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Responses to Federal Debt Update

Author: Lee Harding 2010/02/26

Many responded to our action update on federal debt that was emailed yesterday. Some addressed their comments to us, while others cc'd us on their message for Jim Flaherty. Some of those messages follow.

Some have said the threat of an opposition coalition is what is driving this deficit spending. Whether this is true or not makes little difference as to how taxpayers should respond. Parties want to get elected and pay attention to what voters want. If voters send a clear message that they want balanced budgets, parties of all stripes pay attention. Every political party committed to balanced budgets in the last federal election and threw out all those convictions less than two months later. This should not be forgotten.

Regardless of what political stripe holds power, taxpayers need to tell government and opposition MPs and MLAs that deep deficit budgets are unacceptable. Inevitably, the bill will come in--with interest. We and the next generation will pay for it dearly.

I also took the liberty of answering a few questions we were asked. My answers are italicized.


**UPDATE** Bonus near the end: the standard letter Flaherty's office sends back!



Sincere thanks for forwarding this – I found it most interesting and quite frankly frightening.

Darrell

You're welcome. Thanks for the encouragement!


Do you have many members with Facebook accounts? It's  great way to spread videos around.

Chris

Yes we do, Chris. Our fan page is at http://www.facebook.com/pages/Canadian-Taxpayers-Federation/6095483909. Our group page is at http://www.facebook.com/pages/Canadian-Taxpayers-Federation/6095483909. There are more than 500 members of each. Please invite your friends to join us!



Who did they "borrow" from?
Was the borrowed money real or created from thin air?
If the latter then it really isn't a debt, it's a myth
Time you told the truth
Robert

Not hiding anything here, Robert. We answered this question a month ago at http://www.taxpayer.com/blog/20-01-2010/whom-canadas-debt-owed.


I just have a question. Do you believe the current government will continue to raise taxes? Will we, at some point, be paying high taxes such as Britain and Sweden? I don't it to get to the point where Canadians are seeing 80% of their income gone in taxes.
The birth rate is low now. Raise taxes higher and people will have even fewer children.
I, for one, would consider immigrating to another country. It's a bad situation all around.

Chris

Our federal director Kevin Gaudet has said that deficit budgets are simply deferred tax increases. That's why it's so important that budgets get balanced--and soon!


Hi guys, I have forwarded this e-mail to many with my opinion attached. "Conservative parties...always led by liberal's, in sheep's clothing!"
The Canadian government is doing this for one reason I believe, to try and maintain an exchange rate that will not hinder exports. Its a crime.
My life's endeavors have relied on exports yet I have always yearned for a high Canadian dollar. Why should we give away our wealth...and spend the proceeds on imports?

Wayne


If it is your intention to make Jean Chretin look good, do not expect me to sign your petition.
The five year freeze was instiuted against the RCMP, Canadian Forces, and the Public Service.
I was forced to remortgage my house twice during that period.
That five years totally affect the best six years of my pension to the tune of $3500.00 per year.
The $330,000,000.00 the members of the RCMP saved the government was a reward of a 2.75% wage increase.
 
Sincerely,
 
Mel

Our purpose is to motivate the government to return to balanced budgets, not to credit or discredit politicians.


thanks for the email, i really appreciate the information and plan on taking action.
 
I do have a question for you though, what is your stance on currency creation being in the hands of private central banks and not the canadian people?  a major percentage of our income tax goes to pay the interest on national debt to private central bankers.  I think in 2008 it was $33 billion.  No doubt with all the bailouts and sitmulas and deficits that number is sure to skyrocket, i don't see anything other than tax hikes and cutting of social programs in the near future.
 
what do you think?

Kelly

This aspect of central banks is not something we have addressed. However, this this Glenn Beck video on U.S. currency devaluation through deficit spending is worth the watch. Certainly this deficit spending, that burdens more than "stimulates" the economy, will require a correction of some kind--the sooner the better.

No doubt you are getting lots of these...all I can say is, Ho Hum!
Margaret

----- Original Message -----
To: xxxx@xxxx
Sent: Friday, February 26, 2010 9:10 AM
Subject: Your correspondence regarding Budget 2010
Thank you for your correspondence, and for taking the time to provide your views and recommendations for Budget 2010.  Your participation in the pre-budget consultation process is appreciated, and I can assure you that your suggestions will be reviewed as we move forward.
Given the ongoing weakness of the global economy, our Government’s immediate priority is to stay on course and fully implement Canada’s Economic Action Plan.  A plan that is helping Canadians, while securing the emerging economic recovery.  Specifically, this means:
  • Lowering taxes for Canadians and Canadian businesses;
  • Improving Employment Insurance benefits to help those in need;
  • Modernizing federal infrastructure to better serve Canadians;
  • Investing in higher education, science and technology to create the economy of tomorrow;
  • Providing assistance to sectors and communities most seriously affected by the economic downturn; and
  • Making available extraordinary support to improve access to financing.
Our Government will stay the course, and continue to work to ensure a disciplined approach to fiscal planning.  Once the economic recovery is secure, our Government will begin the return to balanced budgets.
As Canada’s Economic Action Plan is a 2-year plan, significant ongoing financial commitments are already in place.  As a result, all new investments must be aligned with our objective of a return to balanced budgets.  We will follow through on the exit strategy built into the plan, by ensuring that the temporary measures in the plan end as scheduled.  As well, we have committed to keeping taxes low, while protecting the growth track of major transfers to support seniors, children, and provincial and territorial governments.
Spending growth on direct program spending – the component of total program spending which the Government of Canada has the greatest control over – will be restrained as necessary as we transition back to balanced budgets.
Our Government will provide Canadians with an update to its economic and fiscal projections in Budget 2010.
Again, thank you for writing and contributing to the federal budget planning process.
       
Sincerely,
James M. Flaherty


Please don't be so stupid , we are in a recession.
 
If you can't see they had no choice, please don't bother me any more.
Joan
In the spectrum of choices, there are many less fiscally damaging than a $55 million deficit.
Regarding our stance, it might be helpful for you to understand that with all the voices telling the government to spend more there is barely any counterbalance to that apart from the CTF. Without this counterbalance government deficit spending would be any worse.

You are always free to unsubscribe, and that "manage your subscription" link is at the bottom of every update email. However, it would be discouraging to have you unsubscribe on a single issue. We take a stance on a variety of issues, and given the wide swath of supporters we have, it is not expected that every supporter would agree on every single issue.

Remember this is a minority government so some of the blame for the current spending strategy is applicable to the Liberals, NDP, and Block Quebecois.  
Please include the leaders and finance dept critics in this memo and retrurn it to me.
 
Thanks
Dale
This is a very good point, Dale. ALL parties must know that Canadians care about balanced budgets. Contact information for our political leaders can be found at the bottom of this page: http://www.taxpayer.com/node/10951. Finance critics follow below:
Liberal Finance Critic John McCallum
House of Commons, Room 209 Justice Building
Ottawa, Ontario K1A 0A6
Tel: 613 996-3374 / Fax: 613 992-3921/  Email: [email protected].
New Democrat Finance Critic Thomas Mulcair
House of Commons, Ottawa, Ontario K1A 0A6
Telephone: 613-995-7691
Fax: 613-995-0114
E-Mail: [email protected]
Bloc Quebecois Finance Critic Jean-Yves Laforest
House of Commons, Ottawa, ON K1A 0A6
Telephone: 613-995-4895 / 613-996-6883 / Email: [email protected]

Thank you, for your leadership....we will do our best.

Pete

The $15,000 plus we owe, is that per taxpayer or citizen?
 
Joan & Al
This is per capita (citizen): $511 billion divided by 33 million.

For the 75% of us who DO NOT have PENSIONS, Income Trusts remain number one issue. The Marshall Savings Plan should be your number two issue.
 
Then reducing individuals taxes and raising the taxes on wealthy people and corporations.
 
They have way too many tax deductions and end up paying little or no taxes.
 
Then reduce MP's pensions benefits etc same for govt employees.
 
Reduce the size of govt.
 
Why so silent on the income trust fraud. There was no tax leakage but there sure is now.
 
Peter
We have talked about income trusts numerous times, as this search shows. We also contend that the income tax code must be drastically simplified (meaning less loopholes) and the rates lowered for all, as our Lower, Simpler, Flatter report shows. In pre-deficit times, we also supported the move towards lower corporate income taxes. We would love to see that continue, though ending these killer deficits is a higher priority. As well, we completely agree that the size of government should be reduced and that MP and public employee defined-benefit pension plans should be eliminated.

What do you think of a Robin Hood Tax?
Michael
If this is STEALING from the rich to give to the poor, the question remains why the government has to STEAL from anybody. Quite simply, the government must reduce spending.


This is what I am going to say to Flaherty.
"I agree with everything the Canadian Taxpayers Federation advocates except the 30% decrease in Provincial Equilization because that may mean more cuts to health care.  The Feds should never have agreed to funding these unnecessary Recreation Centres that municipalities are building as part of the stimulus spending package.  If they wanted to fund buildings, they should have funded seniors housing and geared-to-income seniors apartments.  They need to cut military spending, get out of that war and cut funding to foreign countries.  NOT RAISE OUR TAXES, NOR CUT OUR HEALTH CARE.  Our taxes should be lowered and our health care increased to cover necessary dental and pain relief such as physiotherapy and massage therapy.  Foreigners do not pay Canadian taxes, nor do they vote so I do not understand why Harper has to promise our money to them".
 
Thanks for keeping me informed.  I am a low income retiree so cannot afford to support you financially but do appreciate your email updates.
Hillary


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