Putting a Price Tag on Paul Martin's Throne Speech Spending Priorities
Author:
John Williamson
2004/10/04
Ottawa - The Canadian Taxpayers Federation (CTF) reacted to today's Speech from the Throne, which outlined Paul Martin's policy agenda as Prime Minister of a minority government.
"Today's Throne Speech sounded more like a re-election plan than a responsible policy agenda to win support in our minority Parliament and find a middle ground acceptable to Canadians," said CTF federal director John Williamson. "Prime Minister Paul Martin has re-hashed the promises he made in the last election, which failed to secure his party a majority or a clear mandate, by outlining one spending initiative after another. Yet he failed to simultaneously address the need for Ottawa to reduce the tax burden paid by Canadian families, a policy that millions of voters support."
Spending Projections:
"According to Budget 2004, total government spending was to be $183-billion this year, but that figure will jump to $195-billion next year should Mr. Martin's election and post-election spending initiatives come to pass," observed Williamson. "Spending will continue to increase at an alarming rate, total $202-billion in 2006, rise to $210-billion in 2007, and reach almost $220-billion in 2008. All said, spending will increase by $36-billion over the next five years, and top $90-billion in a decade."
No Tax Relief for Canadians:
"Tax relief is not part of Paul Martin's agenda as the Throne Speech made no provisions for even modest tax relief," said Williamson. "Be it reducing personal income taxes, improving Canada's productivity with lower taxes on businesses, lowering Employment Insurance payroll taxes, or simply cutting Ottawa's gas taxes to help motorists, he offered taxpayers nothing here."
Corporate Welfare Set to Take-Off:
"The government of Canada should not be in the business of picking winners and losers," said Williamson. "Yet the Martin government is committed to injecting itself into every segment of the economy with more business subsidies that will continue to undermine the fundamentals necessary to grow the economy. So long as the government funds corporate welfare programs, taxes will remain high to pay for them."
Cities Agenda-Another Missed Opportunity:
"Mr. Martin made the cities agenda a cornerstone of his leadership campaign and his party's election campaign, but again he failed to deliver on his promise to share federal gas taxes with municipalities," noted Williamson. "For the past three years the CTF has advocated its municipal roadway trust model, a policy which would get gas revenues into the hands of cities. We will continue to press this issue."