Ottawa to Trim Some Fat & Ideological Programs
Author:
John Williamson
2006/09/24
Program Spending Down $1.1-Billion - First Decline in 9 Years
Structural Over-Taxation Results in $13.2-Billion Surplus
Ottawa: The Canadian Taxpayers Federation (CTF) reacted today to the announcement that the federal government's surplus for the last fiscal year (2005/06) will be $13.2-billion, up significantly from the $8.0-billion forecast by Finance Minister Jim Flaherty in the May budget. The surplus money will be used to reduce Canada's debt, bringing it down to $481.5-billion. One reason for the larger surplus is that program spending was cut by $1.1-billion from the previous year. Mr. Flaherty and Treasury Board President John Baird also identified budget cuts totaling $1-billion over the next two years (fiscal years 2006/07 & 2007/08).
Budget Cuts Welcome, but Tax Relief and Additional Spending Reductions Needed -
"The majority of Canadians will applaud the government's plan to pay down the federal debt and a $1-billion spending cut to some awful programs, like Technology Partnerships Canada, a corporate welfare boondoggle, and the Court Challenges Program, which paid tax dollars to the lawyers of special interest groups to fight government legislation in court," said CTF federal director John Williamson. "But hold the champagne. Government spending restraint is not the cause of today's big surplus announcement. Rather it is structural over-taxation by Ottawa that has created massive government surpluses. These surpluses existed under the Liberal regime and they continue under the Conservative government."
"The federal government should collect in taxes only what is needed to fund its spending priorities. Annual surpluses represent over-taxation by government and the money should go back to taxpayers in the form of lower income taxes. Taxpayers will consider the 2007 Budget a failure if it does not offer Canadians broad-based income tax cuts," said Williamson. "The 2006 Budget reduced some taxes, the one-point GST cut for example, but the tax relief was not nearly as dramatic as the Conservative government would like voters to believe. It is time to cut personal income taxes."
"The spending cuts are welcome, but more reductions are necessary. A $1-billion trim is approximately half of one per cent of Ottawa's program spending. In future years the Conservative government must ensure program spending is kept down and does not gallop ahead," noted Williamson. "Still, it is encouraging that Messrs. Flaherty and Baird have taken steps to reduce funding to special interest groups and cut programs out of whack with the priorities of the new government, such as eliminating the Canadian Identity Grant and Contribution Program as well as the Medical Marijuana Research Program."