john courtneidge
Sat, 16 Oct 1999 03:43:48 -0700
Dear futurework friends, Another capital scam ! Thus, is the importance of a coalition - to contest the lies *and* promote the solutions. Is that to be a Canadian or international coalition ? Hugs j ********* ---------- >From: "S. Lerner" <[EMAIL PROTECTED]> >To: [EMAIL PROTECTED], [EMAIL PROTECTED] >Subject: FW Phony Tax Revolt: Murray Dobbin (fwd) >Date: Fri, Oct 15, 1999, 1:49 pm > >>Date: Thu, 14 Oct 1999 15:13:27 -0700 >>From: Murray Dobbin <[EMAIL PROTECTED]> >>To: [EMAIL PROTECTED] >>Subject: phony tax revolt >> >> >>The crisis of high taxes is a phony crisis >>The crisis of high taxes is a phony crisis >>The crisis of high taxes is a phony crisis >> >>By Murray Dobbin >> >> >>Following on months of scare mongering by the National Post, Canadians >>now face the country's three largest business lobbies joining together >>in a deafening call for massive tax cuts. The call will be repeated and >>repeated in the hope that Canadians will gradually give in and accept >>the message. It is a repeat performance of the deficit hysteria of the >>early nineties and like that campaign based on carefully constructed >>myths. >> >>Let's examine some of them. First and foremost, is the myth about how >>high corporate taxes are in Canada. Examining OECD figures reveals that >>Canada's corporate tax regime places us in the middle of the pack of 29 >>industrialized nations. But what about our main competitors? The >>international firm KPMG has done several studies that show Canada's >>effective corporate income tax rate (the actual rate of taxes paid) is >>very competitive. In on such study, comparing Canada with Britain, the >>US, Germany, France, Italy, and Sweden, Canada had the lowest tax rate - >>27.4% versus 40% for the US. In addition, respecting the two other major >>taxes affecting investment, payroll taxes and property taxes, Canada was >>significantly lower than the US and the other countries examined. >> >>The loudest calls for tax cuts are aimed at personal income taxes >>compared with the US. The argument is made that we have to remain >>competitive with the US in being able to attract high skilled workers >>and to reverse the brain drain. The brain drain argument persists even >>though the data shows that in fact Canada has a net brain gain - we lose >>8,000 university graduates to the US while gaining over 32,000 from >>other countries. Most of those we lose are in the health field, forced >>to emigrate because of spending cuts. >> >>Two studies indicate that though our personal taxes are higher in Canada >>than in the US, when other factors are added in the differences >>disappear. A study by Standard and Poor's DRI revealed that when you >>take account of the money Americans have to spend in the private sector >>for health care and education, the so-called "tax burden" is virtually >>identical in the two countries. Supporting that conclusion is a study >>done by Michael Wolfson, the director general of Stastcan. It revealed >>that the average Canadian family has more take-home pay than their >>American counterpart: $30,200 versus $29,500. Only in the top one-fifth >>of income earners do Americans have a higher take-home pay - in the >>bottom four quintiles Canadian do better. >> >>It is ironic that the tax-cut advocates pitch their appeal on the basis >>of job creation when for the past ten years these same voices have >>lobbied hard to keep inflation low and unemployment high. But in any >>case the argument that tax cuts will actually increase tax revenue >>through economic stimulation doesn't hold up either - unless those cuts >>are given to the lowest income Canadians who are obliged to spend all >>they earn. According to the Ottawa firm Informetrica, the most >>stimulative tax cut would be the GST. A $100 million cut here would >>produce 55,000 jobs. But a $100 million in increased government spending >>on medicare or education would result in 70,000 new jobs, on child care, >>130,000 jobs. >> >>Perhaps the most dubious part of the tax cut campaign is the myth that >>there is "tax rage" in the country, that Canadians are demanding tax >>cuts. In fact, Canadians have shown in poll after poll that they want >>more money spent on health care and education. The most comprehensive >>polling in the country, conducted by Ekos in its yearly "Rethinking >>Government" study, asked people what the federal government's priority >>should be. Tax cuts placed seventh, behind health care, education, child >>poverty, improving productivity, supporting children and families, and >>reducing the national debt. Even in Ontario, in the middle of the last >>provincial election, an Angus Reid poll revealed that 53% wanted the >>government to forget the tax cut and spend the equivalent amount of >>money on health care and education, while 22% said forget the cut and >>bring down the deficit. >> >>The purpose behind the tax cut campaign is clear and it has nothing to >>do with job creation, international competitiveness, or the brain drain. >>It has to do with permanently lowering the government's revenue so that >>its capacity to provide public services is diminished, clearing the way >>for increased privatization of health, education, and other services. >>Canadians in their vast majority do not want this. But if they fall for >>the tax cutters propaganda that is what they will get. >> >> >> -30- >> >>Murray Dobbin is a Vancouver writer and broadcaster. His latest work is >>"Ten tax myths" has just been published by the Canadian Centre for >>Policy Alternatives. The study is available on the CCPA's web site >>at: www.policyalternatives.ca >> >> >> >> >> ............................................. >> Bob Olsen, Toronto [EMAIL PROTECTED] >> ............................................. >> > > > > >