The High Cost of Corporate Tax Cuts

The Harper government's plans to reduce the deficit with savings from Old Age Security, are absolute nonsense.  Their argument is that it will be more beneficial for younger workers.  Just how is forcing Canadians to work two years longer, going to help those entering the workforce?

They will have to wait two more years for a job to open up.

However, this decision does provide an opportunity for Canadians to sum up this government's performance and goals, and determine who is really benefiting.

In a letter to the Ottawa Citizen, David Hobson says:  Harper government takes from the poor

If I understand the economics of the Harper government, it is this: first, lower taxes for the wealthy corporations; second, maintain MP's pension plans. Harper, I understand, at 55 will receive a pension of $250,000 per year from public funds. By the time he is 67 he will have received $3,000,000.

Now for the rest of us: first, payroll taxes will be up; second, Old Age Security and Guaranteed Income Supplement eligibility age will be raised from 65 to 67. This mostly affects low-income seniors and those in poor health.  I guess it is a matter of priorities. Give to the rich and take from the poor. Why didn't we hear of this plan during the election?

Why didn't we hear of this plan before the election? I know why. Because Harper WOULD NEVER have been re-elected. In fact back in the day, when his Reform Party was being created, they lost a lot of support from seniors when it was discovered that they wanted to gut OAS. He learned from past mistakes that honesty is the worst policy.

Dobson mentions the payroll tax increase, which not only affects workers, but small business.

Employers and employees will be taking a hit in the pocketbook due to increases to employment insurance and Canada Pension Plan deductions starting Jan. 1, says a new report by the Canadian Taxpayers Federation.  Both groups would pay a total of $306 extra in payroll taxes in 2012.

The EI rate will rise to 1.83 per cent from 1.78 per cent for employees, and for employers, the employers, the rate will increase to 2.56 per cent from 2.46 per cent which, along with corresponding increases in maximum EI and CPP amounts, will bring their contributions up by $164 per employee.  This amount could be substantial to a struggling small business.  They will either have to raise their prices or reduce their staff to cover the extra costs.

Large corporations are fine.  When Harper took power the corporate tax rate was 21%.  It is now 15%.  By comparison, the U.S. corporate tax rate is 35%.

And where are all these great jobs promised with these gifts to the wealthy?  According to the Canadian Labour Congress, corporations are hoarding their cash,  paying out larger dividends to shareholders and beefing up executive salaries.

Corporations that do hire are places like McDonalds and Walmart.  Low pay, mostly part-time, and with few if any benefits. 

And this government's support of union busting corporations, like Caterpillar, is going to further reduce the middle class.

I had a conversation with a conservative friend of mine who operates a thriving restaurant.  She supported Harper's solidarity with Caterpillar saying that unions hurt her ability to find good staff.  Clearly she was reading Tim Hudak's balderdash.

So I asked her what her business would look like with no middle class.  If everyone is making minimum wage, or only slightly above, how many could afford the luxury of eating out?  Was her customer base corporate executives or teachers, civil servants, factory workers?  She went a little red faced and I could tell that the message had hit home.

She knows who frequents her establishment and I doubt she'd ever even met a corporate executive.

The Washington Post's Ezra Klein, created a little chart of what programs and government policies best stimulated the economy.  The GOP fought for an extension of George Bush's tax cuts for the wealthy, while gutting social services.  This is what the chart looked like.

Food stamps, something the Republicans are hoping to do away with, were the big winner.  What will the business of grocery stores look like, without them?  Those billions the GOP want to cut, mean billions in lost sales.  Note that corporate tax cuts provided a net gain of zero.

Low income Canadians spend their benefits locally and our middle class props up most small businesses.  Corporations hoard and corporate execs hide their money in the Caman Islands.  So who should we support?

Toys For the Boys

Liberal MP Judy Sgro is right when she says  “The government has caviar tastes when it comes to jets and jails, but a baloney budget when it comes to seniors.”  And NDP finance critic Peter Julian, reminds us of some of the costs of Harper's boy toys and "build it they will come" prisons.

“A single F-35 costs $450 million.  That would pay Old Age Security benefits for 70,000 Canadian seniors. Its prison plan costs $19 billion. That would pay annual benefits for 2.9 million Canadians seniors...

And Peter Mckay is mulling over the purchase of nuclear subs, that would cost billions to purchase and maintain.

This government's priority is not Canadians.  Jets for Lockheed Martin and pipelines for the U.S., Korea, China and Norway.  It's time we start fighting back.

Someone reminded me of a post I wrote in 2010, about a fiesty senior citizen named Solange Denis.  She took on the Mulroney government when they put corporations above seniors.  Her efforts caused them to back down.  Do we have a Solange Denis out there today?

Or will my premonition come true, that one small voice would now be "lost in the deafening silence of 34 million"?  We need to find our voice.

Is Rick Santorum Getting Fashion Tips From Stephen Harper?

Social Conservative candidate Rick Santorum, surprised everyone by coming close to beating Mitt Romney in Iowa, finishing just 8 votes behind.  Up to now he has flown under the radar as "surges" went from Rick Perry to Herman Cain to finally Newt Gingrich.

The media is now paying attention and one thing that they are paying attention to is Santorum's choice of costume, or should I say uniform.

The dreaded sweater vest.  Apparently it signifies the Social Conservative dream of life before the civil-rights movement. Who knew?  I thought it just meant they were dorks.

Not all Republicans are thrilled with Romney's victory, feeling that he is being rammed down their throats, because as a moderate, he may be the best choice to beat Obama.  Don't they know that the true conservative would rather lose the election than sacrifice their conservative "values"?

The Religious Right is throwing all of their weight behind the only "conservative" left standing, meaning that the very strange Santorum could very well win this thing.

I doubt he'd have a chance in hell of becoming president, but who knows?  Stranger things have happened.  Just look who we have as prime minister.

Egads.

So Much For Belt Tightening. Harper Just Needs Bigger Pants

With promises of major cutbacks for everyone else, Stephen Harper is again rubbing our noses in the fact that he controls us all, by spreading our money lavishly around his MPs.

39 cabinet ministers, at a minimum annual cost of $9 million.

But don't forget that he usually also assigns numerous Parliamentary secretaries from among them, in an attempt to bring as many as possible into the executive, ensuring that few are left to actually question the executive.

Not that any of them ever question anything the exalted one does.

They wouldn't dare.

James Moore's Double Standard

Heritage Minister James Moore is angry. Apparently, a Canadian punk rock group, Living With Lions, who received a government grant, trashed Christianity and the Bible on their latest album.

Ezra Levant reached into his bag of prose and called them "a bunch of losers".

James Moore issued a statement calling the CD “offensive” and “simply wrong” and expressed his “profound disappointment” with the grant.

But where was his outrage last week, when we learned that taxpayers helped to sponsor the Islamophobic Geert Wilders, as part of the Tulip Festival?

Moore could have stopped his appearance, but didn't. The Right refer to Wilder's hate filled diatribes as "freedom of speech". Why then is Living With Lions not given the same consideration?

They are an anti-establishment punk band, who would appeal to a very small demographic, though the headlines will probably help them sell more albums.

However, there is a troubling double standard taking place in Canada today.

Geert Wilders fine, George Galloway out. Hate speech at a Tulip festival fine, young people expressing themselves silenced.

Welcome to Harperland.

Is the Tea Party Becoming Tepid and What Will it Mean for Harper?

South Carolina Republican Governor Nikki Haley, was brought to power with the help of the Tea Party. As reward, she proposed a Tea Party Coalition in her state, using grassroots activism, to promote their agenda.

The crowning glory for this coalition, would be a rally, featuring Donald Trump. But when Trump backed out of the presidential race, he also backed away from the Tea Party, resulting in perhaps the poorest showing of the AstroTurf group for some time.

Philip Stanley came to Thursday’s rally from Asheville, N.C., in hopes of seeing Trump but said he was pleased to learn Haley would headline the event instead. Stanley said he respected Trump for directly questioning President Barack Obama about his birth certificate without fear of being labeled with “the R word” for racist .... “I never thought he was serious,” Stanley said of Trump. “He’s a promoter. Then, I heard Nikki Haley was here. That’s almost as good.”

But apparently not "almost as good" for most people, as the event was attended by only a handful of the faithful.

Are the Americans now backing away from the crazies? Obama's approval rating is at 60% and the birther movement, has been aborted, now that he produced the document they all claimed would prove he wasn't American born.

What will this mean for our crazy people? The ones who have contributed so much to the career of Stephen Harper, with the promise that they would be listened to.

He held them off when he was in a minority, but with a majority, they will not sit quiet, especially since many of them are in his caucus.

They'll applaud his destruction of the welfare state, that is until they realize that they are also victims, but they will also demand the right to bear arms (something Harper himself wrote into Reform Party policy), the abandonment of gay rights, women's rights and the rights of minorities, and the end of a woman's right to choose.

However, if Harper gives them all of these things, will they go away quietly, or emboldened, simply become more demanding?

Have some tea. One lump or two?