Income Trusts, Taxation and Social Advancement
“It is a paradoxical truth, that… the soundest way to raise the revenues in the long run is to cut the tax rates.” John Kennedy
I have taken this simple but elegant saying to heart on numerous occasions. I noted with more than a little amusement when Mr. Bush enacted his tax cuts a couple years ago he took in more gross revenues then any of his predecessors. Unfortunately he spent the surplus on a couple muddied wars.
The crux of the problem as I understood it was one cannot tax to prosperity. Politicians can merely regulate on a less destructive level. So when I read Joe’s Chinese Democracy Thread I was intrigued. Success is achieved when one is aware of the balance between economic freedom and political freedom.
More recently, I did not understand the full ramifications of the income-trust scandal or to put it another way, the potential loss of investment revenue which has dogged the loonie since the Flaherty’s announcement. link (more…)