Tax Cuts Redux

Further to my post on tax cuts last week, the Toronto Star has an excellent article by Lisa Philipps today on the breakdown of the benefits. 

Philipps notes that those earning less than $35,000 - more than 60% of tax filers and mostly women - will gain no benefit but the additional $33 a year due to the increased personal amount.

Those earning more than $80,000 - 8% of tax filers and mostly men - get the biggest cut, and they are the ones most likely to save rather than spend.

Philipps also highlights the nonsense of the tax-free savings account as policy.  In five years, the tax cuts will cost federal revenues more than $4 billion a year, but the tax-free savings account will start adding up to big numbers as well.

In the context of economic stimulus, these tax cuts simply do not make good sense.