Ways for the provinces to make more revenue.

[Big Blue Machine]

-Since the 1% GST will not make a huge difference, maybe the provinces should raise the PST to make them more revenue that would otherwise might be lost.

-Make more casinos

-Raise taxes on fast food, cigarettes, alcohol, SUVs.

[Riverwind]

-Since the 1% GST will not make a huge difference, maybe the provinces should raise the PST to make them more revenue that would otherwise might be lost.

That reasonable suggestion has been made by the Feds - however, the provincial leaders have rejected it because they are mostly hypocrites that want the money but don't want to take responsibility for raising taxes to get it.

[Charles Anthony]

Raising taxes??????

How long will it take Canadians to shake of the Big Red Machine of Trudeaumania????

Here is a suggestion: how about LOWERING taxes?

God forbid we should stimulate the economy by................ letting people spend more of their own money.

[geoffrey]

Ya why do the governments need more money? My province Alberta took nearly $15,000 per family of four more than it should have this year, just to sit in the bank and be spent on vote buying projects. I'd rather get a cheque or have my taxes cut.

[Big Blue Machine]

Raising taxes??????

How long will it take Canadians to shake of the Big Red Machine of Trudeaumania????

Here is a suggestion: how about LOWERING taxes?

God forbid we should stimulate the economy by................ letting people spend more of their own money.

There is such thing as the Laffer curve.

[Jerry J. Fortin]

There is also such a thing as a tax revolt.

[jdobbin]

-Since the 1% GST will not make a huge difference, maybe the provinces should raise the PST to make them more revenue that would otherwise might be lost.

-Make more casinos

-Raise taxes on fast food, cigarettes, alcohol, SUVs.

Casinos have been making less money this year cross Canada. It is quite possibly as a result of no smoking legislation. The Feds already raised taxes on cigarettes and alcohol.

PST rates are already pretty high for some provinces. Alberta still doesn't have one. Not does it have a revenue problem.

I could go for a tax increase if it was all going to roads but it generally goes to general revenue.

[geoffrey]

I could go for a tax increase if it was all going to roads but it generally goes to general revenue.

Building roads doesn't fix traffic problems. Tolling them does. Providing alternatives (public transit, proper bike paths that don't exist anywhere in my knowledge of Canada, ect.) does.

[jdobbin]

Building roads doesn't fix traffic problems. Tolling them does. Providing alternatives (public transit, proper bike paths that don't exist anywhere in my knowledge of Canada, ect.) does.

Canada doesn't have good enough inter-provincial and international crossings for trade. The U.S. Interstate program started by Eisenhower wasn't meant soley as a traffic problem to be fixed. It was considered important for trade, safety, efficiency and speed.

I am all for public transit and bike trails but aren't those more urban issues rather than national and international issues?

[geoffrey]

Building roads doesn't fix traffic problems. Tolling them does. Providing alternatives (public transit, proper bike paths that don't exist anywhere in my knowledge of Canada, ect.) does.

Canada doesn't have good enough inter-provincial and international crossings for trade. The U.S. Interstate program started by Eisenhower wasn't meant soley as a traffic problem to be fixed. It was considered important for trade, safety, efficiency and speed.

I am all for public transit and bike trails but aren't those more urban issues rather than national and international issues?

Didn't know you were taking about highways, in that case, a little investment would be nice. Other methods like highspeed trains would be good too. Driving has a human cost too, one of the most dangerous activities you could do. High speed rail is much safer and efficent.

I desperately trying to find an article that had the Alberta government considering buying massive airships to transport goods and stuff instead of building roads. It was a great story, and the numbers seemed to check out in it too, I'll update later if I can find it.

[theloniusfleabag]

Dear geoffrey,

I desperately trying to find an article that had the Alberta government considering buying massive airships to transport goods and stuff instead of building roads. It was a great story, and the numbers seemed to check out in it too, I'll update later if I can find it.

Here is a somewhat related article...

http://66.102.7.104/search?q=cache:HUPNPAa...ca&ct=clnk&cd=5

[Charles Anthony]

There is such thing as the Laffer curve.

Yes.

There is also something called personal economic freedom.

If we trust bureaucratic economists why not trust them with everything?

I have something better for big red economists:

Why not have every single submitizen hand over 100% of their money to all of the bureacrats?

The bureacrats could punch in numbers and decide how much of that money is necessary to play with the economy to fullfil their Laffer equations. The bureaucrats could return the difference in the form of a "tax returen" at the end of the year?

[Big Blue Machine]

You're not saving any big amount of money wit the 1% GST cut, but your province might need the extra money generated from that 1 extra PST percent to fund such things as income tax cuts, infrastructure.

[jdobbin]

Didn't know you were taking about highways, in that case, a little investment would be nice. Other methods like highspeed trains would be good too. Driving has a human cost too, one of the most dangerous activities you could do. High speed rail is much safer and efficent.

I desperately trying to find an article that had the Alberta government considering buying massive airships to transport goods and stuff instead of building roads. It was a great story, and the numbers seemed to check out in it too, I'll update later if I can find it.

It is estimated that the Interstate highway system in the U.S. has saved nearly 250,000 lives since 1956. And it has also saved time and earned trillions for America as a whole. Some say that Eisenhower was motivated to build the system when he part of one of the largest military convoys in the United States that was tasked to being supplies from one coast to the other during World War II. It took them 60 days to do it.

It is unlikely that a private road system could be as effective since they generally only work in high density areas. Canada needs this type of public investment from east to west and north to south. Something like it could change the whole dynamic of trade in Canada in ways the railways once did.

[Charles Anthony]

You're not saving any big amount of money wit the 1% GST cut,

The gall! Are you deciding how much each person can afford? Why not raise it to 2% or 3% or 4% instead?

This money does not belong to the governmnent. It belongs to the tax-payer. If you want to take people's money and with nebulous economics, justify it concretely.

Play with your Laffer equations and justify your 1% if you can. There is a challenge for you.

but your province might need the extra money generated from that 1 extra PST percent to fund such things as income tax cuts, infrastructure.

Is that your justification???????

With that justification, we can say the province might need all of our money. Therefore, we should run to the province and give the bureaucrats all of our money.

[Big Blue Machine]

Most economists in the election said the 1% GST cut was a dumb idea, they put more emphasis on income tax cuts. With the 1% PST rise, the extra revenue from that will help finance such things as income tax cuts.

[Charles Anthony]

Fine. I will use your "economic" model.

With the 1% PST rise, the extra revenue from that will help finance such things as income tax cuts.

Why not raise it to 2% or 3% instead?

What exactly is the maximum Laffer percentage for Canada with respect to the GST?

I bet you can not answer it yourself.

In fact, I bet that none of your genius "economists in the last election" could answer it either. They just critize the GST cut because of a political agenda or a greasy palm.

[Big Blue Machine]

Because people are used to 15% tax, so there is no reason to raise it by 2%.

[Jerry J. Fortin]

Eliminate all witholding taxes. Replace revenue stream with fair rate transaction tax. Both sides of the transaction to pay 10%. No tax returns and no refunds. Administered in the same manner as GST. New tax rate 17% total, no sliding scale or graduated rates. Tax exemption for all citizens below predetermined (poverty) level.

Complete elimination of Revenue Canada bureaucacy. Tax lawyers become redundant. All business reduces administrative cost of taxation concerns. Citizen retain earned income, disposable family income increases. Family investment planning creates development capital for new business ventures.

Where is the downside???

[Wilber]

There is also such a thing as a tax revolt.

In the US maybe (California did it once) but not in Canada.

[jdobbin]

In the US maybe (California did it once) but not in Canada.

And now California is constantly in deficit. Propositions have limited their abilility to raise revenue and have limited the areas that they can cut.

[Wilber]

In the US maybe (California did it once) but not in Canada.

And now California is constantly in deficit. Propositions have limited their abilility to raise revenue and have limited the areas that they can cut.

True, but the underground economy generated by the GST is the closest thing Canada will ever come to a tax revolt. I don't think Canadians would ever do it up front, they will just find ways of doing it under the table.

[jdobbin]

True, but the underground economy generated by the GST is the closest thing Canada will ever come to a tax revolt. I don't think Canadians would ever do it up front, they will just find ways of doing it under the table.

Do we even know how much of the economy is underground? So many people don't really have that option. They work for private or public companies that follow the letter of the law.

[Wilber]

True, but the underground economy generated by the GST is the closest thing Canada will ever come to a tax revolt. I don't think Canadians would ever do it up front, they will just find ways of doing it under the table.

Do we even know how much of the economy is underground? So many people don't really have that option. They work for private or public companies that follow the letter of the law.

No we don't but those same people often have the option of who they hire and how they pay when it comes to their private lives.

[geoffrey]

True, but the underground economy generated by the GST is the closest thing Canada will ever come to a tax revolt. I don't think Canadians would ever do it up front, they will just find ways of doing it under the table.

Do we even know how much of the economy is underground? So many people don't really have that option. They work for private or public companies that follow the letter of the law.

Stat's Canada estimates 2.7%, realistically we are looking at between 2% and 15% depending on what you take is on the real velocity of Canadian currency. Closer to 15 is most accurate. Think of how much you do is underground, yard sales (you don't actually collect GST on that income do you, how about if you own a business that makes more than $30k/year... you should be legally), helping out the buddy with his basement for a few bucks (or beer, do you claim this 'cash like' payment as income?), when you buy something off ebay, ect. ect.. Obviously most of us aren't making a living off these ventures, so it may be a few percent of your total money flow. But there are people making nearly all their money under the table, and that's why I have no problem believing 15% of our economy is underground... and it's caused by... you guessed it!! GST!!!

Take a read: http://www.ctf.ca/pdf/ctjpdf/2002ctj5_hill.pdf