Services/Departments Research "Tax Facts" The Small Value of a Big Tax CutTAX 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."
