I have some thoughts about this. Follow along if you like, friends.
First of all: it's abundantly clear to anyone without their ideological blinders on that the Liberals are a very long way from being "socialists". Socialists don't tend to put their faith in market-based solutions, for one thing (you know, the carbon tax). Anyways. Onward.
The budget is bad news for "some of 🇨🇦's most productive citizens" because it increases taxes on "capital gains accrued from investment assets like secondary residences." It only applies to gains > $250K. But hey, shed a tear for those who just sold their chalet or beach house.
Interestingly, the rest of the piece isn't really about the budget. It's just a recapitulation of the greatest anti-Trudeau hits, including the comparisons to his father and comments he made before ever becoming PM. But hey: paint-by-numbers can be a fun recreational activity!
He says "job creators" a few times, and how they're going to be so hard done by paying a tiny bit more in taxes. What he doesn't mention: small businesses will get three years of carbon tax rebates, and entrepreneurs get an increase in the lifetime capital gains exemption.
Rahim suggests "with the credit taps starting to close and high-income Canadians now in the government’s crosshair, it’s only a matter of time until Trudeau and company look to the pockets of everyday Canadians to feed their addiction." Hold on -- what?
Canada's planning on issuing $228 billion in debt this year. 10-year yields remain well below where they were last year, and internal forecasts have them averaging 3.3% out to the end of the decade. This is what "starting to close" looks like?
Raising taxes on Canadians would be politically suicidal. The feds know that. They also know that rates are going to start coming down later this year. I'm open to a conversation about where and how we cut spending. But folks like Rahim have to be more specific about it.
If they think the feds should cut, say, $40 billion out of the budget, they should say where and how. And no, "efficiencies" isn't going to cut it. The cuts will have to hurt, just like the ones in the 1990s did. Say where. Say how much. Then let's talk. Fair?
@maxfawcett tbh, I think the move here that would have been a winner would be the cap gains increases paired with income tax cuts across the board, balancing the collected taxes but providing relief for everyday workers. Libs could have cornered the Cons on both sides of the tax argument.
@maxfawcett How you know the @liberal_party is done. They are now asking for ideas as they don't have any. If you can't govern Canada within the bounds of a budget move on.
@maxfawcett I know where we can find 40B. 😌
@maxfawcett It may be politically suicidal but raising general taxes for all is responsible governance that meets the moment. Taxes are best instrument to fight inflation. Introduction of entitlement programs, housing programs, and defense spending means it's an all hands on deck moment too.
@maxfawcett Honestly, I'd be okay with us raising the GST back to 7% if it meant that extra 2% was divested evenly between housing and defense. While the loud minority would cry like the fragile snowflakes they are, 2% more at point of sale is more palpable to me. I may be a minority here.
@maxfawcett Rates will not come off in any significant way this summer. 25 bps maybe 50. It would seriously devalue our currency. Which hurts Ontario - their voting base. Everything about your “thread” is so narrative based it’s hard to even read through. It’s so wrong on so many levels
@maxfawcett It would be prudent to at least attempt to structure debt in a way to take advantage of forward guidance.
@maxfawcett 10 year rates are coming down later this year? Not sure how you project that, but I’d say unlikely.