Florida economist Dean Stansel, who analyzed the growth records of the 100 most populous U.S. metropolitan cities across the past 30 years, says economic growth tracks state and municipal tax rates. The lower the rates, the greater the growth.
What exactly does the government have to fear from a study of equalization payments? We don’t know. But according to a February report published by the Ontario Chamber of Commerce (“Dollars & Sense: A Case for Modernizing Canada’s Transfer Agreements”), the government has much to fear – most importantly the revelation that Canada’s equalization program now distributes billions of dollars a year to provinces that least need the help.
“California futurist Joel Kotkin anticipates the unequivocal restoration of the United States as the most dynamic country in the world. With its population increasing at a record-setting pace, he argues, the U.S. will grow younger as the rest of the world grows older.”
“Now, let’s see. According to the state treasurer, who should know, California (population 36.4 million) has sovereign debt of $60-billion (U.S.) – $1,650 per person. Investors rate California’s 10-year bonds as slightly less risky than Croatia’s.”
“Economist John Taylor (Stanford University) says government intervention caused the market meltdown of 2008 and that “short-run government spending” has only made matters worse. He dismisses the theory that stimulus spending can jump-start an economy as an “old-fashioned” Keynesian illusion.”
Taken together, the federal, provincial and territorial governments produced this country’s first $30-billion budgetary surplus in fiscal 2006-07, the biggest single-year surplus in Canadian history. This is a great deal of discretionary cash. For $30-billion, you could scrap the GST …