CTF slams increased spending, corporate welfare

Supports job creating business tax relief

OTTAWA: The Canadian Taxpayers Federation (CTF) gave a mixed reaction to today’s federal budget. While rightfully withstanding opposition calls to hike business taxes, Budget 2011 increases spending and continues to project deficits into 2015-16. 

“This budget fails to control spending and get serious about the deficit,” said CTF national research director and acting federal director, Derek Fildebrandt. “Rather than return program spending to pre-recession levels, spending will continue to increase by an average of 2% over the next five years. That’s not austerity. That’s a permanent increase in the size of government.”

Turning towards business taxes, Fildebrandt was supportive, “The government should be commended for standing up to irresponsible calls from the opposition to undo job-creating business tax relief. Unfortunately, this positive policy is eroded by continuing to dole out more corporate welfare.”

Finance is reporting a deficit $4.9 billion smaller than was projected in the fall Update, of which three-fifths ($2.9 billion) is due to increased revenue while only two-fifths ($2 billion) is due to lower than projected spending. Responding, Fildebrandt said, “Any lower-than projected deficit figure is welcome news for taxpayers, but this is a drop in the proverbial bucket of a $40.4 billion annual deficit.”

“Next year, the federal debt alone will continue to spiral upwards at $81.1 million a day while the government makes only vague promises of program reviews,” added Fildebrandt.

Concluding, Fildebrandt stated, “Three fiscal-quarters in a modest recession does not justify six years of deficits and a massive increase in the size of government.”

For more information please contact:

Acting Federal Director/National Research Director Derek Fildebrandt at: 1-800-265-0442 (office), 613-794-6554 (mobile) or [email protected]