Blogs & Comment

Deficits and taxes

I recently came across this scary chart (see below)showing the trend in marginal tax rates for top-bracket U.S. citizens from 1925 to 1945. It was in a documentprepared by retired professor David Stanley for a Canadian MoneySaver conference in January.
Hopefully, the stimulus to be unleashed in Budget 2009 by the Conservatives will help support a sustained recovery in the economy. If it doesnt, the combination of elevated government spending and shrinking tax revenues might lead to more that a jump in public debt. Maybe this is what Evelyn Jacks meantwhen she warned that the budget deficits laid out in Budget 2009 will mean higher taxes for Canadians in future