Conrad Black: Canada needs to compete — here's how we can win

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It has been established that the long-term consequences of Canada having higher tax rates in almost all tranches than in the United States are easily predictable and potentially very damaging to this country.

Clearly, no one now argues that the private sector creates more jobs with investment than the public sector and its so-called multiplier effect, consequential expansionary spending is higher in the private sector than in the public sector. Even so, it is necessary to mention that the problem is whether it is a better public policy to reduce taxes, stimulate economic growth and make all bets on the famous statement of President Ronald Reagan that “The only welfare system we have ever worked. a job”, or if, although it is inefficient, it is generating economic growth. Likewise, it has been said that the application of these economic lessons should be varied by increasing the inefficient varieties of spending on public welfare to alleviate the condition of people at a comparative disadvantage.

Several methods

It is considered that, in extreme terms, the pure capitalist model would reduce all taxes to the fiscal bones needed to pay for essential state functions, such as police and justice, national defense, education and basic services, and a safety net. comparatively scarce. While, at the other end of the policy spectrum, the democratic left wants high taxes and a massive reallocation of resources among the people led by the government.

It should be noted that there are several methods to reduce taxes on people and corporations with a high level of wealth to alleviate poverty in plans that taxpayers design and administer themselves, as they do with good faith charities. In this way, the tax rate would decrease as the level of poverty defined in the country decreased.

There is no doubt that the recent trend has been the reduction of taxes in the main economic countries. And there is currently an increasingly intense global competition for capital, talent, and business. In this way, countries are showing reductions and simplifications of taxes and deregulation.

Thus, the government’s tax proposals and the official opposition must be examined carefully before the country votes in October.

Source: Conrad Black | National Post