The federal government has increased spending at a rate faster than inflation since

Enough.
The inflation rate is a crock statistic that under-states the devaluation of purchasing power anyway.
You should get a better argument.

Aaron Unruh spake:

It’s better to handicap their ability to increase spending by forcing them to raise taxes (and take the political hit) to finance their own free-spending ways.

You are making a grave oversight: federal expenditures can be financed through more debt and by increasing the money supply.

In Canada, Conservatives should cut taxes hard & deep first and worry about cutting spending afterwards. The Liberals will eventually be back in power. It’s better to handicap their ability to increase spending by forcing them to raise taxes (and take the political hit) to finance their own free-spending ways. Which is why no CPC government should ever be running anything close to the surpluses we currently have.

I think you’re over-estimating the skills of average Canadians. Plus, some peoples’ situations are different from those collecting a regular wage each month. My wife is an independent contractor. Please do bring your grade 8 math skills and your calculator over to do her taxes for her. I’ll even provide you with a cup of coffee as you whiz through them.

It takes a calculator and grade 8 math.

Meh, you’re out to lunch if you think people really understand the tax system and or understand what a particular tax cut will do to their particular financial situation.

The GST cut is a highly viable method in which the Conservatives can get the message out that they’re cutting taxes. Whether or not you agree with the cut is irrelevant.

Taking out a calculator and reviewing grade 8 math isn’t something the majority of CDNs are willing to do when considering the tax implications of individual party policies. They’d rather just look down at the receipt for the [fill in the blank] they just purchased and see they’re paying less taxes.

Tax cuts are only half the battle — if at all. The federal government needs to reduce spending.

Agreed.

Lets face it, most people are so removed from the tax process that they have no clue as to whether they are saving any income at the end of the year.

The same can be said about “conservatives” too.

Tax cuts are only half the battle — if at all. The federal government needs to reduce spending.

—

If the government continues to spend at the same rate, the difference has to be made up somewhere else. The question is where??

[The American dollar is in devaluation mode which can make it easy for the Canadian government to hide an increase in the money supply.]

When the same government prints the money, it makes no sense to praise tax cuts if government expenditures are not reduced.

It takes a calculator and grade 8 math.

So, if, as an economist, the Prime Minister is not willing to tell people what they need to know in order to make an informed decision, then I wonder what type of leader he is.

You’re reaching here. They’ve announced income tax cuts in conjunction with the GST cut.

“What we’ve done is a new, historic, new era in corporate taxation,” he added. “We’re going to have the lowest business taxes in the major industrialized world. On the personal income tax side, we have $45 billion worth of tax reductions this year and the next five years. These are huge tax reductions and we’re going to have them work through the system.”

The minister surprised many Tuesday by turning his routine fall economic update into a major tax reduction announcement, cutting the GST by one percentage point to five per cent effective Jan. 1, 2008, chopping business taxes faster and deeper than anyone expected, and retroactively reducing personal income taxes to Jan. 1, 2007.

The measures, most of which go into effect on New Year’s Day, chopped $4.8 billion off the government’s projected $16.4 billion surplus this fiscal year, and will continue to deplete government coffers to the tune of about $8 billion each and every year going forward.

I agree that income tax cuts are probably better in the long run; however a tax cut is a tax cut.

In this case, the GST tax cut is a great way for individual tax payers to see - in front of their eyes - government action on taxes. Lets face it, most people are so removed from the tax process that they have no clue as to whether they are saving any income at the end of the year.

Sitting down and actually trying to figure out your tax load is nearly impossible without an accountant present. Let alone trying to figure out how this particular fiscal update is going to affect your yearly income.

This is a game of perception, and right now this is a win win situation for the Conservatives.

Back in Feb the liberal mouthpiece on natural resources Mark Holland mused openly about punishing the oil and gas sector ala NEPII.

After the by-election disaster in Quebec, the rats started jumping ship and open talk of a leadership coup started being the media’s talking point when they didn’t have nay copy to report.

One of their senators recently mused “how can it get any worse.

Now the liberals want to raise the GST.
I think the senator should be careful what she asks for.

or he isn’t willing to tell Canadians in real terms what he knows

Ha, his hidden agenda, you mean?

In order to save over $250 worth of GST with a 1% reduction, a person would need to spend over $25,000 - this number is higher than the average take home after tax income of Canadians. Most economists agree that a reduction in the GST doesn’t do much for consumers, it mostly puts money into the hands of those who sell us stuff (i.e. $1 for a pop, will still cost $1 and the store that sold it to you just made an extra penny). Now, if the government was serious about cutting taxes, they would reduce each tax bracket by 1/2%. This would save the average income earner an additional $350 a year (on top of the tax cut the government just announced - give or take a dollar), and who wouldn’t mind paying $600 less in taxes each year? I wouldn’t, because I am certainly not going to save $600 in GST, given that I don’t have that much disposable income to tax on my purchases.

Again, before you go tooting your horn about the 1% GST cut, do the math and see how retarded the idea actually is. Stephen Harper is an economist, and if he cannot do the math, then we are either in trouble, or he isn’t willing to tell Canadians in real terms what he knows.

There have been a lot of missteps lately but this has the potential to be a ‘fear of the unknown’ thing that keeps people from wanting to vote out a government in favour of a questionable government in waiting. This could turn the whole ‘hidden agenda’ notion on its head … who has the hidden agenda now?

I noted later that one of the Liberal strategists was back-pedalling like crazy on the notion that the Liberals would reverse a tax cut.

Meanwhile, they abstained from voting … again. Yeesh.