Monday, September 17, 2007

semantics vs. facts

I suspected that this might become an issue with the PC and NDP messaging calling the health tax the biggest tax increase in Ontario's history. It will be interesting to see how/if the PCs respond.

(As for the NDP response that you need to talk about inflation-adjusted dollars, the Liberals were using percentages of GDP, income and government revenue, not real dollar amounts, so unless it's a result of me missing my coffee this morning, I'm not sure how the amounts could be considered nominal.)

2 comments:

Ken said...

The way to measure the biggest tax increase is to take the nominal value of each tax increase and then to discount them all to some baseline year.

Saying a tax increase isn't the biggest because it has a less percentage change in something like government revenue is grasping at straws. Only because spending has way outpaced inflation does this make the Liberals health tax not the biggest.

The question is did the NDP raise taxes by more than about $1.95B in 1992 or the PC's by $1.12B in 1981?

Using the numbers of % increase based on GDP and revenue (that the article claims the Liberals produced and PC/NDP don't dispute: NDP 1992 increase of about $2B of 1992 dollars, PC 1981 increase of less than $700M in 1981 dollars (I was using $132B for gdp in 1981, I think this is correct?).

So it is certainly bigger than the PC increase, and due to rounding of numbers I can't say if it is much different than the NDP increase in 1992.

Janet said...

See, and that's what I was expecting (or something like that, I don't actually care that much if it was bigger or not, I just think it's stupid to say it is if it's not). But I think the PCPO waited too long to respond - anyone who cares about this stuff already has it in their head that the PCs didn't have a response to the Liberal accounting methods.