The Small Value of a Big Tax Cut


The Small Value of a Big Tax Cut

TAX FACT:
Canada needs a wage increase, not a tax cut. Tax cuts will deliver only a small improvement in disposable incomes for most Canadians - at the cost of continuing crisis in public services. Higher wages do far more for our spending power, without undermining health care and other services.




Even a huge cut in taxes - like the 30% cuts promised by the Liberals - will have only a small, one-time impact on the disposable income of most Canadians. The tax cut is phased on over 5 years, and can only happen once. It's like getting an annual wage increase of 1% or less, just for a few years: not exactly a "rich" contract! The way to really boost our incomes is to negotiate wage increases, not to cut our taxes.

Source: CAW Research from Dept. of Finance, "Economic Statement and Budget Update."


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