Manley Economic Statement... Heavy on Data, Light on Direction
Finance Minister fails to rein in program spending
Canadian personal income tax burden still highest in G-7
Debt reduction done on the backs of Canadian workers and employers
OTTAWA: The Canadian Taxpayers Federation (CTF) has responded to the Economic and Fiscal Update delivered this morning by Finance Minister John Manley before the House of Commons Finance Committee in Ottawa.
Federal spending track is unsustainable
" The updated numbers revealed today by Mr. Manley combined with past spending growth, confirm an alarming and unsustainable trend in program spending which started in 1997 and is projected to spiral upward until the end of the decade," said CTF federal director Walter Robinson.
"Program spending is up 39% in seven years and is projected to jump 74% over 12 years through to 2009, and this is before Paul Martin's on-the-record big spending promises are added to this tally," added Robinson. "This spending track dwarfs the combined historic and projected rate of inflation and population growth - it is mathematically unsustainable."
Canadians still languish under punishing personal income tax burden
" Over the last decade and looking ahead, it is clear that Ottawa has become and will become even more reliant on personal income tax collections to feed its spending addiction," noted Robinson. "The government's own numbers contradict the government's great 2000 tax cuts hype. When one measures the increasing contribution of federal income taxes to total government revenues, the feds will continue to tax hard work and wealth creation to fund a litany of spending commitments."
Robinson added: "After a decade of the Chretien administration, our personal income tax burden as a percentage of the GDP is unchanged. So much for the era of tax cuts."
Debt reduction on the backs of workers and employers
" While we acknowledge the reduction of our federal debt by $56 billion, this is mostly due to high Employment Insurance premiums which have over-taxed workers and employers to the tune of $45 billion and counting since the federal budget was balanced," concluded Robinson. "Job killing payroll taxes have reduced our debt, not federal leadership."