Monday, October 30, 2006

Sask: Of course the PST cut is sustainable

I got around to reading Murray Mandryk's Saturday column, in which Murray is ringing alarm bells over whether last week's PST cut is sustainable, this morning.

After all, what makes great politics often makes for pretty bad government policy.

There are obviously reasons for the public to be legitimately concerned about how sustainable these tax cuts are -- especially given that the first thing the government did after getting re-elected in 2004 was to hike the PST in the 2004 budget to seven per cent from six per cent.

It's funny that Murray would suddenly start talking about sustainability when taxes are cut, but rarely when the government hikes spending by double digits.

The PST cut will save taxpayers $325 million per year. The government has increased spending by an average of $539 million each year since Lorne Calvert took over, or an average annual increase of 8 per cent.

How sustainable is that?

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