Whoa, Canada! Don’t Make Our Mistake in New Zealand

[Oscar]

Whoa, Canada! Don’t Make Our Mistake in New Zealand

[ https://thetyee.ca/Analysis/2025/01/27/ ... ign=270125 ]

By Craig Renney - THE TYEE - January 27, 2025

EXCERPT: "Who tax cuts really helped"

The Canadian opposition is focusing on what it claims is poor fiscal management. Cutting taxes (including your carbon tax), addressing the national debt and managing the deficit are headline issues. This attempts the oldest trick in the book — doing more with less. Somehow, “axing the tax” will make the job of balancing the books easier. All of this is necessary despite Canada having the lowest net government debt-to-GDP ratio of any G7 economy.

New Zealand tried this recipe in October 2023 when a right-wing government swept to power on a similar wave of populist anger. The results so far? Government debt is now forecast to be higher. The deficit is getting worse, and GDP has fallen at its fastest rate since 1991. Unemployment is increasing rapidly, particularly among young people.

The big winners have been higher-income earners who benefited disproportionately from tax cuts, and landlords. . . . ."

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