The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
The January 27 budget was the most anticipated one in Canada's history according to a lot of media types who continue to preach nothing but negativism about our economy. With jobs being shed in manufacturing and the oil patch, it is no wonder that these and related businesses are crying for help as the recession in the United States spreads. It should be no surprise as our economy is heavily linked to America, especially in Ontario, with over 100,000 jobs lost nationwide in the past 60 days. But compare this to the US, with half a million full-time jobs lost in December alone, causing President Obama to ask Congress for nearly a trillion dollars in tax cuts and incentives to business, which really means the US will never get out of debt in the foreseeable future. Economic experts could hardly agree on the best steps for Ottawa to take, but a lot say that tax cuts should not be temporary, as they do not work except in the short run. A good example is Ontario's cut in the provincial sales tax a few years ago, which spurred people to buy goods now, but the yearly sales were the same, especially in the auto industry. Others are now saying another GST cut may help the economy, but it would also cut government revenue and add to the deficit. Prime Minister Harper earlier promised the new budget would be huge and comprehensive. What was very different in this budget was the number of meetings held with the opposition, business leaders and provincial leaders to get their input on what was needed. Harper met with the Liberal leader and welcomed his input in spite of the negativism of John McCallum and Scott Brison, the supposed Liberal financial experts. Michael Ignatieff was fairly coy, claiming he would not give Harper too much help as he is leader of the opposition and it is not his budget. Doesn't this sound like a Harvard professor? Harper was optimistic prior to the budget that Ignatieff would like what he saw in the spending package, but was regretful that the Liberal leader had not given more input. The reality of this budget comes down to what Jimmy Durante said: "Everybody is getting into the act." National native Chief Phil Fontaine boldly asked for $8 billion, a number of charities put out ads asking for further tax breaks for donors and so on. A columnist even suggested that all MPs set an example and take a pay cut. When, in an unprecedented, move the government released news there would be a deficit of $68 million over two years, the Canadian Centre for Policy Alternatives, a left-wing group (but not identified by the media as such) said it was not enough. McCallum continued the tired argument that the GST should not have been cut. The budget was heavily reported by the media, and criticized and praised to death by politicians and economic experts, as it had something for everyone including an $85 billion deficit over five years, which some experts say is not too bad considering the disastrous effect on a lot of our fellow G7 countries. The head of an eastern business college said, "If you are going to be in a recession, you are better off in Canada.' He claims the banking system is sound and the government stimulus may help a lot. He also praised the extension of EI benefits by five weeks, the assistance in retraining workers and the new tax cuts. Ignatieff blasted the budget then said there were enough good things in it and offered his party's support as long as regular economic updates are given, a condition the government quickly agreed to. NDP leader Jack Layton was visibly hostile to the budget and to the Liberals' dashing of the coalition, which Ignatieff said was dead. What's good in the budget? Most certainly the home renovation plan, which should encourage Canadians to go ahead with home and cottage renovations. Spend over $1,000 and get 15 per cent back up to $10K, but only until February 2010. Also, the tax cuts for low and middle income people should help, as should new help for first-time home buyers, including a tax rebate. There is also $1.4 billion to build schools and improve housing and drinking water on reserves. Indeed, something for everyone. As one commentator said: "Now we know what Harper's hidden agenda is. He's a Liberal!" Roger's Right Corner runs Wednesdays.
