fiascoes and partly by the sand-bag job conducted by British Columbia against Alberta’ efforts to export oil via B.C. ports. It is painful to see Alberta in this straitjacket, tormented by its provincial neighbour, now governed by an antediluvian Green-NDP coalition, and tormented by the ineptitude, if not the malice, of the federal government. The judicial rejection of the Kinder Morgan pipeline, which the federal government paid $4.5 billion for, has put Alberta under intolerable pressure and requires Ottawa to find some way to get the pipeline built or be convicted by the voters of being completely ineffectual, incompetent and of squandering $4.5 billion while assisting the silly hobgoblins who now run the B.C. government in turning innocent and long-suffering Alberta on the spit.

    It is a stupefying mystery that anyone in Ottawa, elected or otherwise, who has anything to do with the tax system, does not realize the dangers of taxing at higher rates than prevail in the United States. We went through this with the Kennedy-Johnson tax cuts in the United States in 1965 and again with the Reagan tax cuts in the 1980s. The highest personal Canadian income tax rates are now almost 20 per cent above U.S. rates, where more exonerations and deductions are allowed than in Canada, and many of the more prosperous states such as Florida and Texas have no personal income taxes. Comparatively high tax rates invariably cause what are delicately called “behavioural changes,” which means some departures of wealthy people from the country, more ingenious and strenuous tax avoidance measures, and possibly some outright evasion as well.

    The Trump tax cuts of 2017 have not really been reflected in published Canadian tax income reports yet, and the impact of the reduction of corporate tax rates from 35 per cent to 21 per cent in the U.S. last year could, as William Watson published in this newspaper on Tuesday, cost Canada $50 billion. The Trump tax cuts, which rival or possibly surpass the earlier Johnson and Reagan reductions, have, contrary to the gloomy predictions of the now rather mindless globalist media such as the Economist magazine, almost paid for themselves. This is the result of the counter-behavioural changes, as people spend and invest more when rates are reduced. It is not a zero-sum game, but the world only discovered that when the after-effects of the First World War and the Great Depression obliged all major countries to engage in deficit spending: devaluing the currency while increasing the money supply and spreading it to the recently dispossessed. John Maynard Keynes and the-then U.S Federal Reserve chairman, Marriner Eccles, argued for deficit-financing of recoveries and accumulation of surpluses in times of prosperity. In practice, the first, but little of the second, has been applied and the demonetization of gold has produced a relentless slide in the purchasing power of every currency.

    Canada has now chosen the worst of all possible options: higher taxes, substantial deficits and low growth, with a lot of belligerent talk about retreating from NAFTA to World Trade Organization tariffs. The HST remains unchanged. I have been incanting, almost until I am blue in the face, that we should cut all income taxes to below U.S rates and raise the HST on all voluntary spending. This effectively makes paying tax almost voluntary, and induces behavioural changes toward increased purchases of goods and services within the economy, increased savings, and less attention to the most ingenious methods of avoiding tax and moving assets and cash flows out of country.

    Seven of our ten provinces now have top tax rates above 50 per cent; this is state larceny and incompetence. Other than in an extreme national emergency, the state has no right to more than half of anyone’s income. If the population elected to operate defined essential government services from a service co-operative administered by private-sector standards of efficiency, what are now public-sector costs would be reduced by probably half, the savings could be rebated to the public with the low-income earners favoured, and the whole world would send observers to see the Canadian economic miracle. It isn’t going to happen because it is too radical and impossible to sell in advance or execute incrementally. But no government that has high taxes, low economic growth (they go together and are inseparable) and large deficits is going to succeed.

    https://nationalpost.com/opinion/con...plan-is-doomed

    (126 mostly supportive comments at link)


    Alternative points of view
    https://www.theglobeandmail.com/poli...d-by-evidence/
    https://nationalpost.com/opinion/des...-reality-check

  2. The Following 12 Users Like This Post By RangeBob

    + Show/Hide list of the thanked

    08fj3006 (11-09-2018), Billythreefeathers (11-08-2018), Eddmac (11-08-2018), FallisCowboy (11-08-2018), firemachine69 (11-08-2018), kennymo (11-08-2018), killer kane (11-08-2018), M1917 Enfield (11-09-2018), Rory McCanuck (11-08-2018), Run 'n' Gun (11-08-2018), Swampdonkey (11-08-2018), VooDoo (11-08-2018)

  3. #2
    Decided that being pink is in
    Join Date
    Mar 2017
    Posts
    3,033
    I wonder how many of the Laurentian Elites have their money stashed offshore in tax free havens, while the rest of us get shafted.

  4. The Following 3 Users Like This Post By FallisCowboy

    Eddmac (11-08-2018), firemachine69 (11-08-2018), killer kane (11-08-2018)

  5. #3
    Canadian ForcesMember Billythreefeathers's Avatar
    Join Date
    May 2012
    Location
    Vesper Sask
    Posts
    11,606
    Quote Originally Posted by FallisCowboy View Post
    I wonder how many of the Laurentian Elites have their money stashed offshore in tax free havens, while the rest of us get shafted.
    all of them and in US dollars
    CSSA

  6. The Following 3 Users Like This Post By Billythreefeathers

    Eddmac (11-08-2018), firemachine69 (11-08-2018), killer kane (11-08-2018)

  7. #4
    Senior Member M1917 Enfield's Avatar
    Join Date
    Aug 2013
    Location
    Eastern Ontario
    Posts
    7,198
    I had a discussion over dinner at a friend's place last weekend with 5 other couples in attendance and when discussion shifted to Trump and the mid terms in the USA and what a major embarrassment Trump was, I said who cares about the USA, their economy is doing just fine. I then tried to shift the discussion to how Turdo was even more of a embarrassment to us and was ruining the country and I was then shocked to the rest of the groups glowing support of Turdo and his current policies and how I was the only one besides my wife who thought the Lieberals and Turdo are a disaster for Canada and our future!

    They are also fine with the Lieberal's taxes and also the carbon tax as they feel it does not affect them anyhow, same deal with the illegal immigrants flowing over the border, they think that they are needed to pay for their future government provided healthcare and pensions. As most of them work either for the Feds or in jobs with a lot of government employee customers they think their future is secure.

    Most professional Canadians and those living and working in the NCR have no idea or are willfully blind to the Lieberal's continued ruination of this country.
    I live among lots of sheeple and dim witted who like to think they are good Canadians for voting Lieberal

  8. #5
    Canadian ForcesMember Billythreefeathers's Avatar
    Join Date
    May 2012
    Location
    Vesper Sask
    Posts
    11,606
    Quote Originally Posted by M1917 Enfield View Post
    I had a discussion over dinner at a friend's place last weekend with 5 other couples in attendance and when discussion shifted to Trump and the mid terms in the USA and what a major embarrassment Trump was, I said who cares about the USA, their economy is doing just fine. I then tried to shift the discussion to how Turdo was even more of a embarrassment to us and was ruining the country and I was then shocked to the rest of the groups glowing support of Turdo and his current policies and how I was the only one besides my wife who thought the Lieberals and Turdo are a disaster for Canada and our future!

    They are also fine with the Lieberal's taxes and also the carbon tax as they feel it does not affect them anyhow, same deal with the illegal immigrants flowing over the border, they think that they are needed to pay for their future government provided healthcare and pensions. As most of them work either for the Feds or in jobs with a lot of government employee customers they think their future is secure.

    Most professional Canadians and those living and working in the NCR have no idea or are willfully blind to the Lieberal's continued ruination of this country.
    Good grief

    do these people work in the private sector or are they government employees? immune to inflation, lay offs and nice indexed pensions?

    SEEN,, the future is never secure especially with low no input thinking
    CSSA

  9. #6
    Senior Member M1917 Enfield's Avatar
    Join Date
    Aug 2013
    Location
    Eastern Ontario
    Posts
    7,198
    Quote Originally Posted by Billythreefeathers View Post
    Good grief

    do these people work in the private sector or are they government employees? immune to inflation, lay offs and nice indexed pensions?

    SEEN,, the future is never secure especially with low no input thinking
    Both, two couples had dentists as one of the spouse with the other working for the federal government, another was a lawyer whose wife also worked for the public service, another runs a business with their sole customer all 3 levels of government including the city of Ottawa (translation and language training services) with his other half also working for the feds and the last besides us was another federal government worker. My wife is a Doctor and I retired early in life, but I did a lot of contract government work. We all know each other well socially through our kids and work.

    I often hear reported that at least 80% of all jobs in the NCR are either direct or indirect (supporting industries/trades/professions) government payroll financed positions.
    I live among lots of sheeple and dim witted who like to think they are good Canadians for voting Lieberal

  10. #7
    Senior Member Doug_M's Avatar
    Join Date
    Feb 2013
    Location
    Nova Scotia
    Posts
    11,483
    Who's the lemon man?
    Spread the word on petition e-2341 (Democratic process). Send people to http://oneclearvoice.ca which takes them directly to the petition.

  11. #8
    Senior Member RangeBob's Avatar
    Join Date
    Mar 2014
    Location
    Ontario
    Posts
    41,848
    Quote Originally Posted by Doug_M View Post
    Who's the lemon man?
    CNN's Don Lemon

  12. #9
    Senior Member M1917 Enfield's Avatar
    Join Date
    Aug 2013
    Location
    Eastern Ontario
    Posts
    7,198
    Quote Originally Posted by Doug_M View Post
    Who's the lemon man?
    10-29-18-lemon.jpg
    I live among lots of sheeple and dim witted who like to think they are good Canadians for voting Lieberal

  13. The Following User Liked This Post By M1917 Enfield

    joe6167 (11-09-2018)

Similar Threads

  1. GOLDSTEIN: Trudeau's high horse a nag
    By Rory McCanuck in forum Non Firearms Politics
    Replies: 6
    Last Post: 11-15-2018, 07:40 AM
  2. Replies: 16
    Last Post: 08-22-2018, 07:24 PM
  3. Trudeau's disapproval rating high: Poll
    By Billythreefeathers in forum Non Firearms Politics
    Replies: 36
    Last Post: 05-04-2018, 08:17 AM
  4. Replies: 6
    Last Post: 03-11-2018, 09:52 AM
  5. Ontario launches plan to teach high school kids financial skills
    By soulchaser in forum Non Firearms Politics
    Replies: 36
    Last Post: 03-24-2017, 02:31 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •