Michael Ignatieff Will Raise Your Taxes, But How?
April 14, 2009 · By Matthew Campbell
So he admitted in Cambridge today. While I admire his willingness to come out with such a policy, I am also compelled to raise the alarms against such a dangerous policy for our country. After all, while answering a question on the deficit (which triggered Ignatieff’s tax-hike declaration), the Liberal leader also had to acknowledge that tax hikes can delay an economy’s recovery. In a somewhat direct way, Mr. Ignatieff’s idea of hiking taxes in a way that won’t negatively impact our recovery begs a very simple question: how? How can taxes be levied that still allow people and businesses to spend the same amount of money that is needed for our liquidity to start flowing again? Are these special taxes, and if so, why are they the exception?
Tax policy is so much a fickle area of government, that even a tax on foreign goods coming into the country (a tariff) works against that nation’s productivity and wealth creation abilities; the last twenty years under free trade has so clearly demonstrated this that even old CAW boss Buzz Hardgrove acknowledged this a couple of years back. So again, the question comes down to this for Michael Ignatieff: how are you going to get the goose to lay your coveted golden eggs without poaching the bird?
I saw nothing in that article that said he would increase taxes immediately. In fact, the Liberals have been quite clear that they support a deficit in the short term to deal with the economic meltdown, provided we get ourselves back to the black as soon as possible.
As far as I read it, Ignatieff was speaking of increasing taxes to avoid a structural deficit, not near-term plans.
If I recall correctly, raising the GST was trial ballooned by Iggy
Iffy has been talking raising the GST since the coalition of losers.
This is nothing new.
What is new is Iffy’s plan to melt enviro and energy issues into one. Using the constitutional jurisdiction over air, water and soil quality,
federal Libs will (are right now in committee) propose legislation, to penalize the oilsands.
A back door cash cow that Dippers and Greens will absolutely love.
liberals raising taxes, and I’m supposed to be surprised?
Abattoir, you seem to reading a lot into those quotes. I think most people would read that article and say that Ignatieff plans a tax hike in the near (1-2 years) future, otherwise, why bring it up? Also, if he’s trying to avoid a structural deficit, the framework was there before the temporary stimulus measures in Budget 09 were introduced, and we did that quite nicely within the existing framework + some modest cuts in this year’s budget.
The liberals raised taxes before; remember the Drastic Cuts made too and railed on because according to them “Mulroney left them with a deficit” – well, apparently, the liberals took the money from those Cuts claimed it to a surplus then they raise taxes and the amazing thing is that there was no ‘global crisis nor recession at the time. Why we were not made aware of the liberals scheme, is because the media made sure that the public never knew.
Matthew, we each read what we want to see, I suppose. I think you’re reading too much into those quotes. A tax hike is likely necessary at this point, given the fact that the Conservatives have simultaneously increased spending and decreased revenues at an alarming rate. This is not counting the temporary stimulus measures.
The much-touted ‘balanced’ budget update floated before Christmas (remember the ‘razor-thin surplus’ estimates?) were a complete farce. The Conservatives were planning on balancing the books by selling massive assets at fire-sale prices. Talk about short-term thinking.
The fact is we’re already in a structural deficit, or so close that we can’t hope to pay off the debt any time soon. Tax hikes will be needed to fix the situation as soon as the economy is healthy enough to support it.
Abattoir, how much of the current spending that the Conservatives have done is one-time spending? How much of it is “corrective” spending? How much is War Time spending?
It’s easy to forget that any new government is going to have to engage in corrective spending based on the differing philosophies of different governments. Conservatives did not, nor will we ever, agree with the mothballing of our military forces. There has been necessary and required spending there in order to bring our military up to scratch. That’s not spending that will continue forever.
It’s easy to forget or ignore that we are “A Nation at War”. War’s cost money. Regardless if people agree or not with the war, we’re there, and we’re participating. And we’re having to pay those bills, but it isn’t a forever expenditure.
It’s easy to forget that no other government before this Conservative Government was ever willing to consider or even try to address the “fiscal imbalance” that the provinces were continuously complaining about. A lot of money was spent by this current government trying to fix a problem that previous governments refused to acknowledge. This may go on, but it will find balance eventually.
It’s easy to forget that this Conservative Government has chosen to deal with past grievances against Government. The Residential School settlement is costing this government millions of dollars. But again, that is not ongoing spending.
If you were to take these examples and subtract them from regular and ongoing government spending, I think you’ll discover that this government is spending less than others, and that will be maintained once we get past this one-time and corrective spending that has been required.