Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
The Liberals promised a budget that would create small deficits and focus on infrastructure to kick start the economy - instead we are getting massive new spending on programs that will make it very hard to ever return to a balanced budget without large tax increases.

Some here have pointed out that the size of the deficit is not that much different from the 2009-2012 days; while that is true the structure of that deficit is much different. In the aftermath of the financial crises there was a big drop in revenue; which combined with short term stimulus resulted in what could reasonably be defended as a temporary deficit.

There is no such defense for this budget. While the Canadian economy is not performing well; tax revenues have been reasonably steady - the deficit is now the result in new program spending; such as reducing the OAS age and the restructuring of the child benefits. The cost of the these programs will continue - and unless tax revenues are increased (and unless the economy returns to a 5%+ growth level) - this will require increases in tax rates. The alternative is that we continue with these $30B+ deficits annually until the Debt/GDP ratio becomes unstable.

It is somewhat ironic (tragic) that it was the Liberals that got us out of the debt trap; but is unfortunately the same Liberals who are getting us caught back in it.

tecmo
...
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.