Path: utzoo!utgpu!watmath!isishq!f71.n221.z1.FIDONET.ORG!Steve.Kannon
From: Steve.Kannon@f71.n221.z1.FIDONET.ORG (Steve Kannon)
Newsgroups: can.general
Subject: Re: Tax Revolt Now!!
Message-ID: <2713.24E6443D@isishq.FIDONET.ORG>
Date: 13 Aug 89 11:19:30 GMT
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 HS> EID:7383 320d130d 
 HS> UFGATE newsin 1.27 
 HS>From: henry@utzoo.uucp (Henry Spencer) 
 HS>Date: 13 Aug 89 00:04:59 GMT 
 HS>Organization: U of Toronto Zoology 
 HS>Message-ID: <1989Aug13.000459.27775@utzoo.uucp> 
 HS>Newsgroups: can.general 
 HS> 
 HS>In article <28307@watmath.waterloo.edu> rwwetmore@grand.waterloo.edu 
 HS>(Ross Wetmore) writes: 
 HS>>... Under a regime in which the people have 
 HS>>no say in their government, it might be justifiable to blame 
 HS>government 
 HS>>greed for excessive taxation. But in Canada, government policy 
 HS>is a reflection 
 HS>>of the will of the people, at least as portrayed by the pollsters, 
 HS>pressure 
 HS>>groups and media which are trying to mould it into their own 
 HS>shape. 
 HS> 
 HS>That's a big "at least".  The fact is, the government does not 
 HS>hesitate to 
 HS>ignore the will of the people on issues like capital punishment, 
 HS>where 
 HS>it considers the will of the people misguided. 
 
Ignoring the "will" of the people is precisely what every government 
does. Because the general public is a diverse group with no possibility 
of cohesive action, the political agenda is set by high-powered lobby 
groups, most notably the big business community. 
 
The wealthy and powerful elites always get their way; they are well 
organized and have the funds and the clout necessary to get chummy with 
government types and to scare government types when such tactics are 
called for.  
 
If the government was really interested in tackling the deficit, it 
could easily do so by adjusting its spending priorities slightly (ie. 
without cutting back basic social services) and by taxing business and 
the rich to the same extent they tax the average Canadian. In fact, if 
the government collected even those taxes which have been "deferred" 
(read "no intention of ever paying") by business, the public coffers 
would be richer by some $50 billion (yes BILLION). 
 
Of course, the feds have no intention of doing things logically. Their 
aim is to make life easier for the very wealthy (whose taxes have 
actually decreased dramatically since BM the PM came to Ottawa) and for 
large corporations. The powerful elite have said "we don't want to pay 
taxes and we don't want to pay for social services which make us 
uncompetitive at the business level" (can you say "harmonization" in 
preparation for Free Trade). To this Brian and Michael, who both belong 
to this class of people, have told their friends, "don't worry, you 
won't have to pay a cent; the other slobs [read you and me] will pay to 
keep things the way we want them to be." 
 
For example, during their first term in office, the Tories' tax "reform" 
saw the following increases (figures are approx from memory): 
 
Income tax: up 180% (on low income earners) 
Fed sales tax: up 140% 
Corporate tax: up 4.5% 
   
As you can see, the government was quick to jump all over the lower 
ranks, but spared the "poor, hard-pressed" business community, with most 
of the breaks going to the wealthiest companies (eg. a $500 million tax 
concession to the Reichmanns -- one of the world's wealthiest families 
-- to help them buy Gulf in 1985). 
 
With the proposed GST, the Tories are hoping to use their favorite tax 
weapon: sales tax, which hits the low and middle class the hardest.  
While they publicly decry the current manufacturers' sales tax as 
harmful to business, they didn't hesitate to raise it dramatically. 
 
Sales taxes are, of course, the most regressive forms of taxes. Using 
the word "reform" to describe what Wilson is doing would make Orwell 
spin in his grave. The inane prattling about job creation and fairness 
in the system would be laughable if it wasn't coming from a majority 
government with a history of screwing over the bulk of its citizens. As 
things stand, the situation is simply scary. 
 
From a purely economic standpoint, the GST is stupid, as even the most 
passing knowledge of economics will reveal.  Wilson's plans, however, 
have little to do with economics and much to do with power politics; 
fairness, equity and public interest have nothing to do with his 
measures, he only wishes us to believe such is the case. 
 
The deficit must be cut, that much is certain. However, the way to 
achieve that is to cut extraneous government services, and, more 
importantly, to eliminate holes in the tax system that allow the 
powerful to pay little or no taxes at the rest of the population's 
expense. If the tax system ever became truly equitable -- where 
everybody and every corporation was subject to the same rules of the 
game without preference -- then the budget would be balanced. 
 
A vibrant economy under real tax reform would provide greater 
employment, lower inflation, and less government bureaucracy. The 
hard-pressed middle class would actually see a reduction in income tax 
and a marked increase in disposable income (which in turn keeps the 
economy growing and the tax revenues rolling in). 
 
Instead, we get Mike Wilson espousing the glories of doing just the 
opposite. He hopes to invoke a regressive system which even his business 
allies say will slow down an already slowing economy, boost inflation, 
increase unemployment rates, create a nightmare of red tape, and put 
4,000 more paper pushers on the government payroll. 
 
Yes, it is revolting.  These proposed measures are not what the people 
of Canada want, nor what they voted for.  
 
   -- Steve 
 
   
 
 
  
 
 


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