debt and taxes.

[Sam Pawlett]

The Vancouver Sun ran a story yesterday claiming that the rise in
consumer debt is a direct result of high taxes, the Sun cited a report
by CIBC Wood Gundy( one of the top investment/market research firms here
in Canada) arguing same. The right-wing has been pushing this line since
it is no longer possible for anyone  to deny that real incomes have
fallen.Yes, incomes have fallen but its because of high taxes. They then
cite the fact that the marginal tax rate for the highest quintile in
Canada is 54% while in the U.S. its 39%. But the U.S. has a consumer
debt problem too, and Canadian tax-payers get "more bang for the
buck"(fuck I hate that cliche) in the way of health care, safe streets,
less poverty, massive corporate subsidies( the Minister of Culture here
stated on the CBC last week that every corporation operating in Canada
gets a subsidy). The rise in consumer debt is not because of falling
real wages due to the class offensive by the bourgeoise trying to regain
corporate profitability in the face of profit squeeze and/or competition
between individual capitals. They neglect to mention that consumer
credit gives the illusion that the goodies are available to everyone who
works hard, that consumer credit helps shore up effective demand. Many
people use credit cards not just for discretionary spending but on
essentials like electrical bills, tuition, food, day care etc. Would
lower personal income taxes lower the level of consumer debt? What would
be the evolution of the economy without credit cards? Can anyone clarify
the relationship between consumer debt, credit, taxes and income? Also,
can anyone recommend good _empirical_ books/articles on the history and
nature of consumer credit?(not PKT a la Minsky or R. Guttman).

Sam Pawlett.