So there is some political news here recently about sudden changes regarding a tax cut for income tax. It was a very odd announcement as many people view this as simply a way to buy public support for a party that doesn’t have a good approval rating. The interesting part for me was reading how in order to accomplish this they would have to prolong the provincial debt.
I was just thinking how while it is nice to get money back, in this situation it just makes no sense to jump out of a tax routine that people are used to and at the same time it can just make the debt bigger and longer. Kind of like using a credit card where you are used to giving up say 10% of your paycheque to pay off a large part of the balance. Then all of a sudden you think it makes more sense to just keep more for yourself and allow the balance to grow higher.
Just makes more sense to focus in wiping out a debt like these first I’d say. Especially if you have adapted your lifestyle to only use income earned after taxes to manage your daily financial needs.