Canada’s labour productivity decline is making headlines across the country and raising concerns about our economic prosperity. More than ever, Canada needs tax reform to foster economic growth.
I certainly agree that Canada needs more capital investment. And I agree our income taxes should be more competitive, but comparing us to Alabama doesn't mean much. Does Alabama have the highest income tax rate in the US? The Fraser Institute tells us where we rank compared to US states.
While the average taxpayer (maybe even most) would be happy if their reduction in income taxes offset the increase in HST, it would not work for low income people and those on welfare. So welfare would need to be increased, and most government unions would argue they needed higher wages. By the time these additional costs are added in, the HST (or the deficit) would have to higher than we might think.
Of course she won't
I certainly agree that Canada needs more capital investment. And I agree our income taxes should be more competitive, but comparing us to Alabama doesn't mean much. Does Alabama have the highest income tax rate in the US? The Fraser Institute tells us where we rank compared to US states.
While the average taxpayer (maybe even most) would be happy if their reduction in income taxes offset the increase in HST, it would not work for low income people and those on welfare. So welfare would need to be increased, and most government unions would argue they needed higher wages. By the time these additional costs are added in, the HST (or the deficit) would have to higher than we might think.