After reading Nathan Giede's article I was left amazed at the lack of history that was left out of this article.
During the '90s, it became apparent by the ruling Liberals that the debt of the Canadian government was getting out of hand.
Finance Minister Paul Martin set out to stop the red ink. He raided the unemployment insurance commission account, the civil servant pension account, reduced transfers to the provinces, and sold off Petro Canada and other Canadian assets.
After a few years of underfunding social programs, the Liberals were able to stop the red ink.
As soon as a surplus was realized out came the right wing conservative groups.
The Fraser Institute, the Canadian Taxpayers Federation, the Small Independent Business Council and the for-profit media were all clammering for a reduction in business taxes.
When the Harper Conservatives came to power there was a surplus. In their first budget they reduced business taxes as they had promised.
Had they not done this we would have continued to reduce our debt at a hiigher rate. On their third budget of their first mandate they reduced the GST by one per cent as they had promised. Economists at that time indicated that this was the wrong thing to do. We were now back into deficit financing.
The GST was reduced a further one per cent during the next mandate.
During their terms in government they increased the debt by a whopping $159 billion.
After reading Nathan's article, he says that if he was in the driver's seat he would do this and this. All fine and dandy, but it doesn't identify the real problem. The biggest problem I see has been that the Conservatives and the Liberals are too cozy with wealthy business people.
These people support four or five different lobby groups. The old story rings true you hear something enough times you believe it to be true.
Political parties are charging excessive amounts of money to rub shoulders with elected officials.
This gives the above mentioned lobby groups and business owners a lot more access and influence to elected officials.
The only group representing the small taxpayer is the Group for Alternative Action that sometimes gets invited to some of these events but when you realize that this group is outnumbered by a half dozen conservative lobby groups, it's easy to see which message is getting across.
How would I approach a budget?
Return taxation, including business taxes, back to 2002 levels over a four-year period.
Close loop holes that include off-shore accounts and also stock options.
Professional training would be deducted dollar for dollar from taxes owing provided that this training is related to the business the company does.
Research and development would be deducted dollar for dollar from taxes owing.
Infrastructure needs serious work.
Unlike Nathan I would ear mark
$15 billion in the first year.
The Armed Forces need an upgrade. I believe its 0.5 per cent of the Gross Domestic Product. Add another one-quarter of a per cent. Combine Coast Guard with the RCMP. Upgrade equipment.
Advertisements would only be done after a bill is passed into law.
When the country starts to see black ink, we do not reduce taxes until we eliminate the debt.
Stan New
Prince George
