Apparently, MP Gerard Kennedy, the Liberal infrastructure critic supports tax hikes. Yes, there’s been some back-peddling on the part of Michael Ignatieff and other senior Grits, but from his comments it seems pretty clear that Kennedy would back an increase in federal tax. No one should be surprised, of course, as there is a significant number of members in the Liberal Party who, like Gerard Kennedy, would be very much at home in the NDP.
Socialists always believe in raising taxes, because they have no confidence in the ability of a free-market economy to create growth in our tax base. And they have no stomach whatsoever for cuts in government spending. As it happens, those are the very things that will help us get back to balanced budgets in about five years, without raising taxes.
The Liberals make a big deal over the fact that Employment Insurance (EI) premium rates will rise in the next five years in order to eliminate the deficit in EI created by burgeoning unemployment rates. It is a tax on jobs they claim. Apparently, the government should allow the EI program to run up massive deficits without any adjustment in rates.
However, when the program was running large surpluses under the Jean Chrétien government, the Liberals did not use the surplus to reduce EI premiums, but moved the surplus into general revenues. No talk from them then about tax on jobs—of course not.
The Liberals have already demonized the very notion of a budgetary deficit to such an extent we can be very sure they’ll use the current deficit as an excuse to raise taxes the very first chance they get.