Balanced Federal Budget Sets Stage for Serious Tax Cuts in 2015

• Budget 2014-15 is likely balanced when $3 billion 'revenue adjustment for risk' is included - total spending to fall by $1.3 billion from year previous
• Including risk adjustments, Budget 2014 forecasts $30 billion surplus over five years
• Employment Insurance taxes to outpace EI benefits by $14.1 billion in next three years
• Annual spending to rise $42.9 billion or 15 per cent by 2018-19

“We’re pleased and encouraged that Stephen Harper and Jim Flaherty are on track to keep their election promise and balance the budget in 2014-15,” said CTF Federal Director Gregory Thomas. “The challenge facing all parties and leaders now is to return the projected $30 billion surplus to Canadian taxpayers over the next five years, by paying down debt and reversing EI payroll tax hikes,” Thomas added.

The government has hiked maximum EI taxes 28 per cent since the 2008 financial meltdown. The 2014 budget forecasts EI premium revenue to surpass benefits by $14.1 billion over the next three years. “Canadians would rather see more money on their paycheque than see $20 million frittered away on snowmobile trails and boutique tax credits,” said Thomas. The CTF slammed $500 million in additional spending on the Automobile Innovation Fund. “Taxpayers shouldn’t be giving millions to pad the bottom lines of these global auto makers,” said Candice Malcolm, CTF Ontario Director. “Chrysler, Ford, GM, Toyota, Honda and others should all fund their R&D from the billions they book in profits.” “Stephen Harper promised tax relief once the budget was balanced. Canadians have been very patient,” said Thomas. “It’s time for the Prime Minister to deliver on his election promise and deliver tax cuts and bigger paycheques to Canadians.” For more information please contact: Federal Director Gregory Thomas at: gthomas@taxpayer.com