Regressive Tory Tax Plan

In order to pay for the oh so generous 1% GST cut the Tory's plan to renege on the current personal tax cuts that were introduced by the Liberals. So what do economists have to say about this?

Tory plan to roll back low-income tax cuts worries some business

The price tags Costing Liberal, Tory and NDP promises

What do economists have to say about the veracity of Harper's financial plan

The Conservative Party's fiscal plan, a key part of its formal election platform released yesterday, counts heavily on the rollback of a tax break implemented by the Liberals to finance its spending promises.

The Tories confirmed that, if elected, they will reverse a cut of one percentage point in the tax rate for the lowest income tax bracket, and roll back an increase in the basic personal exemption to make the books balance under their spending plan.

But nowhere in the Conservative's 46-page election platform is that crucial policy spelled out, said Dale Orr, chief economist at consulting firm Global Insight (Canada).

"One would have thought they'd be a little more forthcoming," he said. "They certainly are not giving a high profile to something that is very important to a lot of Canadians."

Reversing the two tax changes -- which were part of the Liberals' November economic update -- would generate about $4.5-billion in 2006.

That money would be crucial to implement the plans in the Tory platform, Mr. Orr said. "It finances a lot of things."

In their platform, the Tories say their policies would generate about $45-billion in tax relief over five years, the biggest chunk of which would stem from reducing the goods and services tax.

Finn Poschmann, associate director of research at the C.D. Howe Institute, said restoring the higher income tax rates would carry "some political cost with it."

He noted, however, that the income tax cuts put in place through the pre-election economic update, some of which were retroactive to the start of 2005, are not actually law yet. Still, he said, it would be unpalatable for the Conservatives to roll back the retroactive portion, and it would be tough enough to kill them going forward.

And what does the Business Press have to say about the Harper Budget Platform? Horray more corporate tax cuts. Notice that the Conservatives will keep some of the Liberal promises.

Canada's Harper Pledges Tax Cuts in C$90 Bln Platform (Update1)

The party will honor the current Liberal Party government plan to cut the corporate income tax rate by 2 percentage points to 19 percent by 2010, according to the party's platform released today. Individuals won't pay capital gains taxes if proceeds from the sale of assets are reinvested within six months, Harper said at an event in Oakville, Ontario.

And the Conservatives seem to be, as usual, getting their economic marching orders from the Fraser Institute. Cut corporate taxes to boost productivity, says Fraser Institute

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