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
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>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]
>> .............................................
>>
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