Tuesday, April 6, 2010

Silver Called It: NS NDP = Incoherent Economics, Despicable Political Ethics

I've never forgotten Silver's awesome dissection of the NS NDP's, uh, platform?
Maybe, platform is far too expansive a term given that the N.S. NDP's entire plan for government - and they do, by all accounts have a shot at forming government - is four pages (PDF) including glossy pictures, the "costing" of their "plan" and pictures of ordinary, average voters (some of them sitting at their kitchen table). (...) Of course if you flip to the front of the platform (back to page one, hope your wrist isn't tired yet), you will see that the NDP has actually promised to provide 1,000 grants for home retrofits. That's THOUSAND - singular - not THOUSANDS of homeowners. Not only is their platform beyond vapid. Not only do they do the single worst thing they could do for climate change. The FOUR pages are internally inconsistent.
It's a natural evolution from an incoherent four page platform to a dishonest, incoherent budget, I guess. I'll be curious to see how Totters respond to the NS NDP Budget, esp. those who have most ranted about the HST.

Putting aside politics and ethics for a second, economically, I've seen worse budgets, but the NS NDP budget is deeply incoherent. The HST rise, compensated with increased credits for low-income, is good, as is increased tax on 150+K. Bad is decreased tax on 83-150K - incoherent. Also, if deficit is the thing, why cutting corporate taxes? And by so little? I strongly disagree with corporate tax cuts, I would raise them, along with everyone else - everyone should have to do their part to stop deficit, corporations & individuals, on progressive basis, though. But if going to cut corporate taxes, to draw/keep business based on empty Reagan-Bush-Republican supply-side mythology I guess, since no empirical evidence, then that logic dictates massive corporate tax cuts, cutting minimum wage, etc. as one pursues a Duplessis-Alabama strategy. You've got to go big: can't half prostitute oneself. Half a point just irritates taxpayers compared to their own situation, and does nothing to draw investment. Also, should have raised gas tax, and all environmental taxes, with credits/compensation on progressive basis. Why are they keeping the energy rebate for everyone? That is regressive and anti-environmental! Eliminate it, make everyone pay market rates, and compensate them on a progressive basis.

The ethics and politics of this budget are atrocious, breaking their word so baldly, so quickly, and with such regressive and anti-environmental measures mixed in. Stupid Totters. And as far as crafting a decent political message, who thought it would be a good idea to give corporations tax breaks and subsidise wasteful anti-environmental behaviour while raising taxes on individuals? It wrecks the whole narrative. If you say "tough times, we're in it together", that can work. But then EVERYONE HAS TO PAY, ON A PROGRESSIVE BASIS. Old politics. Gives a bad name to all politics. Means a half-decent budget will be hated as exposes NDP campaign as complete lie, predictably. Sad. Probable minority Government for someone else next time. Hope it's the McNeil & the Liberals, they ran a mostly coherent campaign last time: fairest, most honest and best.

Calgary Grit
asked what gives with tax hikes and politicians, these days. I find myself in the odd position of agreeing with Josée Legault's analysis, in some respects (she's always mesquine & usually deranged). People support smart & fair taxes (McGuinty's health tax and seems to have won debate on HST). They oppose unfair, stupid taxes. Why? Because they make the connection between taxes and services, and fair and unfair. Why: more connected, more informed public than ever. When Charest cut income taxes after receiving "fiscal imbalance" funds, a strong majority disagreed, would have preferred money kept in services. They now disagree with his proposed substitution of regressive flat health taxes for progressive income taxes. People get it, more than ever. BS less useful, even counterproductive nowadays (unless in our particular 5 party federal environment, which promotes narrow-casting and thus demagoguery).

PS. I just realised that the NS NDP have also hidden the fact they have de-indexed taxes in a small note at back, claiming inflation was insufficient to merit continued indexation. Nice. Colbert would be proud. That is a really dirty regressive trick.

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