Wednesday, May 03, 2006

Tax Cuts are a Good Thing

Yesterday the Conservative government delivered its first budget with a big emphasis on tax cuts and delivering on campaign promises. Some highlights include:
  • The promised 1% cut in the GST
  • The promised 1,200 per year Universal Childcare Benefit
  • Sort of Lower Income Taxes (ie Lower than legislated, but not lower than announced in the Liberal's fiscal update last fall)
  • $1000 per year Employment Tax Credit
  • More money for the military
  • More money (in the medium term) for farmers

This budget is good news for Canadians, it really is difficult to criticise it the attempts ring hollow. This Globe and Mail article was toned down from it's orginal headline that suggested Canadian Soldier's had received only a pittance. Infact, by 2010, military funding will increase to nearly $20 billion from the current $14.5 billion.

It is also a good budget for conservatives as this short article explains.

The Conservative government has done an excellent job with this budget. Now it's time to charge ahead with the legislative agenda.


Anonymous said...

Actually, Mr. O'Neil, with all due respect, when the math calculations are performed Canadians are further disadvantaged.

For the 90 percentile taxes will actually increase. That in combination with rising gas prices will no doubt pay for the war.

It virtually degrades to "pennies" thrown at the public with a sense of arrogance and flair many have rarely seen demonstrated.

As Duceppe correctly pointed out: this is a "transitional" budget, the "real budget" will be next year. When the math is done, in many's views it represents another scam situation and this after the Adscam.

People of conscience know there is indeed 'accountability' at the end the road -- on an individual and collective basis. Only it will not be what we all expect.

Patrick O'Neil said...

Dear Anonymous,

Thanks for your post. I'm open minded, can you enlighten me what you mean by "when the math is done taxes will increase. Show me the math.

I won't argue that the budget has some spin. An accountant friend pointed out that the $1000 tax credit only saves $155 since tax credits are applied at the lowest rate of return.