Are tax rates going to drop?
By Gordon Powers, Sympatico / MSN Finance
After closing Parliament’s doors to avoid almost certain defeat, Prime Minister Stephen Harper is doing his level best to avoid another confrontation with the opposition parties. With the NDP and Bloc Quebecois expected to vote against Tuesday's budget, and the Liberals sitting on the fence until at least Wednesday, his ministers have been given leave to officially ‘leak’ big chunks of the Tory plan.
After weekend announcements of at least $1.5-billion in new training funds for laid-off workers, and a further $2-billion in budget cash to build and refurbish public housing units, it was Transport Minister John Baird who got to hand out the goodies this morning.
$4-billion will be spent over two next years paving roads and fixing aging sewers, Baird says. The government also plans to spend a further $2-billion to improve maintenance at colleges and universities, as well as $1-billion for a Green infrastructure fund.
Much of this is the result of lengthy consultations with the provinces — and that’s new. The question is whether the government has been listening to anybody else?
The Vancouver-based Fraser Institute, for instance, has been calling for a reduction in the middle two income tax rates (22 percent and 26 percent) and the top rate (29 percent) by one percentage point in each of the next two years; a drop in the general corporate income tax rate to the small business rate of 11 percent, and the elimination of capital gains tax altogether.
That would certainly be a good start.
Posted by: terry | Jan 26, 2022 8:22:18 PM
1.5 billion for training funds for laid off workers...Train them to do what may I ask? most laid off people thought that they had established a career, more money down the drain as i see it. Some of these people will take the training to keep them on UIC..then when a job comes available,a job they are more suited,they will go to work,leaving the training..and taxpayers money in the dust! Great for so called schools like the 2 month insurance course..Cost..$10.000 somebody gets rich, but not the workin man..and so the story goes.
Posted by: chris | Jan 26, 2022 9:47:22 PM
first of all i am on ei cause of layoffs in the auto sector....i never had an opporitunity to establish a career unless factory work is one. but the one thing u are not understanding is once a person is excepted into training the rules are u have to complete it and have good attendance or u pay back the money that was spent into it. alot of people out there need to realize that all these people have paid into taxes for years and probably more then most in other "careers". but yet people seem to come down on these people harder...honestly if the auto sector does not survive and everyone is laid off in the end whos going to pick up the taxes that are not being paid into the government
Posted by: master_snow | Jan 27, 2022 7:30:16 AM
I think training is a great idea, alot of people never had the chance to have training for a job that they would have liked to do, because alot of us coudn't afford schooling, so we had to take what we could get, to support our familys!
Posted by: Doomsday | Jan 27, 2022 7:36:48 AM
Well first let me start off by saying 2 billion won't be enough if the auto industry goes into the toilet but that won't happen
The 2 billion is enough for now and a good thing I am definately not pro Harper btw but living in Niagara and seeing a lot of economic cut backs and and other manufactoring closing its Doors it is going to hurt this area over the short term and a lot of the unfortunate workers being let go are not trained to do anything else will Hopefully take advantage of this
because in the long run the more people on welfare the less people paying taxes and more people taxing the system.
So anything to get a worker back to work is definately a good thing and at 2 billion very cheap!!!
Posted by: Tim McTaggart | Jan 27, 2022 1:20:36 PM
All this crying and whining for the automakers like the whole economy will tank if they go under. They couldn't handle their own money how are they going to handle money from the government? 10 years down the road they'll be whining again for relief from having to pay back this money. The automakers and all other greedy unions are the main reason behind inflation. Tighten your belts and manage you companies better or go under. What makes them so special in comparison to all other employers who are struggling?
Posted by: Ken | Jan 27, 2022 1:49:35 PM
All this crying to help out large "international" manufacturers (GM, Ford, Chrysler, etc.) We should let them collapse and rebuild. This would surely allow for renogiation with CAW and UAW to make the respective corporations more efficient. Large car manufacturers will not just stop and go away. Its called restructuring. Oil giants also need to tap into their own reserves (Cash) not ours. Recovery through the pump over a number of years. It is not necessary to maintain the status quo during this difficult time. Any help to corporations MUST be accounted for how spent and paid back over a period of time. A political windfall to Harper to stimulate the economy is to not tax any Canada Pension Plan payments, thus putting a lot more disposable income in the hands of seniors who rely on this pension as the fundamental source of income. We also need to continue to allow CPP contributors to use the contributions as a tax deduction.
Posted by: Chris C | Jan 27, 2022 3:14:51 PM
Even if they do drop Income Tax the amount will make very little difference to the wages you get in your hand/account on a Bi Weekly or monthly basis. It certainly is not going to help clear very much of what they have overspent. Which probably means they will not be spending a whole lot more either, that and of course the fact that lines of credit have been reduced so they do not have funds available.
Add to the above a harmonized Tax. What that means to the consumer is that everything they Pay GST on but not PST at present, GAS, Kids Clothes, and loads more (not enought time to list) will in increase by 8% so your 80 cent (today's price ish ) a litre for Gas will go up top 87 cents.
End result I give you back 10 bucks but guess what I'm gonna take a load more than that 10 bucks back in increased taxes. Way to go Mr Goveremnet that is a real way to stimulate the economy. DUH
Posted by: Kevin | Jan 27, 2022 4:46:00 PM
This Prime Minister has proven himself to be an idiot or he has idiot economists .. OR more precisely he is an idiot economomist, prime minister.
The entire election campaign was: "there is no problem, we will run a surplus, and never a deficit". Well either he is a liar or he cannot understand basic economic statisitics and how they can predict the future.
Because here we are a little bit later running a huge deficit. Talk about flip-flop.
He is now known as ... Mr. Stephen "Flip-Flop" Harper!
Posted by: Ron | Jan 27, 2022 5:17:36 PM
Flip flop? He had to table a budget like this one so that the liberal/NDP/Bloc coalition doesn't vote no confidence and then we hold another election and the coalition tables a budget similar to this one in 3 months. He's saved you 3 months and a costly election. The conservatives didn't want to table a defecit, they were forced into it by the circumstances. Harper's not my favorite person in the world but the liberals would have tabled a bigger deficit if given the chance, to say nothing of the NDP.
Posted by: Tim | Jan 27, 2022 5:34:37 PM
Agreed Ron, I can't believe anyone would vote liberal when you see the rape and pillaging they have historically done, this financial crisis is global, and wasn't expected by most. The other parties should start worrying about Canada and not their own small agendas by nit picking the elected government. The U.S is in the same boat, one side looking to blame the other side all the while the house is burning down around their ears and the children are fearful for their lives.
Posted by: erwin | Jan 27, 2022 5:37:55 PM
The lying thieving liberals in Ontario will eliminate any federal tax break by raising provincial rates.
Posted by: june | Jan 27, 2022 5:47:16 PM
correct me if I am wrong BUT the british north america act states that the federal government can not tax the people it can print the required amount of money to run the country as needed. the provincial government can tax people. the constitution did not alter this law. when will the federal government start to be responsible and implement this portion of the act.
Posted by: art | Jan 27, 2022 7:19:39 PM
Speaking of tax cuts. The GST is supposed to be a 1 time tax charged on consumable goods...right?
Wrong! Everyone talks ablout new car sales being hit hard. What about used vehicle sales which out sells new cars 2 to 1. Take the GST off of used vehicle sales! How can this be fair? You buy a used car private and pay no GST...buy a car from a dealer and you must pay the GST! What is wrong with this picture. Wake up everyone. So your personal income tax will be given a $700 break! BIG DEAL! Is $700 going to change your life or help pay off your mortgage, send your child to school,make you go buy appliances,cars,trips etc.....I dont think so!
GET REAL!
Posted by: Brent | Jan 27, 2022 7:21:08 PM
The over-spending of this government is outrageous! Although many say we should be proud of the money spent on initiatives to assist other nations in need (e.g. Afghanistan), it's hard to understand the logic of spending more money than we bring in. What this government is doing with this budget would be like me not having enough money to put food on the table for my kids ... but at the same time telling my employer to lower my salary (i.e. equivalent to the GST reductions lowering gov't income); encouraging my kids to spend more money at the candy store (i.e. the home improvement benefits, etc.) in the hopes that it will stimulate my employer to pay me more later on; borrowing money from the bank so I can then donate to needy people (i.e. Canada's policies on aid to foreign nation)...etc. etc. It's nonsense!! Who in their right mind spends more than they earn and expects to survive???
Posted by: Frank | Jan 27, 2022 9:32:10 PM
These tax cuts will do nothing for the average Canadian. 10 or 20 dollars a month is not going to change our lives. It has been made clear to the Provincial governments and the Federal government by the people of this country to get their hands off our money and open up locked in pensions.The government says they are doing this to protect our futures, but as you can see by what has happened that they(our governments) and the financial experts we trust can not protect our financial futures and it is time for us to have access to our monies to save our families, our homes and our marriages.These things are our future.This money can help all Canadians more then any little tax breaks that the governments believe will make a difference.They hand out our money to other countries and to big corporations and forgive other countries for the monies they owe us but they will not let us the Canadian people have what is rightfully ours.
Posted by: Terry | Jan 27, 2022 9:35:38 PM
As a single mortgage-paying property-tax paying manufacturing-plant worker I get screwed yet again. Thanks.
Posted by: Terry | Jan 27, 2022 9:40:12 PM
As someone who WORKS for a living, pays a shitload in income tax, property tax, tax on my bloody mortgage... and gets not-all back ever... you whiners suck it up, I am carrying this country! AND I BUY CANADIAN!
Posted by: Schliffer | Jan 27, 2022 9:58:48 PM
Where and what law says I have to pay income tax?
I'm reading of cases in the States where people aren't paying income tax and aren't held accountable because there is no actual law that states incometaxmust be paid.
Curious?
Posted by: Lennox Borel | Jan 27, 2022 11:25:20 PM
Tax cuts are of no benefit to the millions who are unemployed. They have no income and therefore no tax to cut. Also cash-strapped municipalities will not receive the infrastructure funds since they will not be able to match them. I think the deficit is exaggerated since the 34 billion projected for this year includes about 20 billion carryover from last year. So the finance minister is being disingenuous.
Posted by: marty | Jan 27, 2022 11:41:16 PM
Why Are We helping out US car makers and yet ignoring our own 1 lousy car made in Canada but only goes 40kmh ? Why aren't we helping it and making it the Best car in the worl that way all the money spent on it is kept in Canada and creating Canadinan job in Canadian plants. Let the US auto makers go Bankrupt. I'd rather buy a Canadian car Made in Canada. The same for the Forestry industry Why do we sell our lumber to Japan and the US so they can mill our wood and then sell it back at the same price for a couple of 2x4's as it was for the whole load? (exageration) Lets employ ourselves!