OTTAWA – A new poll suggests nearly half of Canadians are living paycheque to paycheque as the cost of living crisis continues to squeeze household budgets, and young people are more likely to s...
Part of the problem is that none of the parties address the real problems created by their actions. Liberal introduce a nation-wide carbon tax that should in theory tax large companies.
In reality: Companies don’t pay taxes, they raise their prices to cover the tax increase which “trickles down” (the only time trickle down economics actually “works”) to the people.
So without dealing with that scenario when implementing the taxes, the ordinary Canadian gets hosed.
But now lets say PP becomes prime minister and reduces the taxes. Is he going to force companies to drop their prices to make up for that? Probably not. Companies will just use that as profit. So Canadians are still getting hosed.
And now after that lets say Liberals rise to power again. And re-implement these taxes. Once again, the companies will just pass those added costs onto the consumer again.
I wish I knew what the solution is here but I really don’t. It feels like no matter what the government in charge does, companies just keep using it as an excuse to hose us one way or the other.
Part of the problem is that none of the parties address the real problems created by their actions. Liberal introduce a nation-wide carbon tax that should in theory tax large companies. In reality: Companies don’t pay taxes, they raise their prices to cover the tax increase which “trickles down” (the only time trickle down economics actually “works”) to the people.
So without dealing with that scenario when implementing the taxes, the ordinary Canadian gets hosed.
But now lets say PP becomes prime minister and reduces the taxes. Is he going to force companies to drop their prices to make up for that? Probably not. Companies will just use that as profit. So Canadians are still getting hosed.
And now after that lets say Liberals rise to power again. And re-implement these taxes. Once again, the companies will just pass those added costs onto the consumer again.
I wish I knew what the solution is here but I really don’t. It feels like no matter what the government in charge does, companies just keep using it as an excuse to hose us one way or the other.
Governments mandating lower prices when taxes are raised won’t go well either. They’ll simply lower the quality of the goods and the same price
Absolutely agree. “Shrinkflation” is already a real problem used by many companies to give the appearance of not raising prices.
Also ‘skimpflation’ - like reducing the proportion of expensive ingredients or reducing the quality of ingredients