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Tory plan would scrap Liberal tax cut on low income earners
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| Orko |
| quote: | A Tory plan to raise personal income taxes on low income earners is part of an overall tax strategy that will result in more tax relief for Canadians, Tory MP Jason Kenney said Friday.
Kenney was reacting to a CBC News story that revealed part of the Tory tax plan if they take power is to reverse a Liberal tax cut introduced before the election.
"Our priority is broader and deeper tax relief than what the Liberals are willing to offer," Kenney told CBC News Online.
Last November, before calling the election, the Liberals cut personal income taxes – a one per cent reduction to the lowest tax bracket, from 16 to 15 per cent, and an increase of $500 to the basic personal exemption.
The cuts will mean a tax rebate for 2005, as less tax is being knocked off Canadians' paycheques for 2006.
The Conservatives voted against those tax cuts in November, but they became law. Late last year, Conservative Leader Stephen Harper's staff told CBC Online the Conservatives would let the tax cuts stand if they win the election.
But the Conservatives called CBC this week to say that while they would allow the Liberal tax cut to stand for last year, meaning Canadians will still get that tax rebate, they intend to immediately raise personal income taxes if they are elected later this month.
The Conservatives say a Stephen Harper government would raise the rate on the lowest tax bracket back from 15 per cent back to 16 per cent in their first budget, probably in April. As well, the basic exemption, income on which no tax is charged, would be dropped by $400 in the same budget.
A Tory official acknowledged to CBC News that would likely mean taking back the money taxpayers are saving on their paycheques for the first four months of this year.
The Tories refused to be interviewed on camera for the story. But Kenney later told CBC News Online Friday that this information is not new and referred to Harper's Dec. 1 news release regarding the GST cut.
"We would suspend [the Liberals] future measures in order to deliver broad-based and responsible tax relief, which will ultimately save Canadians more in their taxes and will be affordable in terms of the delivery of federal services," the release said.
"The immediate result of cutting the GST will be $4.5 billion back in the pockets of ordinary Canadians. When the GST cut is fully implemented, the total benefit will be much greater," the release said.
Kenney said they voted against the Liberal tax cuts because they disagreed with their fiscal priorities, adding they would have "spent smarter and cut taxes deeper."
The Tories have also said that their own tax package has not yet been fully announced. |
source
I am really confused about this. Would anybody please care to explain how this will save Canadians money in the long run? I understand that they will raise income tax, but then lower GST, would this actually acount for more money in our pockets?
It seems like this plan punishes the lower income earners, and would only help those who have lots of disposable income.
EDIT: now that I think about it. Their thinking is, that by helping the big spenders save on the GST, Canada as whole will save more money, but not more individuals. This way, the rich who spend the most will save lots, but those who do not spend much(low income earners) will pay a little more tax, and the net effect would be greater savings? |
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| rabbitjoker |
Does a vote for the Conservative party mean:
- Higher personal income taxes
- Co-operation w/ the separatists
- Possible economic turmoil due to reduction of a consumption tax (GST) |
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| Orko |
| quote: | Originally posted by rabbitjoker
Does a vote for the Conservative party mean:
- Higher personal income taxes
- Co-operation w/ the separatists
- Possible economic turmoil due to reduction of a consumption tax (GST) |
Even though I am not in the lowest income tax braket, this sounds retarded to me. Lets over the poor! |
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| drgoodvibe |
| quote: | Originally posted by rabbitjoker
Does a vote for the Conservative party mean:
- Higher personal income taxes
- Co-operation w/ the separatists
- Possible economic turmoil due to reduction of a consumption tax (GST) |
these three things are very unconservative.. how strange.. Just another reason not to vote for them. |
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| Fir3start3r |
| quote: | Originally posted by Orko
source
I am really confused about this. Would anybody please care to explain how this will save Canadians money in the long run? I understand that they will raise income tax, but then lower GST, would this actually acount for more money in our pockets?
It seems like this plan punishes the lower income earners, and would only help those who have lots of disposable income.
EDIT: now that I think about it. Their thinking is, that by helping the big spenders save on the GST, Canada as whole will save more money, but not more individuals. This way, the rich who spend the most will save lots, but those who do not spend much(low income earners) will pay a little more tax, and the net effect would be greater savings? |
Concerning the source, I don't find this article all that surprising; be careful when quoting state-run media...
The answer is right in your story however; the Tories haven't fully released their tax incentive as of yet and the GST cut just makes more fiscal sense anyways.
Oh what a difference the source makes...from the Globe and Mail
| quote: |
Tories to repeal low-income tax cuts
Saturday, January 7, 2006 Posted at 11:38 AM EST
Canadian Press
Ottawa — Conservative Leader Stephen Harper says his government would reverse Liberal tax cuts for low-income earners passed just before the election was called.
But Mr. Harper suggested he'll offer his own tax package for middle- and low-income Canadians on top of the two-per-cent cut in the GST promised last month.
He offered few details during a campaign stop in New Hamburg, Ont.
The Liberal government's pre-election fiscal update last November increased the basic personal exemption by $500 and trimmed the tax rate at the bottom income bracket to 15 per cent from 16 per cent.
The Conservatives would allow Canadians to get their rebate for 2005 before raising the rate on the lowest tax bracket back to 16 per cent in their first budget and reducing the basic personal exemption by $400.
Liberal Leader Paul Martin is accusing Mr. Harper of planning to increase the tax burden for middle- and low-income families in order to pay for campaign promises he hasn't properly budgeted for.
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>>Source<<
You'll notice in the CBC source that they totally fail to mention that Harper has plans to replace the Liberal policy.
In fact, the Tories released this:
| quote: |
Stephen Harper announces tax reductions for Canadian charities
07 January 2006
Will eliminate capital gains tax on donations of stocks to charities
Today in New Hamburg, Ontario, Stephen Harper announced that a Conservative government would remove the capital gains tax on listed stocks donated to charities. This measure is part of the Conservative plan to reduce income taxes that includes a broad range of measures announced in the campaign.
“Canadians have a proud tradition of charitable giving,” said Mr. Harper. “Governments should make it easier for Canadians to support charities of their choice.”
About one quarter of all Canadians give to charity, with the average donation being $1,200. In 2004 the amount donated to the nearly 80,000 charities in Canada came to just under $7 billion dollars. Currently, donations of listed stocks to a registered charity pay half of the normal rate of capital gains tax. Eliminating the remaining capital gains tax will cost $250 million over five years.
The charitable sector plays an invaluable role in helping Canadians and making our communities strong. They provide important services and often partner with governments to provide services Canadians need and depend on. Eliminating capital gains taxes on donations of listed stocks will put millions of dollars into this important sector – a sector which employs millions of Canadians whether as paid employees or as volunteers.
“Canadians should not be penalized when they contribute to charities,” concluded Mr. Harper. “That is why we are eliminating this tax on charities.”
The Conservative Party will create more opportunity for individuals to support charities in Canada.
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What does this mean?
The Liberals, for their part, have not addresses charities in their platform. Taxes on charities will be higher under a Paul Martin government.
Here is a list of charities that will benefit from the Conservative policy announcement...
- Foster Parents Plan
- Amnesty International
- Canadian Cancer Society
- Canadian Diabetes Association
- Canadian Wildlife Federation
- Greenpeace Canada
- London Humane Society
and thousands of others that will not benefit from the Liberal platform.
So in reality-land, the poor are going to be winning not losing as the Liberal-left-wing-state-run-media would have us believe...;) |
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| Jayx1 |
| quote: | Originally posted by rabbitjoker
Does a vote for the Conservative party mean:
- Higher personal income taxes
- Co-operation w/ the separatists
- Possible economic turmoil due to reduction of a consumption tax (GST) |
They will scrap the liberal plan. But they have yet to release their own plan on income tax. Something the CBC has conveniently overlooked. (what else is new?). Perhaps the conservative one will be even better?
OF course you have to cooperate with seperatists. Just like how the liberals needed their help to pass many bills in the house in the past. They are an elected group of individuals like everyone else. Perhaps if the liberals hadnt pissed off the french so much with adscam the seperatists wouldnt be poised to win the most seats they have ever won this time around.
economic turmoil? WHAT??? how can lowering the GST bring economic turmoil? IF anything it will stimulate the economy. |
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| Shamen DJ's |
| quote: | Originally posted by Jayx1
They will scrap the liberal plan. But they have yet to release their own plan on income tax. Something the CBC has conveniently overlooked. (what else is new?). Perhaps the conservative one will be even better?
OF course you have to cooperate with seperatists. Just like how the liberals needed their help to pass many bills in the house in the past. They are an elected group of individuals like everyone else. Perhaps if the liberals hadnt pissed off the french so much with adscam the seperatists wouldnt be poised to win the most seats they have ever won this time around.
economic turmoil? WHAT??? how can lowering the GST bring economic turmoil? IF anything it will stimulate the economy. |
1) As for the separation movement, I think the best solution would be to remind Quebec that if they separate, yes they would be their own country but they would loose ALL benefits to being part of Canada. They would loose their health care, and they would have to find their own trading partners, and be responsible for their own economic wealth or lack of. I think alot of seperatist dont realize the difficulty of becoming their own country, and that the Balcanization of Canada wouldn't benefit anyone, especially themselves. The Separatist movement didn't start with Adscam and I really dont think the Conservatives handled the issue very well in the 1980s either. |
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| Shamen DJ's |
| quote: | Originally posted by Jayx1
They will scrap the liberal plan. But they have yet to release their own plan on income tax. Something the CBC has conveniently overlooked. (what else is new?). Perhaps the conservative one will be even better?
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It's getting a little close to the election. If the conservative tax plan is so great they should have already let everyone know ALL the details, so they have time to process the information, and make an educated vote on election day.
In the U.S. the conservatives ( Republicans ) have cut taxes most for the extremely wealthy, while health care costs for the poor skyrocket, along with the cost of college tuition. Many low income people have seen no tax reduction. They are also cutting school lunches for poor inner city children, and federal enforcment for child support payments. They have shown they really dont care about the poor. Now many Republicans are snared in a scandel for taking bribes and returning them with policies that favour corporate interest.
From what I've seen in Canada
Conservatives - Represents large corperations & religious right
Liberals - Not perfect but represent the mainstream
NDP - Left of center
Quebecois - Represents interest of Quebec, and only Quebec. |
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| DigiNut |
| quote: | Originally posted by rabbitjoker
Does a vote for the Conservative party mean:
- Higher personal income taxes |
Simply because they reject Paul Martin's tax plan which still imposes an absurd burden on middle-class income earners and small- and medium-sized businesses does not mean that they don't have their own plan or that they plan to raise taxes in the long haul.
It takes time to lower taxes - they have to make room in the budget first, and I'm obviously speculating here, but they may be repealing Martin's proposed cut in order to prevent the country from immediately going into debt. As we all know, higher debt means higher taxes in the long run.
| quote: | | - Co-operation w/ the separatists |
You still haven't provided any evidence of this.
| quote: | | - Possible economic turmoil due to reduction of a consumption tax (GST) |
I agree that income tax cuts are more fiscally conservative than consumption tax cuts, but please explain how this could result in "economic turmoil". |
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| DigiNut |
Update:
According to the CPC party strategists, they would honour Martin's "cut" for the first year and then introduce their own initiatives (which would obviously come with the budget).
That idiot Duffy is calling this a "reverse Robin Hood" - he doesn't seem to realize that a 2% GST cut affects low-income earners much more than a 1% income tax cut. Everybody pays the GST on almost every product and low-income earners have very little disposable income to begin with; income tax is already subject to brackets and the personal exemption. |
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| Jayx1 |
| the liberal biased media is getting desperate as is prrof with this story. |
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| malek |
| quote: | Originally posted by Jayx1
They will scrap the liberal plan. But they have yet to release their own plan on income tax. Something the CBC has conveniently overlooked. (what else is new?). Perhaps the conservative one will be even better?
OF course you have to cooperate with seperatists. Just like how the liberals needed their help to pass many bills in the house in the past. They are an elected group of individuals like everyone else. Perhaps if the liberals hadnt pissed off the french so much with adscam the seperatists wouldnt be poised to win the most seats they have ever won this time around.
economic turmoil? WHAT??? how can lowering the GST bring economic turmoil? IF anything it will stimulate the economy. |
+1 |
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