“Credit where due: the Harper government has shown the necessary discipline to get the books back into the black. We’re also encouraged that they’ve resisted the temptation to go on a spending spree in an election year,” said CTF Federal Director Aaron Wudrick. “Moving forward, it will be important to control spending – future spending in this budget is still projected to outpace inflation – and instead begin to apply the savings to our federal debt, which now sits at well over $600 billion,” he added.
The budget also includes welcome measures to leave more money in the pockets of Canadians, including an increase of Tax Free Savings Account annual limits to $10,000, and a reduction in the small business tax rate to 9 per cent.
“These measures will ensure that individual Canadians and their families are further empowered to make decisions about how their own money is best spent, especially when it comes to saving for the future,” said Wudrick.
The CTF also noted that contrary to popular perception, this government does not face a shortage of revenues; even correcting for population growth and inflation, spending is still at least $15 billion higher per year than when they came to office in 2006.
While positive on the budget overall, the CTF noted the disconcerting trend of corporate welfare and “boutique” tax credits continues, including $100 million on an “Automotive Supplier Innovation Program” and an accelerated capital cost allowance available only to manufacturers.
“The government needs to stop cluttering up the tax code, picking winners and losers, and giving special treatment to some industries but not others,” said Wudrick. “By all means cut taxes - but do it across the board.”
“Overall, this is a good news budget for Canadians,” said Wudrick. “At long last the debt has stopped accumulating for future generations. Their taxes are lower. There is still a long way to go in dealing with the debt, but the government is slowly moving in the right direction. We urge them to tackle it aggressively going forward.”
CTF Federal Director Aaron Wudrick
