Report takes on tax 'myths' (Canada)

[S. Lerner]

>>
>>                Monday, October 4, 1999
>>
>>                Report takes on tax 'myths'
>>
>>                             By SUE BAILEY -- The Canadian Press
>> OTTAWA -- Corporate Canada's call for tax cuts is a cleverly disguised
>> bid to undercut social programs, says a report being released today by
>> the Canadian Centre for Policy Alternatives.
>>
>> "Couched in terms of job creation and 'relief' for ordinary citizens,
>> this campaign is designed to permanently lower government revenues,"
>> writes author Murray Dobbin in Ten Tax Myths.
>>
>> The result would "further weaken the ability to deliver social programs,
>> redistribute income, and manage the economy in a way that benefits all
>> of us and not just a privileged few," concludes the British
>> Columbia-based writer and broadcaster.
>>
>> His 34-page report, culled from Statistics Canada figures, "mainstream"
>> economic reports and other sources, is touted as the left's response to
>> persistent calls for general tax relief.
>>
>> Dobbin argues that tax cuts, if they happen at all, should be aimed at
>> low- and middle-income Canadians -- not the rich.
>>
>> "When businesses or political parties call for broad-based, deep tax
>> cuts they're appealing to people's selfishness," he said in an interview.
>>
>> "They're saying to older people: 'You're don't go to school anymore, why
>> should you pay for education?' And to young people: 'You're not getting
>> sick, why should you pay for medicare?'"
>>
>> "If you look at the polling, the vast majority of people don't put tax
>> cuts high on their priority list," Dobbin said. "In fact, they put it
>> quite low if you ask an open-ended question."
>>
>> Canadians would even pay more for the programs their taxes finance, says
>> his report.
>>
>> "In truth, the vast majority of Canadians recognize that, if we want good
>> government and the services it provides, we must pay taxes."
>>
>> Dobbin disputes claims that Canadians are generally overtaxed, that
>> corporate tax is too high to encourage investment, and that it would be
>> too difficult to cancel the hated Goods and Services Tax.
>>
>> Business interests would gain if less tax revenue went to potentially
>> lucrative medicare, education and other public programs, he suggests.
>> Weakened public services would mean more demand for private,
>> profit-making alternatives.
>>
>> "It's not so much a conspiracy," Dobbin said. "It's in the interest of
>> big business to do this.
>>
>> "We spend $72 billion a year on health care. Opening that up to
>> investment where profits could be made would certainly be in the
>> interest of the corporations."
>>..............................
>>
>>
>>   .............................................
>>   Bob Olsen, Toronto      [EMAIL PROTECTED]
>>   .............................................
>>
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