Path: utzoo!utgpu!watmath!ubc-cs!fs1!coho.ee.ubc.ca!hook
From: hook@coho.ee.ubc.ca (Chris Hook)
Newsgroups: can.general
Subject: TAX REVOLT!!!
Message-ID: <401@fs1.ee.ubc.ca>
Date: 15 Aug 89 16:20:27 GMT
Sender: news@fs1.ee.ubc.ca
Reply-To: hook@coho.ee.ubc.ca (Chris Hook)
Distribution: can
Organization: Dept. of Electrical Engineering University of B.C.
Lines: 43


  I find it interesting that a number of people find the taxation increase
to be reasonable on the basis of Canada providing "better" social services.
Those social services were built, in many ways, around our previously
affluent natural resource economy, which is no longer so affluent. We did
little more than drag up resources out of the ground and ship them off
(often unprocessed). This provided much wealth for the country without the
development of much industry. THIS WAS A GREAT FREE RIDE to be sure. But
the steady evolution toward a more global economy (just one of the factors
involved), etc. has killed this free ride for good. Then came the great 
nationalization of our energy (remember Petro Fina?) which incured an
absolutely HUGE national debt.
  
So what the scenario? We had a rather comfortable ride for quite a while.
despite the RIDE ending, government spending increased, an the so-called
national energy policy sent the spending rigth through the roof, as far as
national income was concerned. Our per capita debt is the highest in the
western world. So then, how can we keep all these COMFY social policies
when we are carrying a huge debt and don't generate enough GNP to offset
it? 
  
The tory solution. TAX the heck out the people of Canada. Truely, Canada
must do something, as our debt is fierce. How well has a taxation solution
worked in finacial recovery of other countries? I would venture to say, 
looking at a bit of financial history, NOT VERY WELL at all. We do have
a big problem that must be resolved. But when I look at the crippling 
effects of heavy taxation on other economies (past and present), I think
it to be an absurd solution to the problems we now face. And this all
coming from a supposed pro-business gov't.

What I would like to see in this discussion are reasonable alternative
debt rteduction plans, or increased national wealth plans. This is what
Canada really needs, not heavy handed taxation.
  
As a final comment, I find it a bit short-sighted to talk about how much
better our social policies are as compared to the U.S.A.. We are living 
WELL BEYOND OUR MEANS having these social policies. As I have pointed out
earlier, they were made possible but almost dumb-luck (i.e., easy natural
resources) earlier in this century. Lets wait and see just what social
policies we are able to keep when all the finacial shakedown finishes.
By the way, the U.S. does not have the same low cost health and welfare
polcies as does Canada, but they also don't live beyond their means to the
same degree as Canada does either.