I loved the title of Stephen Gordon's post on a proposed new policy: Quebec: An oasis of sanity in a desert of GST/HST silliness.
The government of Quebec is considering a one-percentage-point increase in sales taxes. While no one likes a tax increase and there are very legitimate concerns about the deadweight loss from taxation, this is simply smart economics as the debts racked up during the recession are not going to pay for themselves. Sales taxes are the correct target as they due the least damage to the economy per dollar collected - a fact understood by FairTax supporters.
I too am delighted to see a politician promote a policy that makes economic sense. We have not had a lot of that lately.
The government of Quebec is considering a one-percentage-point increase in sales taxes. While no one likes a tax increase and there are very legitimate concerns about the deadweight loss from taxation, this is simply smart economics as the debts racked up during the recession are not going to pay for themselves. Sales taxes are the correct target as they due the least damage to the economy per dollar collected - a fact understood by FairTax supporters.
I too am delighted to see a politician promote a policy that makes economic sense. We have not had a lot of that lately.
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