Tuesday, May 02, 2006

Budget 2006

I don't have a link yet. But the conservatives are delivering on the GST cut, keeping the liberals income tax cuts, introducing a $1000 working tax credit (more later), and bringing in the $1,200 baby bonus. Looks good so far.

UPDATE: Here's a good run down.

The BAD: Increasing the lowest tax rate from 15 to 15.5 this year. Scratch that, it will be increased to 15.25 this year, and then 15.5 next year.

Budget Highlights
— A two-year budget
— 29 tax saving measures
— $35-billion in overall spending/tax relief
— $8.67-billion in two years for 1 percentage point GST
— $8-billion surplus
— $3.6-billion for child benefit ($100 a month per child) effective July 1
— $3.3-billion to provinces for post-secondary education, housing and other issues.
— $1.6-billion on community security, border and health
— $1.5-billion for agriculture
— $1.4-billion for policing, border security and public safety
— $1.3-billion for infrastructure
— $1.12-billion in the next two years for defence for recruitment and buying equipment
— $460-million for pandemic preparedness.
— $450-million for aboriginal communities
— $370-million for public transit tax credit
— $200-million for the RCMP
— $250-million a year toward creating 25,000 child care spaces.
— $164-million in funding for the Accountability Act
— $104-million Canadian Strategy for Cancer Control
— $100-million for armed border presence
— $50-million for Canada Council for the Arts
— $520 tax credit on textbooks for full time students
— $500 tax credit for physical fitness
— $500 employment credit on income for work expenses
— $490: the new immigrant landing fee, from $975, effective today.

Look at all the tax credits. The good news is that INDIVIDUALS will keep more of their own money. But think of the flip side. As my boss said a few minutes ago, the message from the government is "behave the way we want you to behave and you will keep more of your money. So, shut up and buy your bus pass."

55 comments:

Farmer Joe said...

Why do they always count tax cuts as new spending?

How much is new spending and how much is being cut? Is that to much to ask of the MSM?

Confused?? said...

Dave, this makes my head hurt. What is the dealio with the 15-15.5, 15.25 thing, and do I get $1000 back on my taxes because I go to work every day?

David MacLean said...

It makes my head hurt. The tax credit situation is absurd.

The libs cut taxes retroactively, so you got a wee break on your 2005 taxes. That rate still stands until July 1, 2006. After that, the rate will be increased to 15.25, and next year 15.5. Why they would do this is a mystery.

The old rate was 16, so you are still ahead, just not as far ahead as you were yesterday.

Anonymous said...

Where's the tax credit for albino lesbians?

David MacLean said...

Good thing I kept my receipt for my purple monkey. The purple monkey tax credit will come in handy.

Anonymous said...

What's wrong with tax breaks for certain groups? Doesn't having a tax break for children under 16 for sports help in the long run reduce our healthcare costs? Using buses and public transport decreases our infrastructure needs and costs as well. I think you might not be looking long term enough when you look at this.

Is the CTF calling for decreases on taxes on cigarettes? This is the same sort of thing I think.

-Todd
http://www.doublecool.com

maryjane said...

ANOTHER $1.5 billion for agriculture?
Haven't we been propping this thing up too long?
Is there no limit to this thing?

Robert McClelland said...

ANOTHER $1.5 billion for agriculture?
Haven't we been propping this thing up too long?
Is there no limit to this thing?


Really. Whatever happened to all that talk about the free market and how businesses should sink or swim on their own?

Farmer Joe said...

When it comes to Ag. the Conservatives are as socialist as they come.

There are all sorts of things they could do to help that wouldn't cost the taxpayers a cent, like gutting the wheat board and supply management.

But nope intervention rules the day.

R.S. Porter said...

Whatever happened to all that talk about the free market and how businesses should sink or swim on their own?

Because of Canada's socialist infusion even our parties on the "right" are hardly free market capitalists. Canadians are used to the entitlement society created like people like you, so, in turn, the Conservative Party gives them what they want. Harper, as a free-market libertarian, had to sell his soul to gain power in Canadian society.

Robert McClelland said...

I have to give credit where it's due. This criticism of the budget by John Williamson is pretty good in that it sticks to the CTF's principles rather than let them shift around like the sands of the desert in order to flog conservatism; as has been the case far to often with the CTF lately.

The only thing I'd argue with is his insistence that more tax cuts for corporations are needed when they're already reaping massive profits and hoarding it.

The other thing I'd argue with is his insistence in continuing to beat on the gun registry. It only costs $15 million/year to administer now so it's not something the CTF should be wasting their time on. And by doing so only tarnishes the organizations credibility by making it into a conservative astroturf organization.

Robert McClelland said...

Actually there's one other criticism I want to make about John's critique of the budget. Why is there no mention of the outrageous increase in military spending? It's going to increase by a whopping 25% or more over the next four years. If that had of happened to any other budgetary item the CTF would be all over it like ticks on a dog.

David MacLean said...

Gasp...YES...I don't think government should be involved in social engineering.

David MacLean said...

You know what, Robert? We don't criticize highway spending either.

maryjane said...

nor do you critcize agricultural spending. But the question, David is, why not?

Sask.Taxpayers federation said...

I don't know if it's a good budget.
The Gov't is talking about some cuts in Gov't spending to cover the tax cuts.I'll wait and see.

Farmer Joe said...

Highways and the Military are core government responsibilities.

I don't want to put words into the CTF's mouth but I don't believe that they are anarchists.

Government plays a necessary role in society but it should not be an all encompasing role.

Farmer Joe said...

And there is nothing outrageous about the increase in military spending it is long overdue.

Our people deserve the best equipment in the world, they have had to make due with pea-shooters and card board box's for way too long.

Anonymous said...

David i'm still waiting for a responce on this agriculture bail out question. What is the Canadian Taxpayers Federation position on our tax dollars going towards proping up the family or corporate farm.

Adam Taylor said...

Drought, Flooding, Border Closures, BSE, West Nile, to name but a few.

We also didn't object to Canada providing relieft for the Tsunami.

You Lefties are cold! hahah.

-Adam

David MacLean said...

I know eh! Let'em freeze in the dark, eh maryjane?

sask.taxpayers federation said...

I see the proposed tax cuts total over 20 billion dollars.Where is this government going to get the money from? I spell a rat. I also smell a deficit. What programs will get the axe? Any ideas?

p.a grizzly said...

STF: Hopefully the program that gets cut is the one that subsidizes you constantly making idiotic comments.

Greg P said...

The libs cut taxes retroactively, so you got a wee break on your 2005 taxes. That rate still stands until July 1, 2006. After that, the rate will be increased to 15.25, and next year 15.5. Why they would do this is a mystery.

Actually, the rate goes up to 15.5% effective July 1st - the 15.25% figure is the average tax rate for all of 2006 (15% until June 30, then 15.5% from July 1 on).

It would have been nice to keep the full Liberal tax cut as well as the balance of the Conservative tax plan (and cut spending accordingly), but it seems that Harper felt the need to reach out to the Leftists.

It is encouraging to see $3b allotted to debt repayment - didn't the Liberal budgets rely on surpluses to pay down any debt?

Anonymous said...

That’s really mature David. You really should try and keep some sort of standards on your site. I really would like to know the Taxpayers Federations position on our family farm receiving money from the government. Adam all business will suffer some adversity over time should the government bail them out too. These are simple questions however if I’m touching a nerve or if this is some sort of hole in the Taxpayers Federations platform I apologize. Perhaps you can direct me to a position paper on this subject.

Robert McClelland said...

You know what, Robert? We don't criticize highway spending either.

Is highway spending going to increase by 25% or more over 4 years?

Highways and the Military are core government responsibilities.

And so is healthcare, the environment, Aboriginal affairs and many other things, Farmer boy. But the question is why is the CTF docily accepting a 25%+ increase to military spending when that flies in the face of everything it "claims" to stand for.

mad hatter said...

I agree with the need to increase military spending.

The bigger issue is how important is the military, what do we want it to do and in turn how big does it need to be to accomplish our goals?

After we make that decision, we then need to provide them adequate protection and equipment to do the job. We can't send them into Afghanistan with quarter inch plating protecting them.

Under the Liberals they wanted a big military but refused to properly equip it. You had a better chance of getting hurt or killed flying in a chinook than by going to Afghanistan.

Make the decision on the size and job you want it to do and then make sure you properly equip it to do the job.

Farmer Joe said...

Sorry Rob but healthcare, the environment, and Aboriginal affairs are 'not' core area's of the governments responsibility.

Those are all things that are perfectly capable of being run on their own.

Armies are a whole other kettle of fish. Highways could be debatable.

Sask.Taxpayers Federation said...

No one on this blog can say whether it's a good budget or not. Time will tell. I just want to know how many civil servants will lose their jobs to pay for it. I don't like to see anyone, private or public lose their job. Not in these times. They should've left the GST where it was and put money in daycare spaces. Other than that I'm a little leary.

Robert McClelland said...

No one on this blog can say whether it's a good budget or not.

It's a bad budget. Not only does it pretty much ignore the huge waste of taxpayer dollars being sucked up by the debt but it also hinders any future government's efforts to deal with the problem.

David MacLean said...

Agreed, we need legislated debt retirement plan. But we don't do that by raising taxes.

Sask.Taxpayers Federation said...

It'll take a year or so for the results of this budget to be really
understood. i don't believe in arming Canada like we're going to war. We're getting just as paranoid as the Americans. We have a great reputation throughout the world. I hope we don't become as hated as the States.

maryjane said...

Let'em freeze in the dark? Not quite, David. Let'em go out and get real jobs. Let'em go to the free market paradise of Alberta. THERE'S A LABOUR SHORTAGE. Let'em get out of the cycle of dependency. Let'em live by the same freemarket philosophy you sanctimoniously preach. You righties are such hypocrites.

Sask.Taxpayers Federation said...

I can't see how we'll have a surplus this year. How big a corporate tax cut is there?

Farmer Joe said...

Forget about going to war, how's about just being able to patrol our borders?

Sask.taxpayers federation said...

How much new money for medicare? I see the farmers are getting a billion dollars. What is the before tax gross income of a grain farmer in Sask with 4 sections of land? A billion dollars is a lot of money.

Farmer Joe said...

That it is, but just like with medicare throwing more money at farmers is not going to solve their problems.

No idea what the gross would be, but the net would no doubt be negative this past year.

Ironically the highest subsidized farmers in Canada are dairy and they don't get their money from taxpayers they get it straight from consumers thanks to tariffs and market price support systems.

According to the OECD figures 50% of their gross income is thanks to this arrangement.

In 2004 the supports for the grain farmers was in the range of 10-15% of gross income.

maryjane said...

Indeed, Farmer Joe, throwing more money at farmers is not going to solve their problems. So why, do you think, the subsidy despising, free-market fundamentalist CTF is so in favor of pissing away other peoples money?

Farmer Joe said...

If that is the impression you have gotten after reading their material maybe it's time for a visit to the optometrist.

You obviously have some kind of a pet peeve against farmers.

None-the-less nobody in Canada has fought harder for responsible government spending than the CTF.

Farmer Joe said...

Maybe if you didn't have such a potty mouth, you'd get some answers.

R.S. Porter said...

Maybe if you didn't have such a potty mouth, you'd get some answers.

Well when you're high, you don't think straight, give 'em a break.

Anonymous said...

I don't have a potty mouth and i don't seem to be able to get any answers.

Farmer Joe said...

Well then look at it this way have you ever heard the CTF advocate in favour of farm subsidies?

P. Brock said...

Silence in their dispersal is a form of advocating.

DS said...

Mr. MacLean,

Why is there only one post for the federal budget? Nothing to bury this time? No posts questioning your organization preceeding it?

Anonymous said...

No I have not. But then I'm not sure I have heard them advocate in favour of any tax sponsored subsidies. I believe that they portray themselves as watch dog of government spending for the average tax payer. However from what I’m reading on this site and taxpayer.com they seem to be doing it from a particular political slant. For example it’s okay to give our tax dollars to the military and to arm the U.S. Canada boarder when we have no real threat to our security however we should stop supporting "special interest groups" like people who advocate on behalf of the poor etc. I guess the more I’m looking into this outfit the more I’m thinking that they should be changing their name so that it accurately reflects where they are coming from. To hide the political agenda by pretending to advocate on behalf of all tax payers is very misleading. My question remains though and that is where does the family farm fit into this political agenda? By your comment you seem to be sujesting that they are not in favour of farm subsidies?

Sask.Taxpayers Federation said...

What was the gross farm income for 2005? This is before taxes if they pay any. I'd like an honest answer which I know I won't get. Our gross household salary last year was 84,000.00. I know damn well that the gross farm income on 3 sections of land was a lot more than that. Any takers?

Sask.Taxpayers Federation said...

I grew up in rural Sask. I have family and friends that farm. I know that alot of farm kids got alot of financial help from their farm parents and still do. This was in the form of land and copius amounts of cash. Farmers are not hard up and broke maybe 10% maybe. I still don't know who to believe. Farmers have been complaining as long as I can remember. I go back to the 6o's. The farmers weren't too bad until the Devine years when the govrnment paid farmers more in relief help than they made farming. Ever since they expect the government ,Local and federal to give them money. My earning power has taken just as big a hit as agriculture. I've had 2% raises per year for the last 25 years. Is that fair? I work an average of 9 hrs a day and get paid for 8. My wife works 10 hrs a day with no overtime,she's in management. I read an article last winter that stated workers in Canada work over 50 hrs a week on average. This is w/o overtime whether union or non union,public or private. What does the farm community have to say about that? Someone told me farming is AAA, April , August, Arizona.

Farmer Joe said...

Well then maybe you should buy a farm sask.taxpayers if you think it is such an easy life.

Farmer Joe said...

Anonymous,can you name one country that is successfully being run without a military or borderguards?

R.S. Porter said...

Is that fair? I work an average of 9 hrs a day and get paid for 8.

That's no one's fault but your own.

What does the farm community have to say about that? Someone told me farming is AAA, April , August, Arizona.

First off, I'm against farm subsidies.

But to your point, you seem to have little comphrension of farming for having grown up in rural Saskatchewan. I'm sure farmer would say to 50 hrs a week, that's pretty easy. Also, what does farmer's gross income have to do with anything?

If you honestly believe that farmers plant in April, harvest in August and vacation the rest of the time, you need to vist a farm during the summer. If they have animals, they don't go anywhere.

Sask.Taxpayers Federation said...

They work seeding,harvest so what do they do in between? I'm talking about grain farmers. Not mixed farming. I've forgotten more about farming than you'll ever know. Just making stupid statements about my working hours tells me you don't have a job. Get one. Farmers are rich or they wouldn't vote tory. Farmers are spoiled brats who don't give a damn about taxpayers. When Harper promises a billion dollars where does the money come from? Not farmers. They don't subsidize themselves. Taxpayers with T-4's like myself pay for it. The farmers don't even thank us peasants. Have you actually lived in Rural Sask? I lived 1/2 my life in Rural Sask. I don't know of any grain farmers that work 50hrs a week. Go to the provincial parks. Look around and count all the 5th wheels. 90% are owned by farmers or former farmers.
You've been sniffin burlap again. If you had farmer income and me too we'd give our money to charity.
You obviously haven't lived in Rural Sask. AAA farming is sarcasm. But mostly true. Maybe change the months.

Farmer Joe said...

I'll type it again, slower this time.

If you think straight grain farmers are on the gravy train go out and buy yourself a couple of thousand acres of land.

The banks will loan you the money if its such a sure fire money maker.

R.S. Porter said...

They work seeding,harvest so what do they do in between?

Not much apparently. Everyone knows once you seed a plant you ignore it for months then come and harvest it. That’s all.

I'm talking about grain farmers. Not mixed farming.

Why do you think it’s okay to ignore a large part of farming? Do you think that farmers only grow one crop? There is great diversity in farming. Even at "grain" farming you don't understand.

I've forgotten more about farming than you'll ever know.

That’s quite the assertion considering you have no idea what my background is. You are showing complete and utter ignorance of farming.

Just making stupid statements about my working hours tells me you don't have a job.

Again, a baseless allegation. You claimed that you work nine hours days without being paid for one of them, whose fault is that? Is it my fault, or anyone else’s, that you choose to work at the job you do. No one is forcing you to work what you do. My statement was not, in any context, stupid. The idea of what is fair doesn’t even matter.

Get one.

Check

Farmers are rich or they wouldn't vote tory.

Your fallacious thinking never ceases to amaze. You’re going to have a little trouble proving every single one of the 5,000,000 plus Conservative voters was rich.

Farmers are spoiled brats who don't give a damn about taxpayers.

Farmers may receive a lot of government subsidies but they are by no means spoiled brats. Do you generalize everything?

When Harper promises a billion dollars where does the money come from? Not farmers. They don't subsidize themselves.

I’ve already established that I don’t believe in farm subsidies. Yet, I didn’t realize that farmers didn’t pay taxes. I think farmers would be happy to know they can stop pay these taxes. It doesn't seem to matter to you that farmers pay income tax and that farmers pay sales tax. Farmers are just like the rest of us. Yes the money comes from you and me as well, that’s how taxes work.

Taxpayers with T-4's like myself pay for it.

Yes you do. And so do farmers.

The farmers don't even thank us peasants.

You do realize that “peasant” means agricultural worker, right?

Have you actually lived in Rural Sask? I lived 1/2 my life in Rural Sask.

No I haven’t. And, from what you’ve stated, I don’t think you have either. If you truly have, it proves that you weren’t paying much attention.

I don't know of any grain farmers that work 50hrs a week.

I don’t think you know any farmers, I’m not completely sure you understand the concept of a farm.

Go to the provincial parks. Look around and count all the 5th wheels. 90% are owned by farmers or former farmers.

90%? Where do you get these statistics? It does not further your cause to make things up. Besides, who says farmers can’t go on holidays? I never said some farmers aren’t rich—but since when does owning an RV make you rich?

You've been sniffin burlap again. If you had farmer income and me too we'd give our money to charity.

Now you’re insulting burlap. As per the second part, I’m not entirely sure what you are trying to say there. Who say’s farmers don’t give to charity?

You obviously haven't lived in Rural Sask. AAA farming is sarcasm. But mostly true. Maybe change the months.

Now you are repeating yourself. You have proved only one thing: you have absolutely no understanding of the economics or life of farming.

As Farmer Joe has pointed out, if farming is such a lucrative deal, why haven’t you purchased farm land and begun raking in the cash?

Sure some farmers are rich. If you own your land and have a good crop you can do well at farming. But to state that all, or even most, farmers are rich, is beyond absurd.

Please just stop.

Sask.taxpayers federation said...

Nothing is easy but I think farmers should get off their bandwagon and quit asking for a handout every time they hit a bump in the road. This was started By Devine in the 80's. He gave farmers money and subsidized mortages for farmers and workers.
When I hear the losses farmers claim it makes me wonder exactly how much money they make. And only farmers can help set up their kids in farming. And only farmers and their kids benefit from handouts.I still get the feeling farmers aren't honest about their financial status. It's a known fact that all handouts are paid for 90% by working peoples taxes.

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