Pauline Marois- Let the Rich Pay!

On Monday, Premier Charest and Pauline Marois had a face to face debate and it was certainly more entertaining than the one held the night before that included Francois David, leader of  the Quebec solidaire, and Francois Legault, leader of the ADQ.

It was clear that Mr. Charest was the better debater and Marois continued her fanciful line of arguments, again ducking direct questions with off-subject and long-winded responses that veered off on a tangent.
Even the moderator, this time the very able Pierre Bruneau, called her to order as she ducked the question as to whether she would initiate a referendum in her first mandate.

Shucking and jiving, she avoided giving a direct answer even after three forceful interventions by the moderator asking her to PLEASE answer the question that was asked.

All this being said, I don't think Charest made up any ground and the minds of very few voters were changed.

What did intrigue me was Marois' insistence that she would cancel the $200 flat rate health tax, which she claimed was unfair to the poor. She insisted that her government would recover the money from the so-called 'rich,' those who made over $130,000 per year.

It's a popular notion among her constituency, after all, only 4% of taxpayers do earn over this amount and if they have to pay, well all the better for 97.2% of Quebecers who would get off scott free, under her proposal.

These privileged 4% already pay over 33% of the personal taxes collected in Quebec and for Pauline, it isn't enough!

Just for fun, Let's examine just how 'lucky' these taxpayers are and how much they'll get left with after the PQ adds another $6,500 to their tax bill, the amount each of them will pay as an extra tax in order to offset the $950 million she is short, by eliminating the universal health tax.   Link{Fr}

Here is the case of a Quebec taxpayer making $130,000 a year, who owns one car and a home with an approximate value of $375,000.

Taxes paid;

$46,000 ..............Federal and Provincial Income Tax
  $8,000 ..............Levies for Quebec Pension and employment Insurance
  $1,600 ..............Tax on gasoline, car registration and license
  $3,750 ..............Municipal Taxes on  home
     $300 .............. Welcome Tax (prorated over 10 years)
     $300 .............. alcohol and cigarette tax
$10,000 ..............GST & TVQ
  $6,500 ..............Marois' new health tax

$77,650 ..............Total taxes paid, 60% of income

$52,350 ..............After tax income.....40% of income

Readers should also consider that employers pay levies as well, in relation to each employee. This pays for medicare, and employer contributions to the QPP, CSST, Normes de Travail, Parental leave etc, etc.

For an employee making $130, 000, it works out to another $15,000 a year, money that would rightfully belong to the employee if not for the taxes.

Now my facts and figures are as accurate as far as a four hour search can be, they are decidedly rough calculations, but if I am wrong, I probably erred on the low side, considering all the other hidden taxes we pay.

Please don't send in nitpicking comments, I stipulate in advance that this is just a general study that is useful, because it shows just how much these so-called 'rich' people contribute.

The fact is that taxes in Quebec are stifling and every time our politicians come up with ideas to tax more, they shrink from their duty to spend wisely the money they confiscate.

Now Marois hasn't had her chance to muck things up further, her turn appears to be coming and by all indications, she will follow in the fine tradition of a tax and spender.

The PQ is no more guilty than the Liberals in overspending, but the scary part of Marois is that she is oblivious to the problem.

In every speech she has given, the emphasis is on cutting taxes and increasing spending.

Whether it is Charest, Marois or Legault who becomes the next Premier, spending will remain out of control because until serious measures are taken to reduce entitlements, cut back exaggerated subsides to private companies, cut the bloated bureaucracy and get control of runaway public pensions, Quebec will continue its course towards a Greek tragedy.

It can't happen here.
That's what the Greeks thought until three years ago and I bet the same applies to the Italians, Irish, Spaniards and Portuguese today, all living in a pretend world, ignoring the awful truth that the financial shoe is about to drop.

We are soon approaching our breaking point as well, maybe not in a year or five but it is approaching.

Pauline Marois, who views these financial problems through rose-coloured glasses is just the useful idiot to send Quebec past the tipping point.

The very essence of a separatist government and the uncertainty of an undeclared referendum, will become a veritable Sword of Damocles hanging above our financial heads.

In layman's terms it is a financial buzzkill.

In the end, Madame Marois will find out that she is in no position to tax the rich. There isn't enough of them and there will be relatively less in the future.

One last point before I go today and it is about another one of Madame Marois' promises, the one where francization rules will now apply to companies with between 10 and 49 employees.

In France, there is a law that imposes an incredible burden upon employers, once they grow to over 49 employees.
The result........Companies refuse to grow.
Read a fascinating article in BusinessWeek: Why France Has So Many 49-Employee Companies
The realty is that many, many companies, like in France, will stop growing or they will take extraordinary measure to avoid the 10 employee threshold, including sub-contracting and opening multiple companies, instead of one.

The government bureaucrats believe that they can control everything by fiat and that everyone will meekly go along with their nonsense.

The very best and simple example of this hardheadedness was the doubling of tolls on the Laurention Autoroute in 1985 from 25¢ to 50¢ in one fell swoop.
 Here, I'm actually quoting myself;

"...The toll plazas were old and weren't equipped with mechanical arms that came down to act as a barrier until payment was effected. The system was a simple red light/green light affair with a bell and flashing red light triggered in the case where a motorist stiffed on the payment. Supposedly, a police car parked in reserve would pursue and ticket the offender.
But the volume of scofflaws became enormous and it was impossible for the police to cope. At a certain point, it became hugely embarrassing to the government and action had to be taken in order to maintain public order. The government, had no choice but to re-build the toll plazas to incorporate barrier arms, but balked at the cost and more importantly feared the backlash that such an action would engender.
So they did the only thing that they could. They got rid of the tolls completely and went from a 25¢ toll to 50¢ and then to nothing.

Government types calculated that it would double revenues without ever considering consumer reaction."

Another planning fiasco that failed to take into consideration that people act in their own self interest and that paper predictions are almost always flawed. Perhaps our bean counters should remember the old adage-
"Men Plan, God laughs." Link

The same thing will happen if Marois goes ahead with her anti-English, anti-Ethnic and anti-religion agenda.

It's called PUSHBACK and it's coming.

LATE DEVELOPMENT 

As you might have heard, Pauline Marois unloaded a bit of an unexpected bombshell yesterday when out of the blue, she announced that when elected, she will introduce legislation requiring those running for public office to pass a French test.
To me as an election observer and an ex-organizer it was not only telling, but frightening..

You see it means that her handlers who are steering her campaign are confident that this line is of attack is striking a cord with voters.
They wouldn't have dropped this bombshell without some very specific internal polling numbers that is telling them that anglo and ethnic bashing is resonating.
Confident that all she has to do to win the election, is to hold onto the hard-cores, she is playing up the race, religion and language card.
This latest pronouncement will steal votes and maybe a percentage point or two from hardcore Quebec Solidaire and Option Nationale supporters. That is all she needs.

It is actually quite frightening, even for an old cynic like me.

Quebec Anglos, Ethnics and religiously observant....Be afraid...Be very afraid! 

We are headed towards dark times.