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Wednesday, April 15, 2009

Tax-and-spend Grits are at it again

The tax-and-spend Grits are at it again with Liberal leader Michael Ignatieff suggesting the federal government could have to raise taxes to rein in the country's debt. Mr. Ignatieff tempered his suggestion somewhat by conceding that federal taxes will not be hiked at the expense of hurting the economic recovery. 

In response to a question at a meeting of the Cambridge Chamber of Commerce, Ignatieff said “an honest politician” cannot exclude a tax hike as an option to dealing with a deficit. Then in typical gobble-gook fashion that is so popular with the Grits, Mr. Ignatieff's press secretary later said the Liberals have “no plan and no desire to raise taxes” during a recession.

They just do not get it: taxes are a drain on the economy and a killer of jobs and economic growth, not to mention a cruel abuse of power.

Long before the issue of raising taxes arises, there needs to be a serious cut back in government expenditures—raising taxes is absolutely the last resort for any government, but no one is ever going to convince the Grits of that.

When the economy does recover—and it will—government expenditures will also recover and much of the deficit will disappear. If the deficit remains stubbornly high, then the federal government will need to reduce its expenditures to match its revenues. Or better yet, cut taxes to further stimulate consumer spending and business investment, which in turn will lead to higher revenues.

6 comments — This is a moderated blog and comments will appear when approved. Please don’t resubmit if your comment doesn’t appear immediately, and please do not post material that is obscene, harassing, defamatory, or otherwise objectionable.

  1. See the big problem here is that people are actually listening to Mr Ignatieff.
    He thinks that he can just speak, and as long as he looks and sound good doing it then he has hit the proverbial home run.
    Listen folks this is not going to end well if people are going to spend time thinking about what he says.

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  2. If not by tax increases and given your inability to curb discretionany spending, so how do Canada's Western, Reformer, Sepratists CPC party plan to solve the current fiscal mess they have created? After all you inherited a bloated treasury that you have pissed away with your vote pandering tax cuts!!! Tory times are truly tough times!!

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  3. Ken S, I answered your question in my post. Instead of silly insults, actually read the post, God forbid you learn something.

    I repeat:

    "When the economy does recover—and it will—government expenditures will also recover and much of the deficit will disappear. If the deficit remains stubbornly high, then the federal government will need to reduce its expenditures to match its revenues. Or better yet, cut taxes to further stimulate consumer spending and business investment, which in turn will lead to higher revenues."

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  4. Tory times are truly tough times. Who else but Canada's Reform, Western Sepratist CPC party could piss away a bloated treasury in 3 short years. Your tax cuts amounted to nothing more than vote buying. They solved nothing, except for balloning the debt. So tell me given your unwilling to cut program spending or won't raise taxes, how then do you propose to cut the debt? More pledge, but not spend stimulus most likely!!

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  5. The Conservatives can't even cut a measly few million out of "arts" funding without people (liberals) freaking out, so how are they supposed to "cut program spending"? They tried to cut funding to political parties and all opposition parties freaked out and threw us into the coalition crisis. Trust me the conservatives are willing to make cuts, it's the other parties that won't allow it to happen. And do you think maybe it could be the "worst financial crisis since the great depression" that might have pissed away the bloated treasury? It will recover when the economy recovers, raising taxes right now would be a disaster. Do you even use your own brain to reason things or do you just repeat what the toronto star and cbc liberals brainwash into your head? Wake up, you are being lied to.

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  6. Ken:

    That strategy your using, its old man, real old.
    Its also evident that the liberals don't have a plan other than the one they won't tell us about.
    Well not quite. Iggy has that bad habit of thinking out loud.
    Wonder what else he's got up his sleeve besides a tax increase, enshrining Quebec special status in the constitution perhaps? Or maybe that other nugget the liberals haven't denounced, abolishing the NWSC?

    Here, one last demonstration to point out the problem for you.
    Two election promises.
    First one by Chretien: "the GST, we will kill it"
    Second one by Harper: "we will reduce the GST"
    Now heres the hard part for you, because you know the answer, which promise was followed through on?
    See the symbolism of that promise kept is what puts a stake through the heart of the liberal spin. Harper, regardless of how you may feel about him, isn't a blank page. Iggy, everytime he lets loose with one of his comments, just gets more fuzzy. You don't konw what the guy is going to say, and worse, you can't depend on him to keep the same opinion for any length of time.
    This unpredictability is what destroyed Martin after he took over from Chretien.
    You want to know where Iggy missed his chance to remove the doubts?
    It was when he convinced his leadership rivals to not contest his candidacy for liberal leader.
    He could have defined himself, instead he's going to let himself be defined by others that still have their eye on the liberal leadership.

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