Canadian Personal Finance Blog

Archive for December 14th, 2006

Yup, remember I said that was where I was going to buy my gas this year as much as possible? Well I actually accumulated another $50.00 during the year, but sitting in my car right now is more than $20.00 worth of Canadian Tire Money!!! Whoo Hoo! My wife will be getting 1 new wiper blade as part of her Christmas present (but don’t tell her it’s supposed to be a surprise!). Yes, it’s a slow news day, and me reveling in my own windfall winnings is a bit petty, but ’tis the season to be JOLLY! HO! HO! HO!

How many points have you accumulated this year?

-C8j

I don’t know what I think about that one. The IMF findings are found on their web site here

6. The government’s intention to lower the tax burden is appropriate. The modest fiscal space after planned debt reduction would most usefully be used for growth enhancing cuts in personal and (in particular) corporate marginal effective tax rates. We welcome the government’s commitment to using interest savings from debt reduction to lower personal income taxes and its objective of achieving the lowest marginal effective tax rate on new investment in the G-7. Marginal income tax rates are high by international standards, suggesting that reductions in this area would provide larger efficiency gains than further cuts to the Goods and Services Tax (GST). Indeed, with population aging implying a steady lowering in the ratio of workers to the overall population, there is a case for increasing the role of consumption taxes in the overall revenue effort.

So in effect they think lowering taxes is a good thing and the government is going in the right direction, however, they are lower the wrong taxes, and in fact should be lowering income taxes and corporate taxes, not the GST. Interesting, I don’t know if I agree or disagree with this, but it is interesting to read, especially given last week’s statements that we need higher taxes in Canada.

I think I’d like lower taxes across the board, and increasing a consumption tax given the population of Canada is aging, may not be fair either (in my opinion). It may increase government income however, which is the point the IMF is making (I think). –C8j

PS: We are mentioned in the Carnival of Thoughtful Consideration #1 this week!