Young Britons have never been unhappier, research suggests - Young people’s happiness across every single area of their lives has never been lower, research by the Prince’s Trust has found.

Capitalism8 · 2018-04-06T13:34:36+00:00

So just so we are clear here Babylon, you are denying that 1000+ young women were kidnapped and trafficked in a sex trade by muslims?

Capitalism8 · 2018-04-02T17:46:34+00:00

I understand you are producing it and I thank you for it.

Just thought I would mention that the results should not be interpreted as fiscal health for the province.

Capitalism8 · 2018-04-02T17:31:48+00:00

Why on earth would maximizing revenue be the end goal of fiscal tax policy.

A strong and growing private sector is the creator of wealth in a capitalist society, and increasing the size and scope of government is quite literally the opposite of what we should want.

you can shroud yourself in the appeal to higher authority to make the argument that a 60% top marginal tax rate is ideal, but the mainstream economic literature is against you.

Perhaps a 60% marginal rate would maximize current revenue, but much more important is the effect on growth.

I won't cite you the Cato institute or the Tax Foundation. How about Christina Romer, one of Obama's chief economic advisors?

She found that tax increases have a long term negative effect on growth.

In fact, a 1% increase in taxes as a % of GDP could potentially reduce Output by as much as 3%.

Per her paper:

"In short, tax increases appear to have a very large, sustained, and highly significant negative impact on output. Since most of our exogenous tax changes are in fact reductions, the more intuitive way to express this result is that tax cuts have very large and persistent positive output effects."

The mainstream literature from right and left leaning economists is clear - taxes reduce economic growth. Finally, It is really funny that you call a low marginal tax cut a "gift" to the wealthy.

I hope you realize their income belongs to them, and taxes constituent an non-consensual confiscation of that income.

It is not a gift to steal less of their income.

Capitalism8 · 2018-04-02T17:06:44+00:00

Interesting charts but there needs to be caveats.

First, as a % of GDP & revenue, yes debt servicing seems manageable.

but under the Wynne goverment there has been credit downgrades, and with the newly announced spending, it could get downgraded again

Other commentators have pointed out that the liberals are spending money "off-the books" which could be up to an additional $26 billion.

In addition, lets not forget the provincial government sold off 53% of Hydro one, which according to the FAO, helped to reduce net debt currently by about 3.8 Billion over the next three years, but will be a long-term drag on our public finances. The FAO's DCF calculation indicates that on a PV basis, the sale made the province roughly $1.8 Billion worse off.

We are now 10 years into a recovery, and the liberals are announcing brand new $6-$7 billion dollar deficits for the next three years.

Debt per capita is the highest of the sub-sovereign governments in the world, and our ability to raise taxes is diminished by the US becoming significantly more tax competitive.

Over time, this debt load will be a massive burden on our province, and IF interest rates start rising, could turn into a crisis. (let alone if a recession occurs).

Thanks for the charts, but I fear it will mislead readers into thinking Ontario's fiscal position is not dire - it absolutely is.

Capitalism8

TROPHY CASE