Wednesday, October 27, 2010

Which services should be eliminated to pay for the income tax cut?

Quick thoughts on the Premier's address:
  • Hope Global TV and Corus were well paid for broadcasting this. They've been loyal soldiers for the Liberals, deserving of rewards.
  • The tax cut offers something for the lower middle class, earning below $72,000. However, is that family or individual income? The devil, as always, is in the details and we won't know those until budget day next spring. Regardless, income tax reductions will be clawed back by higher user fees and other government charges. The tax cut is well less than cash recently scooped out of ICBC and, with electricity rates about to rise dramatically, money will disappear from taxpayer pockets. Remember, medical services plan charges are rising again in weeks and they are introducing new daily charges for hospital stays too. When Grandma is laid up with a broken hip, she better have more than $200 a week for hospital stay fees.
  • Campbell's aim is to reduce progressive income taxes and raise money through regressive user fees, excessive service charges and, also, consumption taxes. Ultimately, corporations will pay no tax, individuals will fund government almost completely.
  • The promise to improve early childhood education is strange since they have been in charge of the system for a decade and suddenly, the most untrusted government in history makes it a new priority. Can we trust them? I'm skeptical the provincial government that tolerates the highest child poverty rate in Canada suddenly cares about children. One more thing to make us go hmmmmm.
  • Gordo claims he has talked to ordinary folks and small business people. One of the latter complained about paying 7% more on haircuts so Gord reminded him that he saved $5,000 buying his truck.  The guy said, "Oh, I hadn't realized. HST is wonderful after all."  Question:  Is this small business guy smart enough to drive a new truck that cost more than $75,000? Apparently, Campbell told the story with slight variation at the UBCM. Did he think the reworked version was better?
  • Gord forgot the BC Rail scandal and the Basi/Virk settlement. He hasn't been able to talk for 7 years while it was before the courts so I thought he would be anxious to explain what really happened or maybe, at least, what his close friend Patrick Kinsella did for $300,000 to explain government to a government enterprise.
  • The speech was short and more or less empty. They've been working on this for months?  Perhaps the real story is that caucus wars caused a few elements to be removed at the last moment.
  • Campbell's approval rating is 9%. He is trusted by rather few. Why did he not address the single most important problem he faces?
  • Will Bill Good and other CKNW voices be asking callers which government services should be chopped to pay for the income tax cut?
Your reactions?
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10 comments:

  1. Excellent questions Norman....Given that nobody else will, clearly we, 'The Wild-Eyed Wingnuts of the Blogosphere', will have to watch the friendlies and hold their feet to the fire.

    Over at The Tyee, Andrew MacLeod has the differential on the savings in real dollars (not Mr. Campbell's selective percentages)...They go like this:

    "For someone earning $50,000, the cut Campbell announced today will reduce income taxes by $354. For someone earning roughly $72,000 or above, the difference will be $616. A person earning $20,000 will keep an extra $68 a year."

    So, once again, when you factor in the massive increases in flat rate user fees and consumption taxes....who wins?

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  2. Sorry, the link to Mr. MacLeod's post is here.


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  3. I noted his 1/2 hour bought and paid for by me and thee, only ran 25 minutes. My hunch is that he could no longer hold a caring and sharing face for a full 1/2 hour. The no tie, top button undone [look I am just one of you!] facade was very contrived. Perhaps a blazing fire, a hound dog, and his lovely bride would have helped round it off. I too loved the Mr. Haircut delusion [he couldn't come up with a name for the Press afterwards]. John Les was "just talking to a fellow the other day" or so he proudly proclaimed today on 'NW. Some grunion is coaching these Politicians, and that someone should be sacked, he/she is giving bad advice. Speaking from the heart as the Premier always does, he mispronounced 2 words on the Reader Board. I would have appreciated him commenting on the F.O.I. request that stated that his fellow figure skater Mr. Hansen had the Briefs regarding the H.S.T. on his desk prior to the Election, but perhaps he is saving that for his next love-in on the Bill Good Show.

    Cheers, Gary L.

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  4. Norm,
    He's trying the same tactic with us that he used to buy off Basi and Virk. Don't think it will work this time.

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  5. “It is said that power corrupts, but actually it's more true that power attracts the corruptible. The sane are usually attracted by other things than power.”

    Never truer than with Gordo the Great!

    Betcha he will receive an Order of Canada!

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  6. Reported by Global as $100,000 tax payer financed.

    I want my money back.

    The income tax cut is on the first $72,000 of income.

    David Schreck has a blurb on his blog.

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  7. Campbell and Hansen's whining about having to pay back, the $1.6 billion back, if the HST is removed. This was the total fault of, Campbell and Hansen, cramming the HST down our throats. The BC Liberals, cut off the debate and said, you are paying it anyway. The BC Liberals, can pay the money back, out of their own pockets. Their corruption is disgusting. We are sick of their, Nazi tactics, their lies, deceit and cheating to win. This phony BC Liberal party, should be dissolved. They are a blight, forced on the lives of decent BC citizens. They can dammed well, get our BCR back, our rivers back, our mill jobs back, from China. The 53% theft of Campbell's wage hike. The ministers 29% increase. Perhaps then, they can pay back Harper's bribe. Also, heads up everyone. Harper, Campbell and Hansen, have many pollution plans for BC.

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  8. Maybe the Liberals should start by paying the $100,000 spent on this purely political message by Campbell. Why should taxpayers pay for that commercial?

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  9. Uhhhhhh.....Didn't the guy who grew up dirt poor in Point Grey, surviving, one would assume, on the generous publically-available services of the day, tell Rick Cluff this morning that the whole shebang actually cost us $240,000?

    It's right at the beginning, here.

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  10. I remember those tough days on the University Endowment Lands of west Point Grey. It has been a core area of poverty for a long time, still unchanged. Campbell's father, a medical doctor and Assistant Dean of UBC's Faculty of Medicine died when Gordon was entering high school. In those days, I think doctors and university professors lived in near poverty and could barely support families. Life was so tough that, five years later, Gordon could not even attend UBC, where his family resided. He was forced to flee to New Hampshire and attend Dartmouth, a private Ivy League university more than 200 years old. I don't know what tuition was in the sixties but annual student costs are a touch over $52,000 today for a single student.

    ReplyDelete

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