Thursday, March 20, 2008

Harper tireless fighter for corporate profits

Flaherty and Harper seem to have it in for McGuinty. Of course the tax cut mantra is standard Conservative rhetoric. In this instance Harper does not even try to disguise whose interests he intends to further. He does not mention personal tax cuts just corporate cuts. Of course he does not mention either how Ontario is to fund schools hospitals and infrastructure by decreasing tax revenues. The more the entitlements of people to education, health care, etc. are cut the less drag on the rich who can afford to pay all those costs personally.
What we need is a trickle up theory. Money distributed from corporations to the less well off stimulates the economy because the less well off will spend the money stimulating consumption and thus increasing production. The corporations that produce the goods thus will increase their profits!

Harper preaches cuts to taxes for Ontario
TheStar.com - Canada - Harper preaches cuts to taxes for Ontario

March 20, 2008
Richard Brennan
in ottawa
Robert Benzie
in toronto

Ontario's economy can thrive again if it lets Ottawa lead the way to the promised land of tax cuts, Prime Minister Stephen Harper said yesterday.

Speaking in London, Ont., Harper said Ontario can't be allowed to lag behind the rest of the country, but rather must remain the country's economic powerhouse.

More measured in his criticism of Ontario taxes than Finance Minister Jim Flaherty has been, Harper still made the point that Canada's most populous province has to be tax competitive.

"I've got to say that Ontario is still the engine, still the heart of the Canadian economy and it is in our interest that Ontario be a good place to invest," Harper told a news conference. "And we want to work with the government of Ontario to get the policies right, to get the kind of policies that we need right across the country to have success, and there is no reason that the Ontario economy can't be as strong as any other part of this country," he said.

Among his many attacks, Flaherty has warned off potential investors from Ontario, accusing the province of having the highest taxes in the country, if not the developed world, something provincial leaders have vehemently denied.

Premier Dalton McGuinty mocked suggestions that cutting taxes is the only way to aid the economy.

"I'm always open to advice from any quarter. I just don't think it's helpful to panic," McGuinty told reporters, suggesting Harper and Flaherty were jittery about the province's prospects.

"The federal government has a different view from ours. I respect their view, but I strongly disagree with it," he said.

"They believe that the single most important thing that we could and should do at this point in our history is to further cut corporate income taxes. They're asking that we reduce taxation levels on profitable corporations. We've got a different approach."

McGuinty said Ottawa is taking its cues from the previous Ontario Progressive Conservative government that closed hospitals, fired nurses and made cuts to education.

He rejected the attacks on him directed from Ottawa, including claims he is weakening the fabric of Confederation.

"I'm a proud Ontarian, but I always see myself as a proud Canadian first," the premier said.

The Conservatives have cut the GST by two percentage points since coming to power, and have cut corporate and personal taxes.

"Our government is taking across the country the actions we believe are necessary to sustain the strength of the Canadian economy, not just during this period of uncertainty but into the future," Harper said.

With files from The Canadian Press

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