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Paul Martin Abandons Lower Tax Agenda

Author: John Williamson 2004/02/01
Ottawa - The Canadian Taxpayers Federation (CTF) reacted to today's Speech from the Throne, which opened the 3rd session of the 37th Parliament and Paul Martin's first legislative sitting since he became prime minister.

"With today's Throne Speech it is obvious that Paul Martin is taking a different approach than his predecessor. Jean Chrétien partially offset new spending with some debt reduction and very modest tax relief," said CTF federal director John Williamson. "But Mr. Martin's priorities made no mention of paying down any of Canada's $510-billion debt or providing Canadians with any tax relief. Instead today's speech signaled Martin's government is committed to more corporate welfare and subsidizing communal activities like volunteerism. He will measure success by how many dollars are spent on social programs and not on outcomes."

Corporate Welfare Set to Take-Off

"The government of Canada should not be in the business of picking winners and losers," said Williamson. "His unrepentant commitment to 19th century interventionist policies will undermine the fundamentals, namely free markets, necessary to grow the economy. So long as the government funds these programs, taxes will remain high to pay for them."

Cities Agenda-More Work Needed

"Mr. Martin made the cities agenda a cornerstone of his leadership campaign, but failed to deliver on his promise to share federal gas taxes with municipalities," noted Williamson. "What is needed, however, is a plan to share 5 cents of federal gas taxes with municipalities. The CTF's municipal roadway trust would do this and ensure accountability, something, which is missing in the government's plan. Mr. Martin does not need to wait for the provinces to act."

One Bright Spot on Democratic Reform

"Here the government appears set to hit a bulls eye. The Throne Speech outlined aggressive action to give Members of Parliament a greater voice in the Commons and establish an independent Ethics Commissioner that will report to Parliament," concluded Williamson.

A Note for our Readers:

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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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