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I got into an argument with an individual yesterday regarding the proposed federal mini-budget. The fight wasn't so much over the budget, but over an article which appeared in the Toronto Star (I regretfully do not have a link) which criticized the government for not addressing poverty. This individual claimed that it was precisely our high taxes and high national debt which were contributing to poverty, and thus, that the 1% decrease in the gst is in fact an anti poverty measure. I strongly disagree.

From my point of view high taxes and the national debt load have little, if anything to do with individuals living in poverty in our country.

Our high poverty (and especially troubling Aboriginal poverty rate (individuals who do not even PAY one of our taxes) are due to in affordable housing, insufficient minimum wage and social assistance rates (which I realize are a provincial jurisdiction)

This tax cut and tax break are going to do little to combat poverty. Who do you think is going ot benefit most from this gst cut? the guy who buys his couch from the Salvation Army or the guy who buys a yacht? Tax cuts and tax credits mean very little for those without money.

We've got record surpluses, yet there is nothing in the proposed budget which will substantially help those with the greatest need.

In opposition to the notion that higher taxes are bankrupting our citizens, I point to a comparison between highly-taxed (Nordic, for example) countries, compared to our low taxed country. Countries that have higher tax regimes happen to have stronger performances. A study by the Canadian Centre for Policy Alternatives found that countries with higher taxes, such as Finland, Sweden, Norway (ect) have significantly lower rates of poverty across almost all social groups. Not only that, income is distributed significantly more equally. (Brooks, Hwong (2006) The Social Benefits and Economic Costs of Taxation. Canadian Centre for Policy Alternatives)

So, I ask you this question: what are your opinions on the mini-budget? What would you have liked to have seen the government do with our record surpluses? Are you going to buy a yacht? You'll save yourself a shitload.