10.16.2008

Deficit looming

Parliament dysfunctional?
It was his control of our cheque book...

It looks like we are headed to a deficit next year and maybe even this year. Now we know why Harper decided to go to an election at this time. He was protecting himself. It wasn't Parliament that was dysfunctional, it was his control of our cheque book that mandated an election.

The Toronto Star is reporting a possible 10 billion dollar shortfall for 2009-10. That would be the first deficit since the mid 90's. Its a good thing we have re-elected Stephen again, because he is Conservative and they are the best at managing our finances, right?!!

We just spent an election where Harper and Dion were hell bent on beating each other to cut more taxes and layton was going to spend it all. In each case the Liberals and Conservatives said they would not run a deficit, but would go ahead with the tax cuts worth about 50 billion dolllars.

Layton said he would not run a deficit either. So all three said we won't go into the red. If the Conservatives go ahead with the promised tax cuts to business, where will the new income come from? Will it generate more revenue because of the good old trickle down trick? And if it doesn't trickle down what will Harper cut from spending to avoid a deficit?

The same question goes to Dion and or whoever the next Liberal leader is, what will you cut? I expect the Liberals might put on a slightly more progressive face on their cuts but it would not be pretty. Would the Liberals still go ahead with refunding the court challenges program? Would they still reinstate funding that was cut from HIV/AIDS funding, will they still implement fully the Kelowna accord?

And the NDP and Jack, would they still go ahead with a national pharmacare program, Childcare, and court challenges program and the Kelowna Accord if facing a deficit? What would they cut and would they cut some taxes for business or would they leave them where they are?

If you believe any of the leaders, they would do almost anything to avoid a deficit. That said, how the heck would they do it? We are facing a deficit, we are in the middle of an international financial crunch. Families are worried about being robbed of their pensions and savings.

We are in the potential hole at this time due to some decisions made by our current government. They have cut many sources of government revenue. The GST has been cut twice, eliminating 10 billion dollars annually. I can not estimate how much they have cut taxes in other areas readily as i write this.

The next few months will be critical because its important we avoid a deficit less we fall into the trap of doing so regularily. I can hardly wait to see the discussions and Parliament coming together as one to agree.

ok i admit, im feeling a lil silly right now...

2 comments:

West End Bob said...

I can hardly wait to see the discussions and Parliament coming together as one to agree.

Yeah, me too. In the meantime, I need to start knitting the sweater for Sasquatch and read "War and Peace". The leaders were all promising programs they knew full well they couldn't deliver.

Politics as usual . . . .

Rick Barnes said...

I hope its not a blues sweater vest!