When Prime Minister Stephen Harper and the Conservative government decided to cut tax rates, they chose a proven route that provides incentives to businesses and individuals to work hard and improve the futures of their families and companies.
As a result, government revenues have increased, because people have more money, and as they spend, they pay sales tax, while companies operating in a business-friendly environment generate more jobs and profits, and pay taxes through payroll and profits.
The results of this chosen path are clear.
In a global economy that remains fragile and is being dragged down by forces beyond our borders such as global oil prices, the European debt crisis, and China’s economic slowdown, the Conservatives’ low-tax plan has helped create over 1.3 million net new jobs, of which over 90% are full-time and nearly two-thirds are in high wage industries.
Canada has the best job creation record in the G7, almost 20% more jobs than our closest G7 competitor, and is leading the G7 in real GDP growth since the 2008 recession, and has the lowest net debt to GDP ratio in the G7.
Our government is putting money back in the pockets of every single Canadian family with children by increasing and expanding the Universal Child Care Benefit to nearly $2,000 per year for every child under 6, and $720 per year for every child between 6 and 17.
Our Conservative government’s low-tax plan has helped increase after-tax disposable income across all income levels since coming to power, with low and middle-income Canadians receiving a significant share of tax relief. After-tax disposable income has increased by 10 per cent across all income levels since 2006.
But there’s one reality I think we as Canadians sometimes forget.
The dollars governments of all levels spend isn’t “their” money. It’s our money.
It’s money they’ve taken from individuals and businesses in the form of taxes with the promise of it being used to provide public services.
It’s money that’s been created from the extraction and production of the natural resources that belong to all of us as Canadians.
Higher taxes will mean less disposable income for individuals and businesses, which have proven to choke any economy. While higher taxes might mean higher government revenues in the short term, it will inevitably result in less over the long-term, as people will have lower take-home pay and spend less. Historically, businesses decide not to take the risk of making investments when incentives are lower in higher-tax regimes.
We cannot afford to take unnecessary risks with the inexperienced leadership of Justin Trudeau, who has said he will dramatically hike payroll taxes on middle class Canadians, a tax hike which would cost over $1,000 for someone earning $60,000 per year. NDP leader Thomas Mulcair is offering the same high tax, high debt policies that created the type of chaos we see in Greece today.
Now, more than ever, we must continue with our low tax plan.