Tuesday, October 19, 2010

Are the Liberals more conservative than the Conservatives?

Probably not.

Yesterday the Liberals announced a plan to eliminate the deficit faster than the Conservatives.

The announcement got me thinking. . .
  • Maybe the Conservatives' drift to the left is finally going to bite them.
  • Is Ignatieff actually a brilliant strategist who helped force the Conservatives to the left and now stands ready to capture the fiscally responsible title?
The answer is likely no on both counts. Rather than cutting spending, the Liberal plan involves raising tax revenue by cancelling planned corporate tax cuts designed to stimulate the economy. Brian Lee Crowley, of the Macdonald-Laurier Institute, an Ottawa think-tank, noted:
It’s an economic fact of life, that lowering corporate taxes creates jobs, and freezing those taxes, as the Liberals propose, would keep those jobs from being created.
More ridiculous their so called plan to eliminate the deficit is based on gaining $6 billion by cancelling the planned tax cuts, when the budget office estimates the cost of the tax cuts is only $4.5 billion. That's a huge problem if this is the cornerstone of their deficit reduction strategy.

The Conservatives can be assured, Canadians will see through the Liberal smoke and mirrors and continue to place their trust in the Conservatives for sound economic planning.


Anonymous said...

Under Chretien/Martin the Liberals had 8 straight years of NO DEFICIT and reduced the debt. Harper squandered this and is running the largest deficits in Canadian history. Even Flaherty came out the other day and revelaed that he either lied or misjudged the size of the deficit and it is now bigger and uglier than he originally announced. $55 BILLION!!! The "right" likes to say that they are better economic managers but the facts say otherwise. Harper cannot control spending and despite being an "economist" is incapable of balancing the books.

I can only assume that you think that record deficits are "sound economic planning". If other Conservatives think like you it is easy to see why we are in such horrible financial shape. You guys have no idea what you are talking about.

Anonymous said...

Why is it okay to Conservatives to run big deficits?

The reality is that you must increase tax revenues or cut spending, or some combination of both in order to balance the budget. You are against the Liberal approach but Flaherty has not announced how he is going to do it or why it takes 6 years to get there. It only took him run to get to the record deficit.

You seem to be advocating that $6 billion in tax cuts is good. That will make the deficit a new record of $61 Billion. Is it the Tory plan to keep running record deficits? Clearly, there must be some combination of tax raising and spending reduction.

You blog is so simplistic. You have no clue what you are talking about and are a reckless partisan. It is more important to you to bash liberals than to have sound policy. Then you put lipstick on the Tory finacial disaster by saying they are sound finacila managers. In what reality are you guys living in?

Anonymous said...

Tax cuts at the same time that we are running deficits meaqns that our children must pay our debts. I am not prepared to support that.

Tax cuts should only occur when the budget is balanced.

Patrick O'Neil said...

Anonymous 1

The $55 billion deficit was only slightly above forecast. Nobody lied.

Anonymous 2

This blog is not simplistic. The post may be. That's because I'm simply saying that despite the talk of deficit reduction. The Liberals are really just increasing taxes and spending. It is that simple.

Anonymous 3

Generally I agree, but stimulus money is something everyone agreed to a year ago, and these tax cuts were designed to stimulate the economy.

All especially #3

It's also worth noting that the Liberal claim is only to eliminate the deficit 1 year before the Conservatives.