Saturday, January 03, 2009

Two Words Flaherty Apparently Doesn't Understand

Cash Flow.

So, we have a Conservative government on the threshold of pouring billions into the economy, and because of increased unemployment, government revenues will already be down, and this dimwit is thinking about tax cuts???.

Finance Minister Jim Flaherty said Friday he's reviewing options for putting more money in people's pockets through tax cuts as part of a multi-billion dollar stimulus package that will include infrastructure spending and help for laid-off workers.

The comments come as the finance minister prepares for a second meeting with his freshly minted council of economic advisers next week and amid fresh evidence that Canadian consumers are growing more pessimistic.

Do I really need to point out that the government needs the cash flow to pay out the billions in spending it's planning? To use a simple analogy, you don't downsize your job from a professional income and take out a bigger mortgage on your house at the same time - it isn't exactly great financial planning.

But, then, coming from a party which doesn't understand accountability in government, why should they have even an inkling what accounting and budgets are all about.


Anonymous said...

Looks like more Con$ ideology--- reduce taxes so that the money does more good in the hands of the indiviual taxpayer. Garbage of course but that's all these guys know.


Anonymous said...

Tax cuts create jobs. This is precisely what the economy needs at this time to get consumers spending. Same with the provincial government, although no one can say they foresaw the economic crisis when they abolished health care premiums.

MgS said...

Yes and lower prices sell more product - unfortunately, at a certain point things become unsustainable.

Further, Flaherty is talking about income tax cuts, which do not correlate directly with job creation - especially not when payroll taxes are increasing, thereby increasing the cost to the employers per employee.