Responses:

The delusions of equality
Globe and Mail
Nov 2, 2007
RICK SALUTIN

…. Take this week’s federal mini-budget. It’s all about tax cuts and nothing else. If you’ve got no money, tax cuts won’t help you. If you’ve got lots, they will. For the diminishing middle, they won’t help nearly as much as actual items that can be provided only by social investment: schools, child care, transportation, clean air etc. It’s all about those who have, and those who don’t. Have wealth and have power….

—–

CCPA: tax cuts are not the solution
Canadians are concerned about growing inequality and they want their government to do something about it
Canadian Centre for Policy Alternatives
November 1, 2007

The radical tax cut and debt repayment plan announced in this week’s Economic Statement does nothing to address the serious problems facing the country, the Alternative Federal Budget coalition says.

“Tax cuts will not do anything to help skyrocketing drug costs, our crumbling municipal infrastructure, nor provide clean drinking water on First Nations’ reserves. They will not create affordable childcare spaces, build affordable housing, lower tuition fees, nor reduce greenhouse gases,” says Bruce Campbell, Executive Director of the Canadian Centre for Policy Alternatives (CCPA).

Canadians are concerned about growing inequality and they want their government to do something about it. These tax cuts will do nothing to address the growing gap between the rich and the rest of us — in fact they will only make it worse.

“New research from Statistics Canada shows that tax cuts over the past ten years have overwhelmingly benefited only a very small proportion of the population at the top of the income scale. There is no reason to believe that this round of tax cuts will be any different,” says Marc Lee, Senior Economist with the CCPA.

“Blowing today’s surplus on tax cuts and debt repayment could easily turn future surpluses into deficits when the long-anticipated economic downturn arrives, setting the stage for further cuts to public services,” says Lee.

Tax cuts are close to the bottom of Canadians’ list of priorities when compared to education, health care and other public policy choices. The Alternative Federal Budget believes that surpluses should be invested in social and environmental programs and public services.

The main beneficiaries of the corporate tax cut are large financial institutions and the energy sector. These tax cuts do nothing substantive to address the current crisis in manufacturing.

To look at the Economic Statement, you’d never know that Canadian cities are in a state of financial crisis, because there’s nothing in it for them. You’d never know that there’s a consensus in this country that we have to start investing again in our public infrastructure, because there’s nothing in it to address the issue.

“You’d never know Canadians’ number one priority is action on climate change because the Federal Government hasn’t invested a dime in public transit or energy conservation,” says Hugh Mackenzie, Research Associate with the CCPA.

“Far from standing up for Canadians, this government is turning its back on them,” says Campbell.

—–

Georgetti on mini-budget: “The Government has abandoned working families”
Canadian Labour Congress
October 31, 2007

…. “When fully implemented, the proposed giveaway on corporate taxes would exceed the total resources needed to deliver on child care, on a national prescription drug program, on a commitment to upgrade transportation and urban infrastructure. Indeed, these would altogether require less than the current and projected surpluses,” explains Georgetti who adds: “Whose side are they on? That’s the question for working families.”

“Each time such measures are adopted, access to child care, education and training, prescription drugs or retirement security become incrementally more difficult for working families.”

—–

Business applauds tax cuts; others say mini-budget ignores them
CBC.CA News
October 31, 2007

Business groups generally gave a “thumbs up” to the tax cuts spelled out in the Conservatives’ economic update, saying they were long overdue. But big cities and aboriginal groups wondered why there was no money for them and unions said there was little for working families….

The Federation of Canadian Municipalities said the economic statement shows that the federal government “obviously has room to cut taxes” and apply the savings toward Canada’s cities. So it’s wondering why it didn’t.

“Even after all the debt payments and tax cuts announced today, the government will still have $26 billion more than it needs over the next five years,” said Gord Steeves, the federation’s president….

The Assembly of First Nations said the federal books show there’s plenty of money to allow Ottawa to work with First Nations to eradicate poverty.

“Due to inflation and population growth, First Nations are losing real purchasing power each year,” said AFN National Chief Phil Fontaine. “All of this happens in spite of Canada’s record surpluses.”

The Canadian Union of Public Employees said the extra tax cuts won’t help most Canadians.

“The finance minister is trying to pump up what soon could be a flagging economy with costly tax cuts,” said CUPE economist Toby Sanger. “It may help them to buy a spring election, but it will do little to improve the long-term health or productivity of the economy and could lead to deficits and deep cuts to public services in future years.”

“The government has abandoned working families,” said Ken Georgetti, president of the Canadian Labour Congress, who accused Ottawa of engaging in “trickle-down” economics.

“When fully implemented, the proposed giveaway on corporate taxes would exceed the total resources needed to deliver on child care, on a national prescription drug program, on a commitment to upgrade transportation and urban infrastructure,” he said….