Agenda item one for the Conservatives should be to cut spending. Item two should be to dedicate savings to debt reduction. Canada's debt currently stands at $472-billion. Since 1961, debt interest and service charges have cost taxpayers almost $1-trillion. Canadians would welcome a plan to pay off the debt. It can be achieved if Parliament passes a debt repayment law with annual payments of 5 per cent of total revenues. Each year, Ottawa squanders $34-billion paying interest. As the debt is reduced, significant savings will be realized through lower interest payments.
The third policy item is to cut income taxes, since Finance Minister Jim Flaherty is not taxing to collect money to fund programs, but rather finding ways to spend money government collects. Two years ago the federal surplus totaled $13.2-billion. Last year it was $9.2-billion. The spending of surplus dollars is responsible for Ottawa's 14% expansion.
The only real problem with legislated debt repayment is the same one experienced by the likes of Ontario and the "Taxpayer Protection and Balanced Budget Act."
Let's all remember Ontario did not post a balanced budget with that legislation in place .
It is far better for the government to make debt reduction and spending reduction goals like "Reduce Canada's debt by XX billion over the next 5 years." That's measurable. "Reduce spending by 10 %" that would be another.
However my guess is that for the current Conservative government none of those schemes seem like electoral beating sticks.
John Williamson provides only one useful piece of advice for the Federal government: "Agenda item one for the Conservatives should be to cut spending."
ReplyDeleteDebt reduction and reducing tax rates are not secondary nor tertiary goals but rather they are practically irrelevent because the federal government has the power to print money or more accurately to issue debt to finance spending.
What good is a tax reduction if the currency with which you are forced to pay your taxes is inflated?
Answer: No good at all except to make you work more.
Sorry but the Tax Payer's Federation of Canada is just confusing the nefarious effects of state intervention in the economy.
"What good is a tax reduction if the currency with which you are forced to pay your taxes is inflated?
ReplyDeleteAnswer: No good at all except to make you work more.
Sorry but the Tax Payer's Federation of Canada is just confusing the nefarious effects of state intervention in the economy."
Well how 'bout this Charles Anthony: I'll get Harper to cut taxes and you can give me your tax cut since it won't matter anyways because your money will be inflated to hell n'est-ce-pas?
I sympathize with your criticism of the government's power to print money, but to go the extra length of suggesting that giving taxpayers more money is pointless due to inflation isn't being fair IMHO.
If I receive a 10% tax break, so long as inflation is not over 10% I stand to gain money. Introducing monetary reform is fine and dandy, but don't go putting down the taxpayers federation for encouraging policies that move the state in the right direction.
That's like suggesting that since we can't save 5000 slaves, we shouldn't save 250. Progress is progress.