Quote:
Originally Posted by Mathgod
The 3rd option creates inflation; I don't think anyone disagrees there. However, the question is are we ok with dealing with some increase in the level of inflation? If not, then we have to look at the other two options. #1 is, in my opinion, incredibly callous and barbaric, so that leaves #2. The question then is, who should be looked upon to pay more? The middle class who are already squeezed, or the wealthy who can afford to pay more?
That's what the crux of the disagreement here is. Whose "fault" is it that the government is running record deficits, and what if anything should be done about it? To me, the answer is clear.
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The answer is actually really clear. The "rich" actually want and demand basically zero levels of public service aside from existing in a stable first world society. They will fly to the US for health care, use the 407, private schools, hire a nanny or two so they don't use child care and so forth, yet they are charged the most. On the other hand, the people that use the system the most, pay the least. If you're asking whose fault it is for the government running record deficits, it's actually the middle and lower class demanding services that their taxes (if they pay any) don't cover.
If you look at a Scandinavian country, they have a VAT of 20-25% in order to offer the levels of service we want. Consider that the tax rates on "the rich" in those countries is actually quite similar to Canada. The difference is the 20% in GST (or whatever lower # that makes it equivalent to a VAT) that we don't charge here.
What's the solution? I'm not sure, but your crusade against the rich may be misplaced.