Earlier this week, the CEO of Canadian insurance giant, Sun Life, warned that Canada is "no longer competitive." Naturally he was referring to the latest round of Republican tax cuts for corporations and the rich. As I wrote at the time, it's just another corporate shakedown in the era of "everyday low taxes."
Ottawa University's Allan Freeman wrote a piece in iPolitics, "Low taxes destroying the best of the U.S. and risks coming here."
America is in a race to the bottom and, unless Trudeau develops a spine pretty soon, we're at risk of getting dragged down with them.
It's a common problem in the United States and it extends through federal, state and municipal governments. Governments are broke and broke governments are broken governments. You can't lavish windfalls on the rich, especially not when you're already running deficits, without someone paying for your largesse and, oddly enough, that's inevitably the poor and most vulnerable.
This seems to be a particularly severe problem in the Deep South, the Slave States. Here's the latest object lesson - Louisiana - a state with a Democrat governor and a legislature under Republican control.
Louisiana Republicans vowed to do something about the $650-million deficit and so they did. Now the governor warns that 37,000 Louisiana medicare recipients may lose their health care, both state medical schools may be shuttered, and several major hospitals may have to lay off staff.
The Louisiana Department of Health, on orders from Democratic Gov. John Bel Edwards, mailed 37,000 letters out to people Tuesday who rely on Medicaid health care programs that are considered “optional” under federal guidelines. The letters warned them they could lose their home health care aides and be forced out of their nursing homes starting July 1.
...The reason? The Republican-controlled state House of Representatives made deep cuts to the proposed budget to make up for a $650 million shortfall rather than continue a temporary tax which ends on June 30 — and had been buttressing the bottom line.And that's the face of the race to the bottom. Do you trust your government to resist getting dragged into this?