Wednesday, September 10, 2008

Harper's proposed tax cut

Mr Harper yesterday proposed a reduction in the excise tax on diesel fuel, of 2 cents per litre, to be implemented at some point in the next 4 years, at a cost to the treasury of approximately $600m. It is hard to think of a good reason for such a tax cut, except for a political one: the Prime Minister wants to be able to compare a program of tax "cutting" with the Liberal proposal of tax increases on carbon-based fuels. Of course, a tax cut on diesel just means some other tax cut that can't be implemented.

This proposal is a sad example of the triumph of politics over policy in a campaign.

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