Friday, July 13, 2007

Targeted Taxes Hurting

From here:
"The general philosophy that we need to reduce tax rates and broaden tax bases is being eroded by federal and provincial targeted tax relief," the study says.

"If governments remain on this tax reform path, the accumulation of targeted tax relief measures will have a significant fiscal cost, which could be better used to finance broad rate reductions. Tax rate reductions encourage greater work effort, investment and risk-taking without governments putting themselves in the position of picking winners from losers, a task at which they rarely succeed."

...

Political analysts say these targeted tax cuts are aimed at winning over specific constituencies that reside in politically important parts of either the country or province.

"You load up system with all these special preferences, then down the road the politicians realize they could have had a big tax rate cut instead," Mr. Mintz said in an interview.

Political faithful and spinsters backing the introducers of all this subsidization through the tax system (most notably, Tories) will toss up their hands at this one and say "Well, it works!" when confronted with this kind of talk.

How does it "work?" Well, it pushes governments like Harper's towards a majority by winning votes... at the expense of Canada and Canadians.

It works when all you care about is winning and being in power.
Say, isn't that what we used to bash the Liberals for doing?

I could swear that I remember hearing Tories on their high horses saying "I care about more than winning - that's why I could never be a Liberal."

I guess those particular horses went to the glue factory. I wonder if that's where the Conservatives' concern about what's best for Canadians ended up as well.



h/t for the link goes to Countering the Nanny State

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