Deficit is growing ...150 Billion!

Topaz · July 6, 2009

I tried to find a link but couldn't but I did see this on the evening news that Page is predicting the deficit to grow to 150BIL. Of course, the finance minister is saying its lower but come on, he hasn't been right yet! I think we as canadians should know why its so high. They spend and blame on the "globe economics" and sooner or later we ARE going to see tax increases or spending cuts. I suppose the two biggest expenses are the EI and the military.

Smallc · July 7, 2009

Single year, or combined deficits?

Edited July 7, 2009 by Smallc

Craig1 · July 7, 2009

I tried to find a link but couldn't but I did see this on the evening news that Page is predicting the deficit to grow to 150BIL. Of course, the finance minister is saying its lower but come on, he hasn't been right yet! I think we as canadians should know why its so high. They spend and blame on the "globe economics" and sooner or later we ARE going to see tax increases or spending cuts. I suppose the two biggest expenses are the EI and the military.

Finance Minister Jim Flaherty, trying desperately to stop a late campaign swoon by the Conservatives, gives a speech in Toronto in which he promises there will never be a deficit under his watch, no matter how gross things get with the world economic slump."Were sure not going to run a deficit," Flaherty said. "We will maintain a surplus in Canada and we will continue to pay down the debt."

http://www.winnipegfreepress.com/opinion/b...ewAllComments=y

Craig1 · July 7, 2009

… NDP Leader Jack Layton took aim at the Conservatives for creating “the largest deficit we have seen in the history of Canada.”

“What do they have to show for it? There have been 400,000 people thrown out of work. There should at least be some results for the steps that they have taken, but there are not any,” Layton said.

Fortunata · July 7, 2009

According to Global National, the experts are saying the way to deal with this deficit is to put the GST back up. What will win with Harper - taking care of the country's best interests (raising the GST) or his political best interests (not raising the GST)?

capricorn · July 7, 2009

Here's the link to Page's report in the media.

http://www.canada.com/business/fp/Raise+ta...4446/story.html

The $150B deficit is over 5 years, that is to 2014.

-----

A compromise could be raising the GST by 1% and increasing the GST rebate to low income earners. Although, if the Conservatives increase the GST they will be accused of raising taxes by the usual suspects. This is especially touchy since Harper said the opposition would tax and spend.

Craig1 · July 7, 2009

A Little Perspective on $150 billion. check it out !

http://87billion.com/

-this means a debt of $4450.37 for every man woman and child living in Canada.

- In the first year we will pay about $363 million in INTEREST alone!

-compounded every year!

What every man woman and child needs to do is cutt the government a $5000 checque right now. Nobody can afford this kind of debt!

Edited July 7, 2009 by Craig1

Topaz · July 7, 2009

A Little Perspective on $150 billion. check it out !
http://87billion.com/

-this means a debt of $4450.37 for every man woman and child living in Canada.

- In the first year we will pay about $363 million in INTEREST alone!

-compounded every year!

What every man woman and child needs to do is cutt the government a $5000 checque right now. Nobody can afford this kind of debt!

You know, Harper keeps boasting about how much money the party has from the Conservative supporters, maybe he could get enough money to pay off his part of debt!!! After all, the supporters have to share the blame of what the party does. I think what he'll do is start selling off the crown property,probably to the US and with this deficit growing he's just leading Canada the pathway to the NAU!!

bush_cheney2004 · July 7, 2009

......I think what he'll do is start selling off the crown property,probably to the US and with this deficit growing he's just leading Canada the pathway to the NAU!!

Oh no.....not the US....anybody but them !! :lol:

Shady · July 7, 2009

You don't raise taxes during a deep recession. That's about the last thing you want to do, unless of course you want to crush any hope of a quick economic recovery. And recessions are when running small deficits are understandable, and even helpful. You cut spending after the economy has recovered, and balanced budgets will be easily achieved. There's no reason to get hysterical over a few small deficits, because Canada is in good fiscal shape, and as a percentage of GDP, they're minuscule.

Remember, it could be much worse. We could have a tax and spendoholic like Barack Obama, running up TRILLION dollar yearly deficits as far as the eye can see. Thank God we're getting off easy. To quote the article...

The federal government will be running a ^{relatively small} but permanent deficit in five years

Craig1 · July 7, 2009

Remember, it could be much worse. We could have a tax and spendoholic like Barack Obama, running up TRILLION dollar yearly deficits as far as the eye can see. Thank God we're getting off easy. To quote the article...
The federal government will be running a ^{relatively small} but permanent deficit in five years

. You need to consider their population is way greater than ours.

annually per person Harper is spending more money than Obama

Craig1 · July 7, 2009

Beijing has already mentioned that it would like an alternative to the dollar as the world reserve currency, and it wants the topic discussed further at a summit this week, according to Reuters.

China's business hub, Shanghai, is making plans to install its own version of Wall Street's famous charging bull statue, according to Reuters. The China Daily reported that the statue would weigh 6 metric tons, compared with Wall Street's 3.2 ton bull. The newspaper said that the bull should "bring confidence and fortune to the Chinese people in times of economic uncertainty."

http://www.reuters.com/article/bigMoney/id...504577220090705

Shady · July 7, 2009

annually per person Harper is spending more money than Obama

That's complete nonsense.

ToadBrother · July 7, 2009

According to Global National, the experts are saying the way to deal with this deficit is to put the GST back up. What will win with Harper - taking care of the country's best interests (raising the GST) or his political best interests (not raising the GST)?

Most economists were against the cut in GST in the first place (economists seem to have a particular affinity for consumption taxes, which they feel do not impinge upon productivity nearly as much as income and business taxes). The Conservatives were told by several economists to keep the GST at its rate at the time (7%) and further cut income and corporate taxes. But the Conservatives, lead by a guy who may have a degree in economics, but clearly is so enamored with Libertarian pseudo-economic nonsense, managed to do everything wrong.

Flaherty, it seems, took lessons from Baghdad Bob in trying to spin bad situations.

Edited July 7, 2009 by ToadBrother

Bonam · July 7, 2009

Most economists were against the cut in GST in the first place (economists seem to have a particular affinity for consumption taxes, which they feel do not impinge upon productivity nearly as much as income and business taxes). The Conservatives were told by several economists to keep the GST at its rate at the time (7%) and further cut income and corporate taxes. But the Conservatives, lead by a guy who may have a degree in economics, but clearly is so enamored with Libertarian pseudo-economic nonsense, managed to do everything wrong.
Flaherty, it seems, took lessons from Baghdad Bob in trying to spin bad situations.

The cut of the GST is pretty much the only thing any Canadian government has ever done that's actually benefited me in any way. Sorry but I'd much rather save 2% on all my purchases than contribute to some fund to bail out some worthless company or fund some misguided social program. If you feel like paying extra tax, feel free to donate to the government, and leave the rest of us out of it.

madmax · July 7, 2009

According to Global National, the experts are saying the way to deal with this deficit is to put the GST back up. What will win with Harper - taking care of the country's best interests (raising the GST) or his political best interests (not raising the GST)?

What EFFING experts???? There aren't any experts, just a bunch of stupid talking heads. I sincerely read better advice on MLW.

Now heres a great idea.... The Feds have spent too much, and given too much away in 10s of BILLIONS of dollars in Tax cuts. So they need revenue, and some jerk says, the best way to do this is to help KILL the retail market and increase the Goods and Services Tax.

Governments are always looking at new ways to tax us, or to shift the taxes off their political base and onto the base of the others. In the end the only sucker in this is the common citizen getting hosed.

The deficit is a 150Billion that has been wasted, but make for great photo opps for all the CPC MPs.

Enjoy this until the bill comes in.

capricorn · July 7, 2009

The deficit is a 150Billion that has been wasted, but make for great photo opps for all the CPC MPs.
Enjoy this until the bill comes in.

Let's not forget that Page's numbers, like the government's are projections. I think we are being presented with the worse case scenario. Just who the hell knows? :huh:

Werecar · July 12, 2009

The cut of the GST is pretty much the only thing any Canadian government has ever done that's actually benefited me in any way. Sorry but I'd much rather save 2% on all my purchases than contribute to some fund to bail out some worthless company or fund some misguided social program. If you feel like paying extra tax, feel free to donate to the government, and leave the rest of us out of it.

The problem is that consumption taxes are the best way for the government to garner revenue from everybody. Do you know how much revenue Canada gets from consumption taxes from the millions of visitors that come to Canada each year? That's revenue we don't need to get from the tax payer. Think about it. Millions of people visit each year and buy things like pop, chips, ride tickets, show tickets, meals, gas, hotel stays, etc. The list is endless. Sure they can apply to get at least some of that tax back but the bulk of the small purchases that we get that revenue do provide a fair amount of revenue from the government. It might be smaller but I'll also point out that its a way of taxing those people that are lying about their income or work without filing tax returns.

Sure you do save money especially if you make a big ticket purchase but in the long run income tax cuts benefit you better. A GST cut is only redeemable if you spend money while an income tax cut saves you money regardless. Would you rather have 1% saving on whatever money you spend on GST applicable goods or save 1% tax owing on your yearly income?

Smallc · July 13, 2009

Do you know how much revenue Canada gets from consumption taxes from the millions of visitors that come to Canada each year?

Well, we used to give that back.

Werecar · July 13, 2009

Well, we used to give that back.

We still do. They need to produce a receipt of course. I'm talking about all the myriad of small purchases that you don't bother saving the receipts for. In my mind the consumption taxes spreads the tax burden not only more fairer across the countries tax payers but all those who don't normally pay income tax. I had an uncle who worked piece work construction almost all his adult life and he only started filing tax returns when he started his own company.

There are a lot of people who in one way or another cheat the tax man and consumption taxes are a good way to help minimize that.

Smallc · July 13, 2009

We still do.

I thought we did away with that program?

lily · July 13, 2009

We did. 2 years ago, apparently.

I didn't know that either.

Werecar · July 13, 2009

We did. 2 years ago, apparently.
I didn't know that either.

Are you guys sure? If it is then it certain shows Harper saw a way to make up lost revenue under the very theory I am putting forth.

Werecar · July 13, 2009

http://www.cra-arc.gc.ca/E/pub/gi/notice221/README.html

OK. I see that they did. It looks like Harper was indeed looking to make up lost revenue in this manner. Still it shows how important the GST revenue is to the coffers.

lily · July 13, 2009

I googled, because I thought the program was still in effect too.

I agree with you though - lowering income tax would have been better than lowering the GST. One just had better optics, and better short term results.