McGuinty almost got it right this time...
Dalton McGuinty has a good idea but doesn't get the implementation right:
McGuinty floats using GST to fix fiscal imbalance
McGuinty wants Ottawa to collect the GST and then send a bunch of the money to the provinces for programs. I have a better idea. Ottawa should CUT the GST (or even better, income taxes), and let the provinces raise their PSTs or income taxes to cover their so-called fiscal imbalance. The money moves to the provincial governments. It's what the premiers want. But it forces the premiers to go to their electorate and say "we are raising your taxes"
The government that spends the money and delivers the programs should be the one to raise the revenue.
McGuinty floats using GST to fix fiscal imbalance
McGuinty wants Ottawa to collect the GST and then send a bunch of the money to the provinces for programs. I have a better idea. Ottawa should CUT the GST (or even better, income taxes), and let the provinces raise their PSTs or income taxes to cover their so-called fiscal imbalance. The money moves to the provincial governments. It's what the premiers want. But it forces the premiers to go to their electorate and say "we are raising your taxes"
The government that spends the money and delivers the programs should be the one to raise the revenue.
posted by Technical Bard | 09:45
1 Comments:
Harper made a similar suggestion during the election campaign. He blamed the fiscal imbalance of Ottawa's hoarding of tax dollars, and said that lower federal taxes would leave more money available for the provinces, thus fixing the imbalance.
There are clear differences between how residents of different provinces would like to be governed. There's no reason why they should have to share a government more than is necessary.
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