Sales tax cut promise does not make fiscal sense
Our federal government’s budget is hundreds of billions in deficit – and British Columbia is hundreds of million over budget because or virus pandemic spending.
The harsh reality is that money has to be paid off in some form, and taxation is the only source of revenue government has. As much as some elected officials seem to dream, there is no money tree orchard anywhere, the bills will have to be paid. There are no sources of income for governments other than taxpayers.
Think about that for a while – we’re running up our collective credit card beyond the max.
That’s why it’s so incomprehensible that anyone would promote reducing government revenue.
That’s why we have to palm-slap our foreheads at B.C. Liberal leader Andrew Wilkinson’s promise to do just that by setting the provincial sales tax at zero for one year and at three per cent the following year. He hasn’t said how he would replace this lost income.
You don’t have to be a financial genius to know this would impact government revenue, unquestionably limiting government’s ability to pay the bills, by adding to the accumulated debt. That debt clock keeps ticking to the point where even paying only the interest becomes a daunting challenge. The cuckoo has been chirping the alarm for some time.
All this is based on the theory of priming the pump to revive the economy, but we’re basically out of primer. It’s much like trying to lift yourself when you’re standing in the bucket.
As one meme recently showed Prime Minister Trudeau saying, “We took on debt so Canadians wouldn’t have to.” A man holding my credit card is telling me he is using it so I don’t have to. It’s time to put a stop payment on that card.