Supply chains, worker wages and the price of energy has been blamed for the current bout of high inflation. But central bankers around the world are starting to clue in to something consumers have been aware of for a while — corporations just aren’t afraid to raise their prices anymore.
We should apply it the other way: Tax Surplus. There’s a lot of valuation in companies in billionaires that could be taxed better.
I agree. Another economic concept is tax incidence, that is the term for who ultimately pays taxes. Conservatives like to pretend that all tax is paid by consumers, but this is a naive/trivial viewpoint because companies cannot set infinitely high prices, so tax may come from profit.
It’s true that increased taxes don’t always see the full incidence land on profit, but alot of it does because pockets aren’t endlessly deep so prices can’t be raised to offset all tax. I believe in using windfall taxes to prevent profit driven inflation.
They also like to pretend they care about balanced budgets and monetary supply. Guess what? Taxes both balance the budget AND they evaporate money from circulation, reducing actual inflation. They ignore that because taxes are the ONLY lever that is progressive; where we can spread the pain equitably, asking the wealthy individuals and corporations to pay the largest share. That’s a terrible idea /s
deleted by creator
Man half the population wouldn’t allow that. Call it socialism and scream about freedom.
Sir, this is !Canada. 2/3 of our population does not vote conservative.
The Liberal Party of Canada is fiscally conservative.
I think it’s important to point out that the Liberal Party is fiscally liberal, not fiscally conservative. While both philosophies think a market economy is the best economic system, a fiscal liberal is more inclined to use fiscal policy to intervene in that market economy to rectify social or economic inequalities .
For example, a fiscal liberal will support a public health system, a public broadcaster, $10 a day childcare, and EV / electrification/greening grants.
A fiscal conservative will be more laissez faire, and not want any of those things.
I bring this up because by not recognizing the difference we set ourselves up to put conservatives back into power, after all , “both sides same”.
Ya, after posting I regretted not clarifying that they are not nearly as far right as the Conservative party. They are willing to be more fiscally liberal in order to enact liberal social policies. Thanks for clarifying.
But they are still quite fiscally conservative when compared to Bloc or NDP.
The liberal party and conservative parties both work for big business. Whether it’s tax cuts or importing cheap labor, the federal government isn’t interested in cracking down on corporate greed.