Wednesday, January 21, 2009


Tax Cuts Are Wrong!

Tax cut will not stimulate the economy. Past experience has shown that at most tax cuts have only a 20% stimulus and at times of economic uncertainty and low consumer confidence only up to a 10% stimulus. Most tax cuts will go to pay down debt, go into savings, like TFSA which will further reduce government revenue, and if spent go on imports that will stimulate other economies.
A true stimulus package looks for ways to get Canadians working. Infrastructure is an excellent way. There are many municipal projects across Canada from new roofs on arenas or libraries to new roads, sewers and transit that have already had their EA assessments completed. Shovels can go into the ground very quickly generating jobs and construction material demands. Then there are the soft infrastructure projects, such as, affordable day care so parents can work, higher education and job retraining,and social housing which support those in need and less affluent.
These types of projects create immediate jobs for Canadians who become tax payers which help us pay down the deficit. This will prepare Canada for the new greener economic structure as many of those manufacturing jobs lost will not return, just as they didn't after the last Conservative recession in 1991.

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