Flaherty hints at tax cuts as consumer confidence dips

[jdobbin]

I don't know how a government could survive if it cut its income source off completely.

With no time limit, probably not more than a year. Complete removal of GST would cost $30 billion for the year according to the Globe and Mail. Twelve weeks of removing corporate income tax about the same.

The cost of a complete income tax drop for a year might be prohibitive but coming from no deficit to a one year one, there is little doubt it would act as a stimulus for spending.

After a year, the GST would have to be restored if for no other reason than cool possible inflation.

Forestry and Auto don't require bailouts as much as the industry and forestry require stronger laws to keep profitable operations from being purchased for their technology then relocated offshore. The loans are to help operations move and to help operations move, some of these facilities must maintain operation for a few years.

Which companies have been bought for their technology?

I know some have been bought for equipment which was moved but I haven't seen one for technology except for the Canadarm company which the Tories blocked. And in that case, I wasn't sure if the operation was being moved.

It is to help with a harmonious closure. No matter what the government does with its friends who are lining up for their corporate welfare cheques, none of this money creates markets or a consumer base.

The bailouts make me nervous about the money not having any accountability.

I'd rather use a stimulus more broadly so I don't have a problem reducing taxes but other spending has to be cut and there has to be a time limit on some tax cuts if it causes a structural deficit.

I have no problems cracking down on companies using the money to line their pockets or fund building operations that ultimately don't benefit the taxpayer.

[Jerry J. Fortin]

Consumption taxes need not adversely impact the poor! Even the GST needs a remake, there should be more things tax exempt. Childrens clothing, baby food, diapers, personal toiletries and non prepared foods all of these things need to be tax free. This is what the poor spend money on, basic necessities so make them tax exempt. Tax everything else, short of utility payments for private dwellings.

The government would collect taxes based upon consumption, the taxes would be applied equally.

[madmax]

Which companies have been bought for their technology?

I like this comment, because it reflects what I hear when speaking to government officials and MPs and MPPs.

Am I too list 10s, hundreds or a thousand companies? Where would you like me to start?

[jdobbin]

I like this comment, because it reflects what I hear when speaking to government officials and MPs and MPPs.

Am I too list 10s, hundreds or a thousand companies? Where would you like me to start?

I can only go by what I've read. I don't doubt that is happens.