Quote:
Originally Posted by 1overcosc
Continue on the path we're already on. Boosted spending on economy-stimulating sectors while freezing or modestly cutting everything else.
Regarding energy there's really nothing to be done. The costs are being driven by rehab of nuclear, and setting up enough of anything else to replace it entirely would cost just as much. The only exception is bringing back coal but that's unacceptable (environmental costs too high to be worth the reduced energy cost) so we're stuck... unless we want to sell electricity below cost, which is not a good idea in this fiscal climate. In any case even now, and even after hydro goes up another 40% by 2017, our rates are still pretty damn competitive within our region.
Nonetheless, there are some further measures that should be taken, IMO.
1) Elimination of the separate school system--saves money (probably in the low billions) and improves sociocultural conditions too
2) Alcohol reforms. Lower drinking age to 18, allow corner stores & supermarkets to sell beer if they buy a license, allow beer sales at LCBO. All four should bring in more money.
3) Index gas tax rate to inflation
4) Modest increase in the CIT rate, maybe half a percent
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I have to disagree with economic stimuli, if by that you mean giving money to business. If a business is failing it should just fail, plus, you see with Chrysler, they were going to take a loan, but then refused because of public opinion.
Hydro may be competitive but why sell it to out of province consumers for less than the cost of production? It would make more sense to stop paying exorbitant rates to green energy producers 2 or 3 times above market rate and even more to not produce during off hours.
Yes, a single school system would make much more sense and allow us to possibly bring back vocational and technical schools. This would make us seem more competitive in the job market.
Lowering the drinking age would be nice, but that is doubtful. Definitely allow beer at supermarkets and corner stores, but somehow Brewers Retail would get in the way. I am sure of it.
With regards to Gas taxes, they should be lowered. Cheaper gas makes transit cheaper which makes food cheaper...etc. Plus most of the tax on gas is a set rate at 14.7 cents per litre, which means that indexing that to inflation would eventually increase the tax on gas to over half the price of the product. If the inflation rate last year was 3% the tax for 2015 would be 15.14 cents per litre, which gets pretty unrealistic.
Raising the CIT would be nice, but also raise the provincial cut of HST a percent would allow ALOT more money to flow into Health and Schools.