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Tuesday, October 21, 2008

Saskatchewan cuts taxes

Premier Brad Wall of Saskatchewan announced tax cuts today, supposedly the largest in the province's history (not really hard to believe).  Sadly almost anything can be called a tax cut these days.  In this case we are not talking about a simple shaving off a few percentage points from every income bracket.  Its not all bad though, there is some good here.

First the bad;

Tax credits are not a tax breaks.  Any time you get a check from the government, it is a social program.  Wall is taking a page out of Harper's book and giving an enlarged child tax credit and spousal exemption.  This is basically the government giving people money for making life style choices that the government approves of.  We can argue the merits of this of course, but the basic fact remains that this is a form of social engineering.

Now for the good;

Premier Wall has increased the basic income exemption, supposedly taking 80 000 taxpayers off the tax rolls.  It does not make sense to tax the poor.  You may complain that it is the poor and not the rich that use resources and so the poor should pay into it, but there is a fallacy in that.  The poor uses more of the public resources because they have fewer of their own.  Basically what we do is take their money away and then give it back in social programs.  It makes far more sense to let them keep their money and have fewer social programs. Yes this means that the middle class and wealthy are taking on a greater percent of the tax burden.  But as long as their actual individual's taxed amount does not increase what does that really matter?

It is, however, a little unfair that not everyone benefits directly from increasing the income exemption.  So in the spirit of fairness (and freedom) I implore Mr. Wall to give both general and exemption tax cuts.  To pay for it you can do away with those idiotic tax credits.    

Posted by Hugh MacIntyre on October 21, 2008 in Canadian Provincial Politics | Permalink


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Ok, lemmie get this straight... Wall pulled an Obama and you're celebrating?

Posted by: Richard Evans | 2008-10-21 11:08:44 PM

I wouldn't call this post a celebration...what do you mean pull an Obama? Wall isn't raising taxes on the wealthy.

Posted by: Hugh MacIntyre | 2008-10-22 8:10:06 AM

It was pointed out to me that the exemption applies to everyone. So people's taxable income is going down in every tax bracket. (I did know this but for some reason forgot it)

Posted by: Hugh MacIntyre | 2008-10-22 8:14:09 AM

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