Flaherty speech today

[shavluk]

That's terrific that they are giving us some of our own money back and as I am Ukrainian Xmas just got cheaper what with it being on Jan 7th.

I guess they are as bad as the liberals at mismanaging our government income tax.

What with harper's comments when the liberals themselves had a big surplus,,,,

that they were poor managers.

Here are some pennies back because we collected an extra 14 billion by mistake,,hahhaha

Myself I would have given 5 billion to finance infrastructure repairs ,something sorely over looked year after year and left the gst in place at 6% so that I could put another 5 billion next year.

I would be clear with voters that the funds would go and support where they were meant to.

Sad when you consider they wasted much more than they gave us back ,,, just in Afghanistan.

[mikedavid00]

I am Ukrainian

Yup.

[guyser]

I agree.

People don't know just how devistating these taxes are.

How devastating are they miked? S

[sharkman]

A 20% income tax cut could be a winner too.

Wow, liberals never demand cuts from government like they do when a Tory is in power! 20% income tax cut, eh? 50% corporate tax cut, eh? Hell, let's make it 80% across the board and be done with it LOL!

Back to reality, these cuts amount to 60 billion over 5 years (if I heard right). A major move in the right direction. If dobbins sudden cry for gigantic cuts is a sign, maybe Canadian liberals are indeed being weaned from the government teat. One can only hope.

[guyser]

maybe Canadian liberals are indeed being weaned from the government teat. One can only hope.

Yes, they now have a CPC teat to suckle since they seem to be alike.

[sharkman]

I agree.

People don't know just how devistating these taxes are.

I'm sorry but this is quite rich. Canadian corporations are presently ripping off Canadians with regard to the new buying power of the Canadian dollar. Want to buy a new car? Stay the hell away from Canadian dealerships and get the same Canadian made Honda Civic in the States.

Corporations need to wake up.

[fellowtraveller]

A KPMG survey has found that Canada has one of the world's highest corporate tax rates, but less than the United States, while the GST is relatively low.

The lowest corporate taxes among developed economies are still to be found in the countries of the European Union, KPMG International's latest global tax survey found.

In a review of corporate tax rates at the beginning of 2007 in 92 countries, the average rate in the EU was 24.2 per cent, compared with 28 per cent in Latin America and 30.1 per cent in Asia-Pacific.

Among developed economies, Canada's corporate tax rate of 36.1 per cent is one of the highest. However, the United States and Japan still have higher corporate tax rates at 40 per cent and 40.7 per cent respectively, KPMG says.

But value-added tax, or goods and services tax, rates in the EU countries average 19.5 per cent, compared with 14.2 per cent in Latin America and only 10.8 per cent in the Asia Pacific.

Canada's average federal GST is six per cent. Additionally, all provinces, except for Alberta, impose a form of GST or retail sales tax at rates ranging from six to 10 per cent on the sales of taxable goods and services.

Yet another misleading package.

First, corporate taxes and GST should not be bundled or mentioned together. Corp taxes are income taxes, and since different countries have different tax dodges available, all that really matters is taxable income to the corporation. The rate is secondary to that, as different countries allow wirteoff of different things- and that is very significant.

GST is a consumer tax, not a business tax. The vast majority of Canadian businesses could care less about the GST rate. It means othing to them other than an accounting nuisance. The vast majority pay GST on purchase of their goods, collect it on the sale of the good, and give what is left to the government. Obviously, it is important to end users, but they aren't businesses, they are ordianry people.

Finally, the chart in your link is misleading when it discusses rates of GST and VAT in various countries. How can the Canadian rate be quoted as 6%, soon to be 5%, when 90% of the country actually charges in the neighbourhood of 14% when PST is factored in, as it surely must?

[jdobbin]

Wow, liberals never demand cuts from government like they do when a Tory is in power! 20% income tax cut, eh? 50% corporate tax cut, eh? Hell, let's make it 80% across the board and be done with it LOL!

Back to reality, these cuts amount to 60 billion over 5 years (if I heard right). A major move in the right direction. If dobbins sudden cry for gigantic cuts is a sign, maybe Canadian liberals are indeed being weaned from the government teat. One can only hope.

The Liberals in the last budget had bigger tax cuts than the Tories did in two. According to the CTF, they made out far better.

With a $14 billion surplus, it would have been easy to drop taxes down by that much. $10 billion of tax cuts on GST is a waste compared to $10 billion that could have been cut in income taxes.

[jdobbin]

Yet another misleading package.

First, corporate taxes and GST should not be bundled or mentioned together. Corp taxes are income taxes, and since different countries have different tax dodges available, all that really matters is taxable income to the corporation. The rate is secondary to that, as different countries allow wirteoff of different things- and that is very significant.

GST is a consumer tax, not a business tax. The vast majority of Canadian businesses could care less about the GST rate. It means othing to them other than an accounting nuisance. The vast majority pay GST on purchase of their goods, collect it on the sale of the good, and give what is left to the government. Obviously, it is important to end users, but they aren't businesses, they are ordianry people.

Finally, the chart in your link is misleading when it discusses rates of GST and VAT in various countries. How can the Canadian rate be quoted as 6%, soon to be 5%, when 90% of the country actually charges in the neighbourhood of 14% when PST is factored in, as it surely must?

The chart didn't figure our what other countries charge in regional sales tax either. In any event, even at 14%, Canada is still lower than practically every other nation.

As for the rest of your complaints, take it up with KPMG and Canadian think tanks like Fraser and C.D. Howe that indicate Canada's corporate tax rates are too high. They wouldn't have touched the GST because as many economists have said, it is a poor tax to lower over an income tax cut.

[capricorn]

I have heard some ask why Flaherty came out with this "mini-budget" at this time instead of the full budget in February. One opinion is that it was timed with the Auditor General's report which is critical of the Conservatives handling of security, the environment and the health of Canadian Forces personnel. That is, give Canadians feel good news so they don't get overly upset about the AG's findings. This is entirely possible.

http://www.ctv.ca/servlet/ArticleNews/stor...030?hub=QPeriod

Although the majority of Canadians don't pay attention to politics on an ongoing basis, most who paid attention were aware the government was sitting on a huge surplus. Many were asking what would happen to all that dough. I know I and my friends have been discussing this question for some months. Now the Conservatives have presented a tax plan that solves the mystery and is sure to please the majority.

Canadians are not economists. They don't understand what drives the economy and, the reasons corporate and personal tax cuts are preferential to a GST cut. When economists say they do not support a cut in the GST, their technical explanation is lost on most Canadians. They simply want more money in their pocket. So now, both a GST cut and income tax cuts are forthcoming.

With this economic update, Harper achieved 3 things. He pushed the AG report behind the no. 1 priority for Canadians which is tax relief, ended the speculation of where the surplus will be spent and baited the opposition into causing an election. The bait didn't work so no election.

When Dion reacted he hinted at the Liberals' own priorities. He said he will present his own plan and explain it to Canadians. The one that stuck with me is what he called "investing in social justice". I can't wait to hear what that's all about.

[jdobbin]

Canadians are not economists. They don't understand what drives the economy and, the reasons corporate and personal tax cuts are preferential to a GST cut. When economists say they do not support a cut in the GST, their technical explanation is lost on most Canadians. They simply want more money in their pocket. So now, both a GST cut and income tax cuts are forthcoming.

With this economic update, Harper achieved 3 things. He pushed the AG report behind the no. 1 priority for Canadians which is tax relief, ended the speculation of where the surplus will be spent and baited the opposition into causing an election. The bait didn't work so no election.

When Dion reacted he hinted at the Liberals' own priorities. He said he will present his own plan and explain it to Canadians. The one that stuck with me is what he called "investing in social justice". I can't wait to hear what that's all about.

I don't know if tax cuts are number 1 with Canadians. They probably rank up there but healthcare often gets top billing even now.

I'm sure Canadians will pleased but it might be several months or more before they know how much it was affect their pocket book

In any event, even with huge support for how the economy is doing, the Decima poll out today says the Tories are at 33% in the polls with the Liberals at 29%.

[capricorn]

I don't know if tax cuts are number 1 with Canadians. They probably rank up there but healthcare often gets top billing even now.

Let me qualify my statement. Between the AG's damning report and getting a slice of the surplus, Canadians' attention would be focussed on tax cuts.

You forgot to mention the environment is also a priority for Canadians. It's right up there with healthcare.

In any event, even with huge support for how the economy is doing, the Decima poll out today says the Tories are at 33% in the polls with the Liberals at 29%.

I expect that today's announcements will result in (I borrow from Nik Nanos' lexicon) an uptick for the Conservatives' in the next poll.

[Michael Bluth]

Let me qualify my statement. Between the AG's damning report and getting a slice of the surplus, Canadians' attention would be focussed on tax cuts.

You forgot to mention the environment is also a priority for Canadians. It's right up there with healthcare.

I expect that today's announcements will result in (I borrow from Nik Nanos' lexicon) an uptick for the Conservatives' in the next poll.

They definitely will see an uptick.

If there was any truth to the Liberals being that strong they'd force an election next week...

[jdobbin]

Let me qualify my statement. Between the AG's damning report and getting a slice of the surplus, Canadians' attention would be focussed on tax cuts.

You forgot to mention the environment is also a priority for Canadians. It's right up there with healthcare.

I expect that today's announcements will result in (I borrow from Nik Nanos' lexicon) an uptick for the Conservatives' in the next poll.

We'll have to see more of the Auditor's Report over the next days. My impression it is that about par for the course for government operations.

There could very well be a move up in the polls after the budget. It doesn't mean an election though because the Liberals are not voting against the mini-budget.

Today's poll from Decima shows the Tories have to go up at least 7% to get to the bare minimum of what would be required for a majority.

[capricorn]

It doesn't mean an election though because the Liberals are not voting against the mini-budget.

Pity. I was hoping...

[Michael Bluth]

Pity. I was hoping...

Yeah, but you should have given up hope a while ago.

Steph is so damaged right now the Liberals can't dream of calling an election.

[August1991]

I'm sure Canadians will pleased but it might be several months or more before they know how much it was affect their pocket book.

Kinda smart in a way.

The Tories get good press from the announcement, then they get good press on 1 Jan when the GST goes down and then they get the good press when people file or get a refund. As an added bonus, as Capricorn noted, this announcement obscures the AG report.

And who said Harper doesn't know how to handle the media?

[capricorn]

Yeah, but you should have given up hope a while ago.

M.B. I'm an optimist so hope is always in my realm of thinking. Maybe I have more in common with Steffie than I know.

[jdobbin]

Kinda smart in a way.

The Tories get good press from the announcement, then they get good press on 1 Jan when the GST goes down and then they get the good press when people file or get a refund. As an added bonus, as Capricorn noted, this announcement obscures the AG report.

Considering how the last two budgets which included tax cuts have had little affect on the Tories in the polls, I think it will take more than economic good news to get the Tories off of the 36% average they've been stuck at.

[White Doors]

They also reduced payroll taxes. Why does everyone skip that? Payroll taxes are an inpediment to hiring new staff and also affect productivity. EI premiums to drop 10 cents on the emplyer side and 7 cents on the employee side. Another 10 billion to be paid toward the debt as well. What's not to like?

I also think having Cannon there signifies that the full budget in the spring will be another round of tax measures and some focus on the Infrastructure.

We are now seeing the conservatives scary hidden agenda. They have a majority by default now and will have for the forseeable future. And they know it.

[scribblet]

Good point about payroll taxes, they can cripple a small business.

Whoda thunk it tho, Liberals and Conservatives vieing for whowho can come up with the best tax cuts, corporate and personal. "I would go deeper than that," said Liberal leader Stephane Dion just the other week.

The Liberals have to support the budget, and if they bring down the gov't in the spring, have to offer bigger and better cuts... LOL

[Michael Bluth]

They also reduced payroll taxes. Why does everyone skip that? Payroll taxes are an inpediment to hiring new staff and also affect productivity.

The Canadian Federation of Independent Businesses has noticed. And they like what they see.

"Tax cuts were our members' number-one priority by far, with just the vast majority saying that was the number-one issue. So, they've hit that issue," said Garth Whyte, executive vice-president of the Canadian Federation of Independent Businesses.

[M.Dancer]

I am generally happy with anything that increases my take home pay, so consequently I have been happy with the last 3 finance ministers.

[fellowtraveller]

The chart didn't figure our what other countries charge in regional sales tax either. In any event, even at 14%, Canada is still lower than practically every other nation.

As for the rest of your complaints, take it up with KPMG and Canadian think tanks like Fraser and C.D. Howe that indicate Canada's corporate tax rates are too high. They wouldn't have touched the GST because as many economists have said, it is a poor tax to lower over an income tax cut.

"most countries " have much more centralized economies and do not have regional sales taxes. The US is an exception, as most states have sales taxes.

I'm taking it up with you, since you posted this misleading information.

Again.

[fellowtraveller]

They also reduced payroll taxes. Why does everyone skip that? Payroll taxes are an inpediment to hiring new staff and also affect productivity. EI premiums to drop 10 cents on the emplyer side and 7 cents on the employee side. Another 10 billion to be paid toward the debt as well. What's not to like?

I also think having Cannon there signifies that the full budget in the spring will be another round of tax measures and some focus on the Infrastructure.

We are now seeing the conservatives scary hidden agenda. They have a majority by default now and will have for the forseeable future. And they know it.

I don't see payroll taxes/EI premiums making much difference to many businesses, unless they employ low wage earners.

What does it matter if the rate is up or down ten cents, if your employee has already maxed out contributions by mid-year? The govt could make an immediate difference by both cutting the rate and dropping the employer contribution to say, $1500 per year.