Friday, January 2, 2009

Here’s the reason we have no confidence.

Flaherty is now considering a tax cut as a way to boost our confidence.

However as reported back in November by their own Parliamentary Budget Officer it was Harpers and Flaherty’s tax cuts to the GST a year ago that has moved Canada into it’s current recession, not the planned stimulus programs they are working on.
Parliamentary budget officer Kevin Page told MPs yesterday that Canada's deficit next year could be as high as $13 billion and that Conservative government decisions to cut the GST and raise government spending are to blame, not global economic events.
Now Flaherty says he's reviewing options for more tax cuts because we, the consumers are growing pessimistic.
Corporate tax cuts and the new tax-free savings accounts that came into effect on Jan. 1 will help stimulate the economy, Mr. Flaherty said Friday, but added he's considering other measures for the Jan. 27 budget.
Well not really Jim, they will only be positive a year and half from now, if you don't loose your job this year and a corporation actually makes a profit in 2009.

Your ideological, fiscal bullshit is the reason we are loosing confidence Jim.

At a time when we are being told to have more confidence and continue spending money on purchases, this government tries to spin the introduction of their new savings program as a solution.
It is important is that it was important to improve Canadians' capacity to save for future spending. Flaherty explained.
A savings in interest that even at it’s maximum level would be negated with the increase in unemployment contributions staring January.

Harper and Flaherty have no idea how to handle this mess they are creating other than rehashing their ideological play book, only this time for the opposite reasons.

We're screwed.



The Rational Number said...

If Canada's economy is dominated by exports and commodities, how would stimulating the domestic consumer market help anyway?

GST cuts will only save money for people who're purchasing anyway. I doubt any further cuts would provide much stimulus at all, but would increase the deficit.

Beijing York said...

Inflation ate up any GST tax cut savings for us. Mind you, we weren't in a position to make big ticket purchase items but in terms of every day necessities, it had zero impact.

I had to open up a separate account recently and the bank adviser was promoting the tax free savings program. I said that I wasn't in a position to benefit from it. He claimed you only needed to set aside as little as $1,000 a month. As if that were a possibility.