Monday, December 01, 2008

Andrew Coyne whiffs it again


Fife also reported that the coalition government would introduce a $30-billion economic stimulus package and roll back $50 billion in planned corporate tax cuts.

Now, I never did have much of a head for figgerin’, but … lessee… carry the three, cipher the one … danged if that don’t come out to negative 20!

IN OTHER WORDS: They’re going to raise taxes into a recession. That’s why we’re going through all this: so they can raise taxes into a recession.

Cancelling a "planned corporate tax cut" does not equal raising taxes, you blockhead. Coyne knows this, because he's the first to call BS when people use similar rhetorical tactics, like saying that not increasing spending in line with inflation is equal to a spending cut.

But of course, in this case the facts favour his political opponents, so the facts need to DIE.

And even if you think tax cuts are exactly what's needed right now, corporate tax cuts are among the least useful forms of stimulus around. If the economic factors in Canada are at all similar to those in the US, this guide [PDF] is a useful tool: for every dollar lost in corporate tax cuts, you get 30 cents in stimulus. Meanwhile, for every dollar lost in a payroll tax holiday, you get almost $1.30 in stimulus. Unless of course you don't trust those communists at... Moody's. Simply put, corporate tax cuts are useless as stimulus, and cancelling future hypothetical corporate tax cuts is not the same thing as raising taxes.


celestialspeedster said...

Andrew Coyne is a generous individual who singlehandedly increases viewership of the CBC by sharing his exciting, partisan views on The National. Because the CBC needs to become more like Fox News.

Mike said...

For the man that once was honest enough to chastise the Cons for the spending Like Paul Martin beholden to the NDP ways, I find it kind of sad that:

a) Believes anything that spills out of Bob Fife's mouth.

b) Is willing to compromise his principles when we are sorely lacking in principles.