Tuesday, November 15, 2005

Tax Cut Ups

Ralph Goodale's budget in all but name (without the new shoes) is not only a crude pre-election bribe, but it's also one few Canadians who don't fall inside the Liberals' coveted demographics would even benefit from.

Here's how those $30 billion personal tax cuts work out:

Rate for lowest income tax bracket to be reduced one percentage point to 15 per cent, retroactive to last Jan. 1.

— One percentage point reduction to each of the middle tax rates by 2010.

— Increase in the income level at which the top tax rate applies, starting in 2010.

— Immediate $500 increase to the basic personal amount of income all Canadians can earn without paying federal tax.

— A Working Income Tax Benefit for low-income earners starting in 2008.

The poor people who might otherwise vote NDP get their tax cut now. The top tax bracket, whose voters are reliably Liberal, especially in Ontario (contrary to the Liberals' own rhetoric) can wait a while.

But Wimpy will gladly pay the middle class in five years for their votes today, after another election will have intervened.

In any event, this will all be irrelevant in a week's time.

Source: Globe and Mail


Anonymous said...

Of course, the aptly named Mr. HArper has no fiscal policy. Or he's keeping it secret or something. Have you seen it. No, not here. Hmmmm.

Anonymous said...

The general concept of developing 5-year spending plans when the government can't event properly estimate next years budget surplus is not fiscally responsible. Announce the changes in the budget for the year when the changes come into effect.

Good site!