Sunday, May 16, 2010

Potential Liberal Policy: Increase Consumption Taxes to Decrease Income Taxes

In light of the upcoming Liberal Policy Convention in Vancouver I will be posting potential policy proposals for criticism. All comments are welcome and encouraged.

POLICY RESOLUTION – Increase Consumption Taxes to Decrease Income Taxes

WHEREAS the Liberal Party of Canada believes strong social policy and strong economic policy are mutually dependent and that to have necessary social programs a strong economy is required;

WHEREAS having a prudent and efficient tax system would ensure Canada has a solid financial foundation on which necessary social programs can develop;

WHEREAS most taxes negatively affect the economy, those taxes with the least negative impact should be utilized while reasonably maintaining the goal of progressive taxation;

WHEREAS consumption taxes negatively affect spending, income taxes are far more distortionary to the economy as they restrict workers’ willingness to work and thus undermine Canada’s productivity;

WHEREAS Canadians want to keep more of their hard earned money and have a strong incentive to increase our nation’s productivity;

BE IT RESOLVED that the Liberal Party encourage the Government of Canada to decrease the more distortionary income tax rate with the offset of an equal increase in federal consumption tax while proportionally increasing GST or HST rebates for lower income earners to continue the fostering of progressive taxation.

1 comment:

Northern PoV said...

sound policy!

But don't be surprised when our infantile media will echo the Cons and call it green-shift version 2.