September 14th, 2015

Bad ideas from Trudeau’s “excellent” economic team: vol.1

Jean-Yves Duclos, one of Justin Trudeau’s key economic advisors and star Quebec candidates, has some pretty radical economic views.

In an article from June 11 2002 Duclos suggested that the government adopt an economic strategy called “citizen income”.

Duclos’ idea involves imposing a 60% flat tax and implementing a non-taxable yearly citizen income of $6,500 per adult, $9,100 per single parent and $2,730 per child.

How would this new system be financed?

“This citizen income would be funded by throwing out several existing programs and provisions, including social assistance, personal income tax credits, child tax benefits, employment insurance, old age security and the Guaranteed Income Supplement (…) In addition, a new single-bracket 60% personal tax rate would supplement the program.”

(Source:http://www.ecn.ulaval.ca/sites/ecn.ulaval.ca/files/professeurs/JeanYvesDuclos/universelle.pdf)

A flat tax of 60%? Cutting EI, OAS and GIS? Is that Mr. Trudeau’s idea of change? Will he be including some of Mr. Duclos’ ideas in his own fiscal framework, if he ever releases one?