yyz monkey wrote:Hedley wrote:As a taxpayer, I like a smaller deficit. You probably don't even know what a deficit is, let alone debt, or even the difference between the two. Lefties simply don't care about fiscal responsibility. See Obama/Pelosi.
As a taxpayer, I like a smaller deficit as well. Please detail for us how Harper's plan to cut corporate taxes will help reduce the deficit. Please also detail for us how cutting the GST was fiscally responsible?
By cutting corporate taxes, smaller business owners are essentially rewarded for keeping more money on the company books. Added liquidity translates into increased self funding of expansion, R&D, Staff hires, reduced interest payments, and training.
{In my brother-in-laws case, if he makes $200K profit, and leaves it in the company account, he still has access to it for whatever he wants, losing only 15%. If he pays himself a bigger bonus above his base personal salary, he's losing far more.)
By cutting corporate taxes, Canada becomes more attractive for foreign investment.
While counter-intuitive, cutting corporate tax rates will generally result in increased tax revenues.
As for the GST, frankly I agree with you, and feel this should have been left at 7%. On the balance of things, I feel we are better served paying a higher GST and a lower income tax rate. The GST is a barometer, and revenues increase as consumers show confidence in the economy. However, the problem with that thinking is that it offers no tax relief for people with low incomes, including seniors and pensioners.
