-- CTF Responds to Economic Statement and Budget Update --

OTTAWA: The Canadian Taxpayers Federation (CTF) today responded to the Economic Statement and Budget Update that was tabled by Finance Minister Paul Martin in the House of Commons shortly after 3pm.

Tax Cuts

"The Minister has responded again to our demands for further and accelerated tax cuts. Indeed, he has implemented several of our recommendations including: lowering the low and middle income tax brackets; redefining high income as over $100,000; eliminating the 5% surtax; and cutting capital gains taxes." noted CTF federal director Walter Robinson. "In addition, setting out a more concrete timetable for the reduction of corporate taxes is welcome and should enhance our long-term prosperity and competitiveness."

Debt Reduction

"On debt reduction, the Minister's commitment - which is laudable - to paying down $10 billion this year alone echoes our demands," added Robinson. "However, neither the Liberals nor the Alliance have adopted our aggressive three-stage plan of fixed debt reduction amounts (9% of annual PIT collections), a contingency reserve of $3 billion minimum and allocation of all surplus revenues to debt reduction. This is regrettable."

Fuel Tax Relief

"If there is one area where the Minister fails, and fails miserably, it is on the issue of fuel taxes," stressed Robinson. "One-time relief for low-income Canadians is just that, one-time relief. Actual federal excise (gas tax) cuts would be more permanent. Moreover, this relief does not address the needs of Canada's truckers and farmers who both consume massive amounts of fuel. Their burden is still unsustainable."

Program Spending

"While we have a national agreement on increases in health care funding, we are still fundamentally concerned that the government, and the opposition parties for that matter, believe the problem is solved," said Robinson. "Throwing billions at health care still does not address long-term demographic, technological, pharmaceutical or utilization cost pressures. Until Canadians are engaged in a national debate and the Canada Health Act is modernized, we've merely filled the ambulance up with gas, the patient is still in critical condition."

The Bottom Line

"While many measures in today's budget update are favourable, they will all die on the order paper this Sunday once the election is called," concluded Robinson. "What we have here today is Chapter 1 of Liberal Red Book, Volume 3. It's now time for the voters to decide. Do they like the Liberal fiscal record and plan, or is it time for a change In just over 40 days, Canadians will have the opportunity to answer this question."