The Shotgun Blog
Tuesday, January 27, 2009
Budget anticipation: permanent tax cut for those earning under 80,000?
While the federal budget, due to be released later today, will be a showcase of big government largess and NDP-like spending, there is hope today that at least one element of the budget isn't awful: A new leak suggests the Tories plan to introduce a permanent tax cut for those earning less than $80,000 per year.
Via the CBC:
"We've had a lot of information trickle out of the last couple of days," the CBC's Margo McDiarmid reported from Ottawa Tuesday as the capital awaited the official budget text. "We know there'll be about $13 billion of programs, including infrastructure programs.
"But new information has come out overnight on what also will be in the budget. We're going to hear that there will be permanent tax cuts for people who make under $80,000 — so, permanent broad-based tax cuts for the middle class we've heard the government talking about in the past — and also it plans to speed up corporate tax cuts."
Such moves could lead to a showdown with the opposition Liberals, whose leader, Michael Ignatieff, argues that broad-based, permanent cuts are a bad idea at this time.
Stephen Harper spoke with CTV, but wouldn't release any detailed specifics about the size of the tax cuts, or other, similar measures that might be less-than-awful in the forthcoming, deficit-fueling, big government, non-conservative budget:
"Some of those tax initiat[iv]es will involve getting money in consumer's pockets, so that ordinary people, working class people, middle class people, can spend money," Harper said, adding that the cuts will be "affordable" in the long-term.
[CTV's Ottawa Bureau Chief Robert] Fife said Tuesday that the budget will include "modest but permanent tax cuts" for anyone earning under $77,000 annually.
Meanwhile, the Liberals have said that cutting taxes for middle-class Canadians would throw the country into long-term deficits, and they've threatened to vote against the budget on that issue.
Well, Michael is right - look at what deficit financed Bush tax cuts did to the US. They are not sustainable especially with a 1.5 trillion overhang of healthcare liabilities. Harper is such a bad economist. Perhaps we need to save or pay off debts rather than spend. Expending finite resources is bad economics to anyone engaging in just a smidgen of common sense.
Posted by: Faramir | 2009-01-27 12:12:00 PM
Chop a lot of government spending and institute a flat tax rate of between 15% and 17%. Challenge the Liberals, the NDP and the Bloc on their politics of spite and let the chips fall where they may. You will have to fight the battle of the media vigorously.
Posted by: DML | 2009-01-28 12:51:59 AM
The "permanent tax cut" for those earning $80,000 or less amounts to - are you ready for this? - $307 for someone making $80,000. That's less than a 0.4% tax saving. Whoopee!!!
Everyone should feel rich now, and grateful that the government is being so generous with our money.
Posted by: Grant Brown | 2009-01-28 12:57:28 AM
The comments to this entry are closed.