What next week's budget may bring
By Gordon Powers, Sympatico / MSN Finance
The Conservative budget scheduled to be tabled next Tuesday is probably going to disappoint a lot of people – and not all of them live in Windsor.
First off, is it even going to pass? I’d say yes. Liberal Leader Michael Ignatieff is preparing his party for a real election, not another no-confidence showdown. But he won’t go away without a fight.
The Conservatives have hinted that the budget will include a borrowing frenzy that could result in a $30-billion deficit this year, all designed to boost Canada’s lagging economy.
Kitchen table changes may include more training money for those being downsized, including a possible boost in EI benefits; a series of tax credits to encourage home renovations; easier access to credit for both consumers and small business; and more social housing for low-income families. And while another GST cut seems unlikely, there has been some talk of raising the GST exemption for smaller businesses earning less than $30,000 a year to $50,000.
In addition to the existing $4-billion bailout of the auto sector, the forestry, aerospace, and mining industries all seem likely to receive some support.
Will it work? To some extent, yes. Canada's economy will rebound when the world economy takes off, not before. So, while welcome, the type of domestic stimulus being kicked around will likely have only a limited impact in the short run.
Posted by: roland fewer | Jan 23, 2022 5:49:43 PM
My guess is the bulk of the 34/60 odd billion dollar stimilus is going to be centered around Ontario industries and a pipeline funneling to Quebec. After all, isn't that where most of the votes are????
Posted by: ted_lorlene Depasucat | Jan 23, 2022 9:58:35 PM
how the most affected will rebound in inflation then deflation or to lack of works out of contract downsized layoffs and so on? livng paychecks to paychecque after the bell and after the bill scenario? let me see how they'll understand my querry.
Posted by: Dave | Jan 24, 2022 9:33:34 AM
The stimulus package is a waste of money. We will have between 2 to 5 years of a very hard recession.
Posted by: Robert | Jan 26, 2022 12:51:40 AM
I wish BC,Alberta,Saskatchewan,and Manatoba would become a separate country.Ottawa cater's to Ontario and Quebec far to much! It cost's western Canada a fortune in federal tax dollars every year to support them and their socialism way's of spending.The liberal's want everything for those two provinces, but western Canada will have to pay for all the BS!!! that will come out of this budget.
Posted by: jeremy | Jan 26, 2022 1:07:54 AM
here we go again lets here all the crap about how the west pay for everything and quebec and ontario get everything if you want to seperate then have a vote and see what happens.
Ontario has paid more then it's fair share for years when we were the ones driveing the economy and now with this ression and ontario needs a little help and all here from provinces like alberta and the rest of the west is it's not fair why should we help them. the real question is why did ontario help those provinces when they need help need i remind you that every province in this country received equllization payment from Ontario at one point or another so stop your winning
Posted by: wes | Jan 26, 2022 1:32:16 AM
I don't have a problem with Ontario getting extra funding dollars during hard times as long as more than just Ontario and Qebec get help. I would like to see all provinces see an even amount of support. Not just central canada is hurting. What happens is that although the west has been helped in the past, it took years of fighting and arguing to get it. As soon as Ontario and Quebec needs help, the federal government jumps in and saves the day. No, I don't think we should seperate but I would like to see industries like automotive and slaughtering be sent west for a change.
Posted by: John White | Jan 26, 2022 2:57:29 AM
This Ontario thing has got to come to a halt.does the Government know there are 9 other provinces in a recession as well as was mentioned the only reason they pamper Ontario and Quebec is because of the votes,that's the brunt and truth of it all.the Auto industry at 70 dollars and hour to 130 and hour is no where else in Canada not to mention the World what the hell is that about and they hand them money like it was water.Poor auto industry what the hell If the rest of Canada was making 70 an hour wow would be a dream but won't happen we know that,to separate would be the solution B.C. Should join the States as planned more then once we need to dump Canada out it's ass
it won't happen anytime soon but it's a good idea.I feel for the East Coast it's in poverty and no one cares it's all about Ontario and Quebec it will never change Harper is such a suck up to them and we don't even matter it's a FACT
Posted by: John White | Jan 26, 2022 2:58:54 AM
This Ontario thing has got to come to a halt.does the Government know there are 9 other provinces in a recession as well as was mentioned the only reason they pamper Ontario and Quebec is because of the votes,that's the brunt and truth of it all.the Auto industry at 70 dollars and hour to 130 and hour is no where else in Canada not to mention the World what the hell is that about and they hand them money like it was water.Poor auto industry what the hell If the rest of Canada was making 70 an hour wow would be a dream but won't happen we know that,to separate would be the solution B.C. Should join the States as planned more then once we need to dump Canada out it's ass
it won't happen anytime soon but it's a good idea.I feel for the East Coast it's in poverty and no one cares it's all about Ontario and Quebec it will never change Harper is such a suck up to them and we don't even matter it's a FACT
Posted by: MM | Jan 26, 2022 5:13:50 AM
Forking out money for re training a bunch of people who will then have an expensive piece of paper when they are done. Big woop! Then there will be a lot of people who have pieces of paper and still can't find work! Waste of time and money!
Posted by: LE Brown | Jan 26, 2022 7:39:10 AM
I can see by Jeremy"s comments that there is a desperate need for better education wherever he lives. Especially in the field of grammar and spelling. Didn't reallize the East was so bloody bereft of finances that they can't afford even schools.
Posted by: Tim | Jan 26, 2022 8:17:51 AM
The real problem is when we start pumping more Money into the economy the Inflation SKYROCKETS. To tell you the truth I would much rather see no money being pumped in at this point and just ride out the down turn! It is just a short term gain for Tax Payers etc... then there will be a long Term Loss due to rise of inflation. This equals less buying power and then Interest rates will SKYROCKET because Inflation will SKYROCKET and then we will have another nightmare in the housing industry with 18-20% interest rates! I am hoping for the best in this situation but the way it looks right now that will not be the case!
Posted by: wondering | Jan 26, 2022 8:33:09 AM
Why focus on big projects / companies / infrastructure? Why not put in an income floor for all Canadians while this recession runs it's course? Canada will not lead the world into recovery so let's not try to create the impossible and focus instead on easing the pain of those without employment then we can all quit whining like little children about which region/province got more/less. Jeez people, grow up !
Posted by: paddy | Jan 26, 2022 8:49:52 AM
Here we go again, with people trying to turn this into an East vs West thing. Really not very helpful folks. How many decades did the government of Canada pour money into Alberta's Oil Sands project with NO RETURN? I remember the funding starting in the early 1970s. It went on like a sci-fi pipedream for over 20 years before it started to show any real promise. Now that Albertans are all high & mighty off their oil money, do they even remember that their riches were subsidized by the entire country? Lets quit this regional squabbling. You don't see our neighbours to the south carrying on like this. And we're supposed to be the better place to live...
Posted by: Anna-Marie | Jan 26, 2022 9:04:05 AM
I have read all the comments and I have to agree name calling and finger pointing has never accomplished anything but hard feelings. In this world economic downward spiral Canada will not recover until all the other world leading nations do. That is a fact of life, Canada has never led in that sector-we are followers and that will not change until we have leadership who puts Canada and Canadians first -not corporate Canada-but the Mom and Pops of this country first-never happen. The only time we are needed is at election time. I have always been of the opinion that instead of wasting money -throwing good money after bad like they have just done with the Automotive industry- the government should be looking at making all Canadians more self sufficient. Let's face it the best thing for the Auto Industry is to close and start anew with a whole new set of policies and procedures and less money for the fat cats at the top. The money given to this point is so little to fix a gaping wound that the patient will bleed to death before a cure is found with the present way of thinking in the Auto industry. The mind set has to change and then the structural changes must follow for any success in the future. I tend to agree that the government should be looking to ensure that all Canadian families should have an income (a reasonable income) coming into each home so that we have no starving children living in this supposed land of plenty. They show all these starving children around the world and our hearts bleed for them and we send millions---- I wonder if the pictures showed starving -freezing children in this country-they are out there believe me-would we be as charitable. It is unforgivable that we have children in this country who go to bed every cold, hungry with no prospects or hope of a better life.
Posted by: Andrew | Jan 26, 2022 11:11:40 AM
Show your work people. Don't nag about Ontario and Quebec getting all the money until you've seen the budget and can prove it. And don't say it's always worked that way unless you have the numbers and facts to back it up. I want to see a full reporting of where federal funding is spent on a per capita basis for the past 30 years, including equalization payments. Unless you know to the dollar where every cent has gone and have done the research you are lying, substituting regionalism for nationalism, and opinion for fact. Don't tell me what's been going on, show me -- I think all the East Vs. Wester's would be pretty surprised to find out how fair the federal government has been.
Keep in mind that the federal government helped pay for Olympics in B.C. and Alberta, as well as infrastructure projects related to the Games. Keep in mind that all education is subsidized by the same amount, that we all pay the same taxes, that every industry in Canada, whether it's agriculture, forestry, fishing or oil, relies on government largesse from time to time to help the workers, or the industry itself.
We're all Canadians, and we all enjoy similar benefits and responsibilities. Complaining that Ontario and Quebec get everything is just plain stupid.
Posted by: Deb | Jan 26, 2022 11:15:40 AM
Name calling and east vs. west does nobody any good, I agree. However, I do think that the 2 provinces that drive the economy need to wake up. Ontario and Alberta are both leaders in Canada's economy and both either boom or bust depending on what is happening in manufacuring or oil. Equalization payments normally come out of either Alberta or Ontario and where do they go? Quebec or the Maritimes. Check out how many docs per capita, or schools and other essential services per capital Quebec and the Maritime provinces have as compared to Ontario and Alberta. And we are still giving them money when our own population is suffering? Is it time to stop fighting between these two provinces and start looking at Quebec and it's culture of entitlement that contributes what???to Canada and say just a minute here? Alberta is not doing well right now ( I know it has done well in that last few years but at oil under $40 a barrell it is suffering ), and Ontario in the manufacturing and automotive sector is not doing well. Can somebody PLEASE tell me what Quebec contributes to our confederation exactly? I think it is in the best interest of Quebec to keep the East/West thing going. It deflects from the real root problem.
Posted by: Don | Jan 26, 2022 11:18:32 AM
It appears there are lots of views on how to fix the current situation. If anyone watched the Dragons Den segment on the CBC News last week they seemed to have it right. First deficits add to the debt and eventually the tax load. No amount of stimulus will help our current situation but it would be a good time to change the foundations of how we operate financially as a country.
First simplify the tax system for both consumers and business. The levels on both sides are too complex and tend to reward the upper class or those who are in a position to cheat the system.
Answer; Simple flat rate for both segments. If you are over a certain amount on income add 10%.
Second eliminate the capital gains on property. Also undo the tax on income trusts to jump start the business sector.
Secondly eliminate the high level of red tape in goverments at all levels. We have become a society that is over taxed and over regulated and we pay for that priviledge in our taxes.
Lastly if we are to invest pick those sectors of the economy that will play a large role in transforming our country for the future: 1) Energy 2) Green economy 3) technology and finally stop the downloading of costs from the feds to the provinces to the municipalities so that the local governments can rebuild the infrastructure at a pace that makes sense not a knee jerk pace that will end up in further loss of our money through poorly planned projects.
Posted by: Deb | Jan 26, 2022 11:28:38 AM
Name calling and east vs. west does nobody any good, I agree. However, I do think that the 2 provinces that drive the economy need to wake up. Ontario and Alberta are both leaders in Canada's economy and both either boom or bust depending on what is happening in manufacuring or oil. Equalization payments normally come out of either Alberta or Ontario and where do they go? Quebec or the Maritimes. Check out how many docs per capita, or schools and other essential services per capital Quebec and the Maritime provinces have as compared to Ontario and Alberta. And we are still giving them money when our own population is suffering? Is it time to stop fighting between these two provinces and start looking at Quebec and it's culture of entitlement that contributes what???to Canada and say just a minute here? Alberta is not doing well right now ( I know it has done well in that last few years but at oil under $40 a barrell it is suffering ), and Ontario in the manufacturing and automotive sector is not doing well. Can somebody PLEASE tell me what Quebec contributes to our confederation exactly? I think it is in the best interest of Quebec to keep the East/West thing going. It deflects from the real root problem.
Posted by: jonava | Jan 26, 2022 11:32:58 AM
Hey I have a 4th suggestion ( with all due respect to Don who's idea's by and large I agree with ) that would save the taxpayers and TON of money. Get rid of the CBC.
Posted by: Phil | Jan 26, 2022 11:52:27 AM
Fundamentally, we have a responsibility towards each other. We should see each other with compassionate and thoughtful eyes. We have been through this recession thing before. The pity is that some people turn on others in tough times. We should remember that as a society and as individuals we have a responsibility towards each other. Part of our government's mandate is to try to ensure that there is a safety net for all in case of hard times, and this comitment is reflected in (among many other programs) the equalization payments. Ontario has now reached the point of needing more than they put in, and this is a relatively new position for them to be in. Why are they there? Because of the downturn in manufacturing. Think of them as your neighbours on either side of you. One has lost his job, the other has been cut back to half of the pay that he is accustomed to. Everyone on the block has been contributing to a fund just in case this sort of thing happens, and it is their need that turns them towards this fund. Not for a new tv, but just to keep the house and feed the family. Should you then resent them for dipping in to this fund? No, this is the reason the fund exists, and furthur, there may come a time when you will need to dip into the fund as well - as perhaps you have found necessary in the past.
The new budget will most likely be a feeble attempt by the administration to throw a little money in all directions without much impact - I don't have much faith that this government has enough knowledge, experience, or foresight to make a real difference in either our current economic situation, or the environment.