British Stimulus Suggestions for PM

December 3rd, 2008

The Coalition of the Treasonous is supposedly upset about a lack of fiscal stimulus in the recent federal update. Other countries, they proclaim, are jumping off the Brooklyn bridge providing stimulus, so we have to too. Here’s a suggestion for PM Harper: do what the Brits are doing. Lower the GST a couple of points:

BRITAIN’S contribution to a global effort to add a shot of fiscal adrenaline to ailing industrial economies was delivered by Alistair Darling, the chancellor of the exchequer (finance minister), on Monday November 24th. He produced an emergency winter budget, which had been preceded by a deluge of leaks, to the House of Commons…

The scale of the giveaway certainly sounded impressive. The centrepiece of the fiscal package was a big reduction in the main rate of value-added tax (VAT), which is charged on most goods and services, from 17.5% to 15%.

For those who don’t know, the British VAT is the equivalent to our GST.

Oh wait, did that two years ago. Maybe that’s why Canada’s “GDP rose an annualized 1.3% in the third quarter.” Because the stimulus is in the system.

Since Britain is copying Canada’s success on the lower consumption tax, maybe someone at CTV can send Craig Oliver a memo: Reducing taxes does put money in peoples pockets.

Don’t believe me, ask the British Labour Party.

Coalition of the Treasonous, Economic Fundamentalism, Silly Politicians

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