I listened to Don Newman's expert economic analysis of the 2010 federal budget today, and his charge is that for the deficit reduction projections to be accurate "everything has to go right" and the possibility of that is virtually zero. Meanwhile others like Amanda Lang and many Liberals are saying that the bureaucratic budget cuts or freezes are not possible and will result in loss of essential services to millions of Canadians (despite millions of Canadians believing taxes are too high and government is too big). It seems as though the left wing pundits are pushing from both sides. Cutting spending won't work, and therefore the only other way to balance the books is to raise taxes. If you raise taxes on individual citizens, then they spend less money. When you raise taxes on businesses, they fire employees or even leave the territory.
I hear a lot of people say how important it is to reduce the deficit immediately, but that you can't cut government spending. They are basically eliminating all choices BUT raising taxes, without actually saying that the alternative is raising taxes. By turning up the heat on the deficit and declaring spending cuts impossible or immoral, they are laying the foundation for an increase in taxes. Jack Layton is an outspoken advocate for raising taxes, and sure to be a willing dance partner in any such legislative initiative in the future. We know Gerard Kennedy wants to increase the sales tax. Kevin Page wants to raise taxes. Good luck getting Ignatieff to actually admit that he wants to raise taxes, but given all he has said in this week, he is leaving the government with no alternative.
Personally, I liked the budget. I would have liked some deeper cuts, but that's just because of my innate contempt for the Canadian Union of Public Employees. Tightening the government's belt is a very delicate procedure, but you have to start somewhere. In February I ran a few webpolls on this subject.
DO YOU THINK RAISING TAXES ON BUSINESSES CREATES JOBS?
No (97%)
Yes (3%)
ARE PUBLIC SECTOR UNIONS A GOOD PLACE TO REDUCE GOVERNMENT SPENDING?
Absolutely (93%)
No opinion (6%)
Hands off (1%)
HOW WOULD YOU PREFER TO REDUCE THE DEFICIT?
Cut spending (95%)
Raise taxes (5%)
Maybe other provinces should look west to Alberta where we slayed the debt by 20% reductions in the public service and other government programs.
ReplyDeleteIt is Alberta and Ontario that have been keeping Canada afloat and now Saskatchewan and Newfoundland have joined us, while big spending Liberals in Ontario have driven their province into the ground. Three small population provinces can not carry Canada forever.
Quebec ignores it's massive debt and cries for more money to keep them in the style they deserve.
It's time for the federal government to stop transfer payments to any province that has a deficit. Make them balance their budgets before they get any more money from the have provinces.
Don Newman, is he still around?
ReplyDeleteBut Ignatieff already said "We will have to raise taxes", of course he lied about it afterwords but he did say it.
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