Liberals would cut Income & Business Taxes

[gc1765]

OTTAWA — A Liberal government would cut income and business taxes, not the GST, Stéphane Dion said Thursday in a speech to the Canadian Club of Ottawa.

This is much better than cutting the GST, IMO.

[Charles Anthony]

Hmm... maybe I will get up off my ass and vote.

I must say that if we went back in time 30 years ago, who would have thunk that the leaders of the federal parties would be haggling over which taxes to cut?

[madmax]

OTTAWA — A Liberal government would cut income and business taxes, not the GST, Stéphane Dion said Thursday in a speech to the Canadian Club of Ottawa.

This is much better than cutting the GST, IMO.

Those are the taxes the Liberals have been cutting for years. So he is stating the same position as before.

The GST was nothing more than an election gimmick that has reduced government coffers and gives me an extra copper piece in my pocket.

Who would have thought that someone at the Canadian Club would suggest cutting Income and Business Taxes.

Is Dion going to Raise the GST?

[Mad_Michael]

OTTAWA — A Liberal government would cut income and business taxes, not the GST, Stéphane Dion said Thursday in a speech to the Canadian Club of Ottawa.

This is much better than cutting the GST, IMO.

I disagree.

Income and business tax cuts can be entirely opaque, hidden with loopholes and deductions and credits and are always targeted to special interests or used as 'goodies' for favoured political supporters, groups or regions.

Such 'cuts' can be trumpeted loudly, yet affect little or nothing. Indeed, no matter what, a politican can take credit here while doing nothing.

Cutting GST is across the board - is entirely above board. No room for political spin here. No room for politicans to hide either.

I am aware of the abstract economic theory of progressive taxes, regression by income and the relative character of consumption taxes vs income taxes. However, all that assumes that we have a perfect system of application. We don't. Our system is run by politicans who have every interest to lie and cheat and reward their own special friends.

[madmax]

Hmm... maybe I will get up off my ass and vote.

never a bad thing.

I must say that if we went back in time 30 years ago, who would have thunk that the leaders of the federal parties would be haggling over which taxes to cut?

Curiousity quote

Other tax measures introduced around the same time included the three personal income tax cuts enacted from 1973 through 1975, increases in personal and employment expense deductions, the $1000 interest income deduction, and the investment tax credit. Then there was the $1000 deduction for pension income, the radical expansion of the Registered Retirement Savings Plan program in 1972, and the Registered Home Ownership Savings Plan (RHOSP).

[sideshow]

I would much prefer an income tax cut to the gst cut. But i do believe that the gst is a more regressive tax, so my opinion is based purely on selfish self economics.

[jdobbin]

OTTAWA — A Liberal government would cut income and business taxes, not the GST, Stéphane Dion said Thursday in a speech to the Canadian Club of Ottawa.

This is much better than cutting the GST, IMO.

A very good policy announcement. I agree that another GST cut is not the way to go.

[dlkenny]

I don't think a GST cut is a bad thing. Just think of when you buy a vehicle or a house or any other big ticket item, the GST could be thousands of dollars. Supposedly the idea from the Conservatives is to cut the GST again to 5% and then eliminate it completely because they say its costs would outweigh the benefits if it were cut beyond 5% and not eliminated. That said, I also agree that Canadians in general would rather see income tax cuts. Before voting Liberal though I'm anxious to see what the Conservatives are going to put forth in the budget, I've heard some whispers from the Conservative caucus about reforming taxation on income trusts (incrementally increasing the taxes to 10% over 7-10 years) instead of Stephen Harpers hardcore plan to tax them like corporations. Also, if they ever get around to income splitting that would mean some serious income tax relief for average Canadians. I doubt this will be in the upcoming budget. I somehow don't trust Dion, he's too left wing and bigger government means more taxes and I have a hard time to believe that over the course of a mandate he wouldn't raise taxes. I'd bet the first thing he'd do is to restore the GST to 7%. I think his promise is simply Dion playing politics.

[Topaz]

I don't think a GST cut is a bad thing. Just think of when you buy a vehicle or a house or any other big ticket item, the GST could be thousands of dollars. Supposedly the idea from the Conservatives is to cut the GST again to 5% and then eliminate it completely because they say its costs would outweigh the benefits if it were cut beyond 5% and not eliminated. That said, I also agree that Canadians in general would rather see income tax cuts. Before voting Liberal though I'm anxious to see what the Conservatives are going to put forth in the budget, I've heard some whispers from the Conservative caucus about reforming taxation on income trusts (incrementally increasing the taxes to 10% over 7-10 years) instead of Stephen Harpers hardcore plan to tax them like corporations. Also, if they ever get around to income splitting that would mean some serious income tax relief for average Canadians. I doubt this will be in the upcoming budget. I somehow don't trust Dion, he's too left wing and bigger government means more taxes and I have a hard time to believe that over the course of a mandate he wouldn't raise taxes. I'd bet the first thing he'd do is to restore the GST to 7%. I think his promise is simply Dion playing politics.

I did heard from one of the Steering Committee meeting, that the Govt cut GST but they raised another tax to keep the money coming in.

[Canuck E Stan]

I did heard from one of the Steering Committee meeting, that the Govt cut GST but they raised another tax to keep the money coming in.

Funny, I remember the same thing looking at my paycheck when the Liberals squacked about their "big" tax cut. That turned out to be less than a cup of coffee a week,

my check ended up smaller because the Liberals raised the CPP, to compensate for the cut.

Woopie Doo, for Liberal tax cuts.

[geoffrey]

Like all things Liberal, I'll believe it when I see it.

[jdobbin]

Funny, I remember the same thing looking at my paycheck when the Liberals squacked about their "big" tax cut. That turned out to be less than a cup of coffee a week,

my check ended up smaller because the Liberals raised the CPP, to compensate for the cut.

Woopie Doo, for Liberal tax cuts.

And Conservatives raised income tax to pay for a GST cut.

[jdobbin]

Like all things Liberal, I'll believe it when I see it.

Since he isn't the government, you won't be seeing anything unless there is a change of government or if the Tories agree with Dion.

However, the idea of GST cuts versus income tax cuts remains. One is better than the other.

[Saturn]

OTTAWA — A Liberal government would cut income and business taxes, not the GST, Stéphane Dion said Thursday in a speech to the Canadian Club of Ottawa.

This is much better than cutting the GST, IMO.

There are a million ways to cut income and business taxes. Saying simply that he would cut them means nothing to me. How can anyone compare a cut in the GST to some general statement about cutting income and business taxes?

[Saturn]

I would much prefer an income tax cut to the gst cut. But i do believe that the gst is a more regressive tax, so my opinion is based purely on selfish self economics.

How about a 5% income tax cut for incomes above $200,000? Still prefer the income tax cut?

[Saturn]

Like all things Liberal, I'll believe it when I see it.

The liberals cut taxes significantly every year for over 10 years. Seeing that you are so familiar with all things liberal and cutting taxes is one of them, why don't you believe they'd do it again?

[geoffrey]

Like all things Liberal, I'll believe it when I see it.

The liberals cut taxes significantly every year for over 10 years. Seeing that you are so familiar with all things liberal and cutting taxes is one of them, why don't you believe they'd do it again?

They rearranged taxes. The burden has just shifted, not lessened. You have to reduce spending to do that, which Martin did in the first years. But that's not the very left Liberal party we have under Dion today.

[Saturn]

They rearranged taxes. The burden has just shifted, not lessened. You have to reduce spending to do that, which Martin did in the first years. But that's not the very left Liberal party we have under Dion today.

Ok, they cut tax rates then. Cutting taxes generally means reducing tax rates, not reducing tax revenue. No party will decrease tax revenue.

[sideshow]

I think that they should leave the taxes, brackets, and gst as they are-just raise the zero tax paid threashold to 25k per year. This provides tax relief to everyone, has no burden on employers, and puts money in the pockets of those that need it most-the lowest wage earners. if anything, it would allow for LOWER than the current wage minimums discussed in other threads without detriment to the worker, and more incentives to the employer.

but then that might make sense so it will never happen.

[Saturn]

I think that they should leave the taxes, brackets, and gst as they are-just raise the zero tax paid threashold to 25k per year. This provides tax relief to everyone, has no burden on employers, and puts money in the pockets of those that need it most-the lowest wage earners. if anything, it would allow for LOWER than the current wage minimums discussed in other threads without detriment to the worker, and more incentives to the employer.

but then that might make sense so it will never happen.

That would cost $25 billion and so no, it doesn't make sense, so it won't happen.

[sideshow]

25 billion? based on what numbers? do you have a link?

and if so, im sure the gst rakes in enough, what with the huge surpluses, etc. would help cover it.

i would think that the extra disposable income would help stimulate the economy, and also give people back more of their own money rather than give it to government and (after their take) then have them squander it on the same people they took it from-low income earners.

[geoffrey]

Ok, they cut tax rates then. Cutting taxes generally means reducing tax rates, not reducing tax revenue. No party will decrease tax revenue.

Agreed.

[gc1765]

I think that they should leave the taxes, brackets, and gst as they are-just raise the zero tax paid threashold to 25k per year. This provides tax relief to everyone, has no burden on employers, and puts money in the pockets of those that need it most-the lowest wage earners. if anything, it would allow for LOWER than the current wage minimums discussed in other threads without detriment to the worker, and more incentives to the employer.

but then that might make sense so it will never happen.

Sounds good to me...

[Keepitsimple]

Dion's comparison of his "proposed" tax cuts to not cutting the GST is mis-leading. The Conservatives promised to cut the GST by another percentage point by 2011.....so there's another 3 or 4 years to address that promise.....you won't be seeing that cut for some time.

[geoffrey]

The transit pass tax cut is worth roughly $180 a year. That's a big tax cut, consider it alone outdoes the Liberal tax 16-15% cut for someone that rides transit.

And aren't we supposed to be jumping on the green tax bandwagon. Why doesn't Dion propose some tax advantages for those more environmentally concious.