the LYNCH report

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Auto Bailout Cost to Canadian Taxpayers…

with 2 comments

The Globe and Mail reports¹ the total cost of a so-called bailout of the “Big Three” by the Canadian government, which has committed to 20% of the US government bailout, to ultimately cost Canadians between $15 billion and $25 billion.auto-bailout

What’s that mean for the individual Canadian taxpayer?

According to Statistics Canada, there were 9,275,765 full-year, full-time earners as of 2005². That’s a pretty good proxy for the number of income taxpayers. So, let’s take the conservative figure of a bailout cost of $15 billion. That puts each full-year, full-time worker in Canada on the hook for $1,617.

Of course, if you personally believe in supporting the “Big Three”, there’s nothing preventing you from voluntarily using $1,617 of your income to either buy their products or their shares. Unfortunately, the government’s bailout proposal removes that choice from the taxpayer and forces the issue, whether any individual agrees with spending $1,617 of their income to support three private companies or not (and would perhaps prefer to spend $1,617 of their hard-earned money to bail themselves out instead)…

2 Responses

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  1. How much is Mexico putting up to help the Big 3 auto makers. That’s where all the jobs are going. Just a thought.

    kanadianbakin

    December 18, 2008 at 5:30 pm

  2. $1,617 = 2 months’ rent
    vs
    beter chance of keeping your job (10% ‘official’ unemplyment, vs 25%? 50%? we’ll never know)

    nospam

    July 10, 2011 at 5:49 pm


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