Cut back on unneeded "other" spending

St. Boniface - Thursday, October 17, 2002 - by: Mike Reilly

in taxes

Despite its claims of reducing taxes, the Liberal government has increased tax related revenue by $42 billion since 1993. This represents an increase in personal income tax of 15% for each Canadian family. In return for decreased take-home pay, taxpayers have been told to expect reduced health care delivery, minimal defence capabilities, diminished education opportunities and environmental protection only through increased taxes. And each year, little of its flaunted budget surpluses are put towards debt payments.




While the government has reduced funds to areas important to Canadians, they have increased spending in miscellaneous programs which now accounts for as much as 12% of GDP. While many may think this "other" spending provides significant social benefits, much of it is directed at industry subsidies and income redistribution for First Nations and regional development. The Auditor General has repeatedly criticized these programs for being unaccountable for spending money and providing questionable return.



not helping

One visit to a native reservation will confirm that money alone will not help these communities.




Fiscal responsibility is about spending what is needed, not determining where to mine more funding. The government must reduce excessive discretionary spending while reducing taxes. Over the next three years, the government must decrease such discretionary spending by 5% a year in departments such as Human Resource Development Corporation, Heritage Canada, Public Works (by simply eliminating the advertising contracts) and subsidies through Industry Canada to publicly traded companies. In doing so, the government could provide a corresponding 5% cut per year in personal and corporate income tax without negatively affecting revenues needed for health and social service transfer payments.




The $42 billion taken since '93 would have provided more jobs and contributed more to health and social services if it had entered the economy through Canadian's wallets and not Ottawa's unfocused programs.






Mike Reilly


  Editor's note: the image in the background of this page is a picture taken by an astronaut of Winnipeg Manitoba. The image is available from NASA, reference number STS085_STS085-501-135


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