June
7, 2004
Tax
Cuts and Deficits
Stephen
Harper is so proud of his platform that he released it on
a Saturday when most newspapers don't publish on Sunday. Coming
on the eve of the 60th anniversary of D-Day, and the 6th game
of the Stanley Cup, it is as if Harper tried to divert attention
from his platform, as well he should.
The Conservative
platform closely resembles what Gordon Campbell tried in BC.
It slashes services while pretending that government revenue
will grow even though tax rates are cut. They just don't get
it; tax cuts do not pay for themselves. Personal income tax
takes in almost half of all revenue at the federal level.
Harper puts most of his tax cuts in the last year before the
next election, fiscal 2008-09. By that time his tax cuts would
reduce income tax revenue by about 16%, and therefore they
would reduce total revenue by 8% but he shows total revenue
going up by 5%. That is voodoo economics that is guaranteed
to produce either massive deficits or very deep cuts to services.
Media
attention has focused on the $13.1 billion in service cuts
Harper says he would make in his first two years. That's only
the beginning. Things get really ugly with his bad math in
the last two years of his hoped for term.
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