Archive for December, 2005

Tax Cut Promises

December 1, 2005

11 comments

I never thought I would ever be discussing which tax-cut idea is better but a close election race can do strange things. You know things are really wacky when even Jack Layton (whose party believes every penny we earn belongs to the government) thinks that a cut in the GST for hybrid cars, diapers and children’s clothing would be a good idea.

The Tories are proposing to reduce the GST by 1% immediately and by another 1% within 5 years. I am no economist, but it seems to be that the Liberal tax-cuts unveiled in the fiscal update seems to be a better idea.

I can’t argue the case for income tax-cuts better than Scott Burns, personal finance columnist for the Dallas News, available here and here. It is ironic that when the US is debating moving towards a national retail tax, we in Canada are proposing to cut it.