The Surplus is Here! Let the Campaigning Begin!

[cybercoma]

For the month of February, Ottawa posted it's largest surplus since the recession at $5.1 Billion. I guess the Conservatives can now begin their campaign, which hasn't ended since the last election anyway.

http://www.cbc.ca/news/business/ottawa-posts-5-1b-surplus-in-february-1.2621933?cmp=rss

[Shady]

Why does it annoy you when Canada does well?

[cybercoma]

What gives you the idea that Canada doing well annoys me? Nothing I said can even be construed that way. Or is it that you're just trolling as usual?

[Shady]

Well, what's your problem with the surplus? You don't expect that to be campaigned on?

[cybercoma]

I didn't say there was a problem with the surplus, did I? When will you stop asking questions phrased like, "when did you stop beating your wife, Shady?"

[CPCFTW]

Looking forward to some big tax cuts in the next budget!

[The_Squid]

Thank you Conservatives for getting the deficit that you created under control... I look forward to more deficit-inducing tax cuts...

[Smallc]

That they created? Every country ran a deficit...

[Big Guy]

To create a surplus or a deficit is not complicated. To create a deficit, government policies end up spending more money than it is bringing in. The reverse is true to create a surplus. The difficulty comes in deciding which initiatives or programs should be prioritized when either increasing or decreasing government spending in each individual case.

We could probably pay off the national debt if our government decided to cut Canada pension payments in half and stop funding the military. Obviously that will not happen because the electorate would not stand for it. The secret to creating a surplus is to nibble away at programs that do not fit into the political philosophy of the current government. The politics is to sell these "nibbles" so there is no outrage. A common method is to pile all of these cuts into a bulky omnibus budget bill where the extent and effect of the nibbles can not be noticed or discussed properly.

It is usually the middle and lower income groups which feel the pain created by funding cuts since they depend the most on government funding. So it was, so it is and so it will be.

If the electorate feels that the Conservatives had and are targeting the right areas to create the surplus then the Conservatives will be re-elected. If not, then ...

It will be interesting, if during the coming campaign, any of the opposition parties will assemble a simplified version of what the Conservatives cut to create this surplus and how these "cuts" have effected them - and let the people decide.

Edited April 25, 2014 by Big Guy

[Topaz]

Let's remember just because a government has a surplus is no guarantee a win at the polls. Both, the Liberals and the Conservative got their surpluses by cutting services, 13 Bil for Libs and 5 for the Tories. Would be nice if the Tory had the 13 they were left with in 2006. Anyone see Harper on TV talking about the tax cuts coming up for the election. First time I've seen him read Q-cards and the host had his script to read from too.

[Bryan]

My favourite part from that story:

The massive surplus came about largely because of higher personal and corporate income tax revenues. Personal income tax revenues were up by $1 billion, a 9.9 per cent jump from the same month in 2013. Corporate tax revenues rose by $700 million, or 10.9 per cent.

How many times have we heard people try to claim that our economy is hurting because all those tax cuts reduced the government's revenues? That's a ten percent INCREASE in tax revenues year over year.

[guyser]

My favourite part from that story:

The one you will misunderstand?

How many times have we heard people try to claim that our economy is hurting because all those tax cuts reduced the government's revenues? That's a ten percent INCREASE in tax revenues year over year.

Economics . Know what it is?

Oh right, they increased 10%, which means of course that every year theyll go up ! Woo h....wait that aint right.

[Bryan]

The one you will misunderstand?

Economics . Know what it is?

Oh right, they increased 10%, which means of course that every year theyll go up ! Woo h....wait that aint right.

http://www.investopedia.com/terms/y/year-over-year.asp

Definition of 'Year Over Year - YOY'

A method of evaluating two or more measured events to compare the results at one time period with those from another time period (or series of time periods), on an annualized basis.

The grownups are talking, run along and play.

[Moonlight Graham]

What a coincidence that the Harper gov is set to turn a long-awaited surplus in an election year!

[August1991]

To create a surplus or a deficit is not complicated. To create a deficit, government policies end up spending more money than it is bringing in. The reverse is true to create a surplus. The difficulty comes in deciding which initiatives or programs should be prioritized when either increasing or decreasing government spending in each individual case.

I agree wholeheartedly with BigGuy's statement.

The government budget surplus/deficit is largely irrelevant. It is government spending that matters.

====

After an initial spending splurge when first elected in 2006 (Tony's gazebo and the G8), Harper's government has apparently/sort of returned spending almost to about 2007 or 2008 levels. Harper hasn't really cut spending.

If the budget is now balanced, it is largely because the economy has improved and tax revenues are rising.

In short, Harper can now use my debit card instead of my credit card to finance his purchases. Whichever card he uses, he's still spending too much of my money.

With that said, I prefer Harper to Trudeau Jnr and Mulcair who would probably spend even more of other people's (my) money.

====

It is a sad state of affairs in Western democracies that we can only choose between a wife who loves to shop and a wife who shops carefully. Who cares whether the wife uses the debit card or the credit card: we pay the bill at the end of the month. It is her endless shopping that is killing us.

Edited April 26, 2014 by August1991

[CPCFTW]

I agree wholeheartedly with BigGuy's statement.

The government budget surplus/deficit is largely irrelevant. It is government spending that matters.

====

After an initial spending splurge when first elected in 2006 (Tony's gazebo and the G8), Harper's government has apparently/sort of returned spending almost to about 2007 or 2008 levels. Harper hasn't really cut spending.

If the budget is now balanced, it is largely because the economy has improved and tax revenues are rising.

In short, Harper can now use my debit card instead of my credit card to finance his purchases. Whichever card he uses, he's still spending too much of my money.

With that said, I prefer Harper to Trudeau Jnr and Mulcair who would probably spend even more of other people's (my) money.

====

It is a sad state of affairs in Western democracies that we can only choose between a wife who loves to shop and a wife who shops carefully. Who cares whether the wife uses the debit card or the credit card: we pay the bill at the end of the month. It is her endless shopping that is killing us.

Total expenditures have remained flat since 2009 when the opposition demanded increased stimulus spending. 5 years no increase in expenditures. Next year there should be massive tax cuts. Get excited, the wife's about to pay off some of her bills!

[cybercoma]

That they created? Every country ran a deficit...

Come on, man. Don't be obtuse. Conservative policies directly reduced revenues. They set the fire that they're now taking credit for putting out. And you can't have it both ways. You can't say it's out of Harper's hands when the "world economy" tanks and he runs deficits, then turn around and praise him when the economy starts recovering and he has a surplus.

[Shady]

Come on, man. Don't be obtuse. Conservative policies directly reduced revenues. They set the fire that they're now taking credit for putting out. And you can't have it both ways. You can't say it's out of Harper's hands when the "world economy" tanks and he runs deficits, then turn around and praise him when the economy starts recovering and he has a surplus.

Complete and utter nonsense. Conservative politices have increased revenues. And Harper did exactly the right thing. Run a deficit during a recession, and balance the budget back when the economy improves.

[cybercoma]

Shady, do you ever have any idea what you're talking about at all? How many tax credits and cuts did the Conservatives introduce at a time when the economy was tanking (i.e., less money was coming in anyway)? It's like you've been living under a rock or something.

[On Guard for Thee]

Complete and utter nonsense. Conservative politices have increased revenues. And Harper did exactly the right thing. Run a deficit during a recession, and balance the budget back when the economy improves.

Harper did exactly the wrong thing. Cutting taxes to appease his corporate supporters. Reducing the GST only allowed retailers to increase prices. Board rooms win, man in the street loses.

[Topaz]

Canada doesn't NEED the Tories for any tax cuts ...the other two parties can also give tax cuts, if elected. Tory problem is all the schemes and scams they have created while is power...its time to go 2015 and no help from Pierre Poutine this time....wow, how will they win?????

[Keepitsimple]

Harper did exactly the wrong thing. Cutting taxes to appease his corporate supporters. Reducing the GST only allowed retailers to increase prices. Board rooms win, man in the street loses.

One myth at a time. If the GST increased prices for the "board Room" at all.....it would have been a very short term tactic because competition in the marketplace brings it right back down. That's just the way a free market operates. More money in the taxpayers pocket to spend.

Cutting taxes that are too high has always stimulated growth in revenues. Look at Mike Harris in Ontario. He slashed taxes by 20-25% and revenues shot way up 50-75% over his 8 years. Put money in Corporate pockets and they grow the business - their revenues grow and taxes grow. Competition in the market keeps things relatively even.

[WWWTT]

One myth at a time. If the GST increased prices for the "board Room" at all.....it would have been a very short term tactic because competition in the marketplace brings it right back down. That's just the way a free market operates. More money in the taxpayers pocket to spend.

Cutting taxes that are too high has always stimulated growth in revenues. Look at Mike Harris in Ontario. He slashed taxes by 20-25% and revenues shot way up 50-75% over his 8 years. Put money in Corporate pockets and they grow the business - their revenues grow and taxes grow. Competition in the market keeps things relatively even.

Proven false statements here!

Corporations are sitting on record high revenues that they refuse to re enter into the economy.

Secondly, consumer spending can not always be the solution to recover the economy when consumers are carrying record high debt loads.

Corporate tax cuts have hurt the economy too long.

Also, the private sector has no interest in the "free market" See any temporary foreign worker program thread!

WWWTT

[WWWTT]

Harper did exactly the wrong thing. Cutting taxes to appease his corporate supporters. Reducing the GST only allowed retailers to increase prices. Board rooms win, man in the street loses.

Bingo!

Harper didn't realize that consumers were already use to paying a set price for goods and services.

Just shows how little the conservatives actually know about consumer spending.

WWWTT

[WWWTT]

My favourite part from that story:

How many times have we heard people try to claim that our economy is hurting because all those tax cuts reduced the government's revenues? That's a ten percent INCREASE in tax revenues year over year.

Not sure if you looked at a calendar lately? But the year is 2014! Where have you been for the last 5 years Rumpelstiltskin?

WWWTT