Carrying on with yesterday’s theme, Bill Morneau decided he would try and be too cute by half and release an open letter of his own, questioning Andrew Scheer’s promise to premiers to maintain the current health and social transfer system, and claimed that he was still advocating a cut. I’m not sure that it was quite right, but it was a novel attempt – and something Morneau rarely does, so there’s that. Scheer, meanwhile, keeps on his affordability message, claiming that he’s the only one worried about it while the Liberals keep raising taxes, etc.
Yesterday, @AndrewScheer failed to commit to Canada’s existing planned increases to health care. By committing to “at least 3%”, Mr. Scheer has ignored the existing formula and our new Health Accord – that means up to $3 billion in cuts over the next two years. My full response: pic.twitter.com/VoZqFVk72J
— Bill Morneau (@Bill_Morneau) August 2, 2019
The thing is, Scheer is wrong about that. He is fond of citing that Fraser Institute report that treats the cancellation of boutique tax credits as “raising taxes” – as it also ignores the tax-free Canada Child Benefit offered to most families as a replacement, and a more targeted one that will actually benefit low-income households at that – much like he’s fond of ignoring that the climate rebates will make most households better off in jurisdictions under the federal carbon pricing system. But beyond that, the data clearly shows that the federal taxes as a share of federal revenues also continues to decline under the Liberals. Scheer’s affordability narrative as it comes to taxes is bogus. Well, except for one particular group, who is not better off under the changes that the Liberals have made. And yet, as Kevin Milligan demonstrates with data and receipts below, it’s certainly not the average Canadians that Scheer claims to be fighting for. But then again, illiberal populists claiming to be looking out for average people while benefitting the wealthiest is getting to be a tired game by this point – and yet people still keep falling for it.
https://twitter.com/kevinmilligan/status/1157388641385062401
https://twitter.com/kevinmilligan/status/1157390752697085952
https://twitter.com/kevinmilligan/status/1157394371806785536
https://twitter.com/kevinmilligan/status/1157396798412976128
https://twitter.com/kevinmilligan/status/1157439654120923136
I'd also add that measures to subsidize/lower prices of certain goods and services would also benefit those who aren't struggling.
And since those who aren't struggling spend more, they'd be the biggest beneficiaries of such a program.
The problem is incomes, not prices. https://t.co/Vmz4ahJGoo
— Stephen Gordon (@stephenfgordon) August 2, 2019