Trudeaunomics: Higher tax rate = lower revenues

[turningrite]

Well, now we know. Trudeau's tax strategy of increasing the top marginal tax rate has resulted in - wait for it - lower overall revenue generation. I guess that deficit really won't balance itself. Normally, those of us who talk of Trudeaunomics mean the propensity of his government to spend our tax dollars on schemes intended to buy off potentially Lib-friendly voters. Apparently, however, the Lib strategy goes much deeper than that. They're blaming other factors, of course, like the decline in revenues in depressed Alberta (which began in 2014, by the way) as well as in income shifting by those trying to avoid the 2016 changes (big surprise) but the impression arises that they simply might not have a clue. Funny that they couldn't wait to start shoveling money out the door for pet projects without considering the revenue side of the ledger. It's the Lib way, I guess. Budgets balance themselves - or not. Look at my socks. Aren't they cute?

https://www.theglobeandmail.com/politics/article-high-income-earners-paid-46-billion-less-in-taxes-in-2016-despite/

[eyeball]

Not that I really care one way or another but, if it had gone the other way would you have given Trudeau credit?

In any case your own source cites reduced oil patch activity not to mention tax sheltering for the reduction in tax revenue.

[turningrite]

5 hours ago, eyeball said:

Not that I really care one way or another but, if it had gone the other way would you have given Trudeau credit?

In any case your own source cites reduced oil patch activity not to mention tax sheltering for the reduction in tax revenue.

Actually, Trudeau is benefiting from a relatively prosperous economy, a situation that permits his government to delay the infrastructure spending it had promised. But you have to wonder how with a supposedly booming economy income tax revenues have actually dropped? Logic suggests this should not be the case. With a rising deficit in a period of relative prosperity, one shudders to think of the size of the deficit that will emerge when the country inevitably experiences a recession.