Tax Cuts: Like giving money to a two year old

Recently I entered the tax cut debate.

“Are they the best way to stimulate the depressed economy? Is there a better option?”

I came out against tax cuts for a few reasons.


["Tax cuts and chili - lots in common"]

E.g., “As far as tax cuts are concerned, you can’t force consumers to spend this extra money in their pockets,” say the Conference Board of Canada.

A reader, Lost Motorcyclist, said the following (in part):

“I agree with you. Stimulus money tends to be spent on things we need such as jobs, road repair, schools, other infrastructure. Tax cuts are spent on junk and toys mostly, like flashy SUV's, monster homes... Sadly, people are not very wise with their spending these days. Putting more money in their (our) pockets is like giving money to a 2 year old...”

I responded with this reply:

“I feel tax cuts are over-rated in a country in which debt is growing nationally, provincially and individually. "Like giving money to a 2 year old" is right!”


With national, provincial and individual debt at the highest levels ever, with many people and governments dramatically against raising taxes of any kind, I’d say we’re in a giant pickle jar of our own making.

Hey! Our debts might respond positively to guaranteed revenue streams.

I say, dial up personal and corporate taxes by 1/4 of a per cent for 10 years and direct revenues toward the federal debt.

Even small progress against massive and growing debt might encourage the entire country.

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I know I’d be happier and that’s important, right?

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