Quote:
Originally Posted by Demzy84
My one issue with the budget they proposed was that it was just assumed that the business tax increase would bring in an extra 38% of tax revenue which then pretty much paid for all the tax cuts/credits they wanted to issue.
You increase the business tax, you are going to see a decrease in tax revenue (whether it be tax avoidance measures, moving company out of province etc…)
So to make up for the shortfall in tax revenue, I think it’s pretty easy to guess what project would hit the chopping block.
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No, that math/logic is really wrong. You still see an increase in revenue dollars(unless you raise it by a large enough amount). The criticism was they didn't account for the decrease in revenue from what you mention, which is fair enough, but the tax increase would still, overall, bring in a lot more than it loses.
Meanwhile, the UCP proposed many similar funding measures, but provided no avenue to pay for them. So one party had a fiscal plan(NDP), the other made a bunch of promises they will not fulfill.