For days now we all have been hearing from the media about the Liberal plan to 'rescind', 'defeat', or 'cancel' the conservative corporate tax cuts that are supposedly in the next budget, but there are a couple of problems with that.
#1. The budget contains NO corporate tax cuts. None, zero, nada. There is nothing to oppose or defeat as these cuts have been in place since 2007 and have just been implemented as scheduled starting January 1st 2011. Why the misleading headlines? Your guess is as good as mine.
#2. Since the cuts are ALREADY in place any change to the tax code would not be merely be a cancellation of a proposed cut but rather a tax increase over the current rates. Companies would pay more than they are paying today, and that is a tax increase!
Think of it this way; if (more likely when) Ignatieff increases the GST would anyone refer to that move as simply canceling a tax cut? OK, some in the MSM probably would but they don't seem to understand the situation most of the time before they actually report on it, as the coverage of Ignatieff's corporate tax increase clearly shows.
Call it like it is, the Liberal plan is a tax increase.
And if they do manage to somehow get elected I will wager that it won't be the only one we will see either.
GST hike anyone?