Sunday, December 23, 2012

Republicans on the no new taxes road to ruin

The Republican party in the U.S. has taken that road for almost two decades now and our Prime Minister has imported that no new taxes philosophy to Canada. Conservative sycophants all over the country have followed his lead. Yet at years end, take a look at what's happening in our neighbour to the south. The budget negotiations in the U.S. over the fiscal cliff have laid bare where the absolutism of the no new taxes stance can take you. Instead of permitting tax increases on upper income earners, the Republican radicals would rather let the fiscal cliff kick in and cause tax increases for all Americans and massive spending cuts, sending the U.S. into recession. Tying themselves in knots over being seen to raise taxes. The New York Times has a story today on how the Republicans arrived at this place: "How Party of Budget Restraint Shifted to ‘No New Taxes,’ Ever."

It's the road the Conservative Party of Canada is on as well, and possibly, other federal political parties if they continue to bow to Conservative political pressures. We are not on a fiscal cliff but we do have a structural deficit and other major challenges.