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Budget musings

In brief, all these Conservative leaks have shown us what part of their Budget is the spending part. We’re going to soon find out what exactly they’ve done on the tax cuts front. There has been hints that these will be targeted at the middle class, and that they will be “permanent”. Michael Ignatieff is on record publicly saying he thinks any tax cuts should be targeted at the poor, and lower income Canadians, because tax cuts across the board will likely result in most people saving that money or paying off debt, not spending it to create stimulus and help the economy – an argument that Paul Krugman (Nobel Prize winner for Economics as well as NY Times columnist) has made, among other economists.

The other problem that’s been stated with this approach is that it seriously harms government revenues, and thus the ability for government to spend on future programs and needs – something that Harper and his Conservative ideologues would love to have happen.

I’ll wait as everyone else is about what is in the Budget before passing judgment on it, but if the tax cuts are across the board, are a large portion of this stimulus package, and are intended to be “permanent”, as Harper has hinted, I don’t think the rest of the Budget should be swallowed, and the Liberals should vote it down. Let the G-G decide what happens next – coalition or election.

1 comment to Budget musings

  • Roll Tide

    The tax cuts, are, I believe, for those making less then 80,000 dollars. That puts Harper well to the left of your hero Obama. Obama promised tax cuts went for those making $250,000, then, 200,000, then,150,000, then, 120.000.
    http://ca.youtube.com/watch?v=D0pNZ4Cycp4&feature=related
    Harper is still well below Obamas last promise. Maybe Obama will more to Harpers number.
    As for Paul Krugman, consumer savings is low, while debt is high. If the people want to use the tax break to pay down debt or save some money, good for them. He sounds like a typical liberal economist.
    The former Enron advisor has never liked tax cuts. He wants the greedy Government to have more of our money.

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