Quote:
Originally Posted by Mean Mr. Mustard
So what is the option that you propose - not put any money into capital projects because there is a fear about going into debt? Decrease wages amongst the public sector, ignoring the high cost of living in Alberta which is secondary to the oil boom? Take money out of the Heritage savings fund?
All of the projects you listed are required projects, hospitals, roads and public transit... people complain about wait times but don't want to fund a hospital, say seniors should be bathed more often but want to cut staffing/wages, promote the oilsands and don't want to build the road, better public transit... with a low pricetag of course.
In my opinion going into debt while the interest rates are low makes the most sense, that in combination with increasing tax rates and introducing a PST/HST system. Alberta was able to pay off the debt because of resources money which we have been living off of for the past 15 years enjoying a low tax rate.
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What I think those of us who are against raising taxes are proposing, is to first cut operational spending, then and only then should tax increases be looked at. We shouldn't be looking at a deficit and automatically assuming that revenue is the problem. When times are tough this should be the order of things:
1. cut expenses
2. raise revenues
3. raise debt
The order shouldn't be
1. raise debt
2. raise revenues
3. cut expenses