Strange things are happening in the economy lately with a Looney that keeps getting higher instead of dropping the next day. That makes businesses depending on US customers cry for help. But a strong Canadian dollar has not kept us from working out advantageous trade deals with the Chinese and other trade partners. At the same time a tax cut has been announced but opposition parties are not happy that the money is not going to the families that need it. So people like Layton are against it and so is everyone else except the Liberals only because their word on paper would mean a vote of non-confidence and a consequential election they can't afford to have at this time.
Some are unhappy about their reduced spending capability across the border, it especially hurts people who live near the Canadian border and work in the US. But it hasn't affected the fir tree industry and that is going to be picking up soon. Americans come north for their fir trees. Wouldn't it be nice if every Canadian industry were like that for a change?
I don't know what to make of the tax cuts. That the government was advised to reduce the income tax and not just their sales tax is a starter but it really is not going to be felt by the average consumer, only by the rich guy. The other day the cut was rumored to be only one touching the tax on goods and services; but it looks like someone did some long term thinking and found out that a small cut there is not going to effect any great change. As the story goes, when it comes to the reduction in sales taxes by a half a point, it will make a difference to the big spender and that is going to be the wealthier guy. The poorer guy that doesn't even pay GST won't know the difference. So the rich get richer, again!
If there is going to be a federal cut on income tax that may stimulate certain new businesses that may be starting out. A lower tax would be an incentive for them to establish themselves.
This type of cut by the conservative government which is being criticized for doing so to gain a political edge, is different form the a more directed cut applied years ago and granted to students for them to pay their books or for low income families. The government has stated that it has already spent money on rebuilding infrastructure and in refurbishing the military but that doesn't sound right. As I remember with a resent Russian threat to claim the Canadian arctic from under our feet, we still only have a few outdated planes to do any kind of surveillance.
This is the second longest economic growth period since the Pearson years and that is well over 40 years ago. I wonder if there was such a tax cut back then or if the money stayed in government hands.
