General discussion post:
I have been taking some International Politics and Economics courses while on parental leave.
My general question is how can the NDP provide its social programs, while not driving up the deficit too much and risking our credit rating. At the end of the day, we live in a globalized world, and will have to engage in the global market, at least in the short-term. That doesn't mean we couldn't accomplish a lot while working within the system.
Raising taxes is the most obvious answer, but what would that look like in practice?
The forms of taxation need to be popular with the public, otherwise the NDP would never survive more than one term.
I'm thinking increasing the corporate tax from 15% to maybe 18% (obviously raising it to more like 25% or 30% would feel good, but that would also likely just drive out business) which would generate billions in additional revenue. 18% would still make us competitive on the global market.
We should also end oil subsidies by gradually phasing them out. According to Environmental Defense Canada, we spend about 10.4 billion on oil subsidies each year (some sources say its closer to 30, others say closer to 4) and that would free up a lot of room in the budget. The smartest way to use that money would probably be through investments in retraining energy workers.
I think increasing the GST on cannabis and alcohol would be beneficial in the short term and generate significant revenue, although this would need to be implemented early into the term since it will be unpopular.
These are a couple ideas I had at the top of my head. I would love to hear from the rest of you!