Harper's Creative Accounting

[cybercoma]

Harper's government claims that the budget will be balanced by 2015. Meanwhile, the Tory government has changed the accounting practices of the federal government twice in two years, which has conveniently made it next to impossible for people to figure out what has happened with direct program spending since 2012.

We can see from the graphs in the article below that revenues took a major hit. Some of this, of course, was the economic recession, but you have to remember that Harper's government also 1) Cut the GST, 2) Created Tax Free Savings Accounts, and 3) Created numerous targeted tax benefits to "families" and businesses. This list of revenue cuts is not exhaustive of course. In the meantime, program spending continued to increase before they eventually levelled them off.

As the economy recovers, the revenues are recovering, but from a much lower baseline due to the cuts made by the Tory government. The numbers are pretty clear. Conservatives are the government you want to reduce your taxes. The problem is that they continue to spend. This forces future governments into the unenviable position of holding program spending steady, while increasing taxes to bring us back to level.

Where did the additional revenue come from then? If the Tories torched their revenues, then how are they balancing the budget? Well, one of the largest increases in the share of federal revenues came from the "Other" category. What's in the other category? Who knows. The author of the article gives some suggestions which include "newly-installed fees" and "asset sales." The problem is that these categories are not sustainable income like corporate taxes, personal income taxes, and GST. The other problem is that nobody really knows what that money is from.

Give the article a read and check out the graphs and tables. I'm not a fan of the government playing a shell game with accounting practices by changing their methods twice in two years. It also seems that the balanced budget of 2015 is an injection of revenues from unsustainable sources. It seems that we have a government that's more interested in creating appearances than actually being effective. We see it time and again with propaganda-like talking points that are repeated ad nauseum and given in response to completely unrelated questions. Now we can see the crafting of appearances by balancing the budget on what are most likely unsustainable revenue sources. Meanwhile, accounting principles have been changed so no one can go back and see how expenditures compare over the last couple of years.

What needs to be done here? 1) The historical record needs to reflect the new accounting principles so year-on-year comparisons can be made, and 2) The exact sources of revenues from the "Other" category need to fully outlined to see if these revenues are from sustainable sources or just from selling off federal assets.

Article: http://www.macleans.ca/economy/economicanalysis/the-mystery-behind-canadas-shrinking-deficit/

[On Guard for Thee]

He certainly got a lot of practice with the F35 file.

[PIK]

And martin was not creative when he paid it off. lol

[Topaz]

Since the Tories changed the rule about coming before Parliament and asking for money from the Treasury, now they can just take what they want, will always show a surplus.

[cybercoma]

And martin was not creative when he paid it off. lol

where did Martin come up? He was PM a decade ago. It's time to wake up and hold your party accountable for their fiscal mismanagement.

[PIK]

where did Martin come up? He was PM a decade ago. It's time to wake up and hold your party accountable for their fiscal mismanagement.

Is harper using PS pension funds and UI fund 's??

[cybercoma]

You know Paul Martin isn't running next year, right?

[overthere]

please stop mentioning inconvenient truths about Liberal fiscal management

[PIK]

please stop mentioning inconvenient truths about Liberal fiscal management

And lets not forget the downloading martin did.

[On Guard for Thee]

And lets not forget the downloading martin did.

Maybe you should heed Cyber and get your head out of.... the past and take a look at how poorly Harper has handled the bag of money he was left with. You know, during the time the CPC has been handling it. And don't let the current accounting magic fool you. You know, like the way they have tried to do with the F 35 costs.

[Smallc]

And lets not forget the downloading martin did.

Conservatives should be a fan of returning to constitutional responsibilities.

[cybercoma]

Harper is doing so poorly that all these Conservative hacks can do is talk about things that happened over a decade ago with people that are no longer in politics.

Edited September 3, 2014 by cybercoma

[PIK]

Maybe you should heed Cyber and get your head out of.... the past and take a look at how poorly Harper has handled the bag of money he was left with. You know, during the time the CPC has been handling it. And don't let the current accounting magic fool you. You know, like the way they have tried to do with the F 35 costs.

The deficit is gone, 2nd quarter a whopping 3.1% growth, while Europe is starting to go down a again and Obama great policies have kept America down and just starting to come back, which means even better stats for canada in the future. Goverment spending is down 700 m. F-35- F-18 it does not matter, it cost lots of money to have a air force. I can't wait for the election. Romney would have done a lot better job then Obama on the economy and how many people laughed when he said Russia is going to be a problem. Trudeau and Obama are the same, all style no substance and a election will show that. I like a tough leader, and trudeau will be a push over in this nasty world.

Edited September 3, 2014 by PIK

[cybercoma]

You should probably read the article and learn to ask more questions.

[On Guard for Thee]

The deficit is gone, 2nd quarter a whopping 3.1% growth, while Europe is starting to go down a again and Obama great policies have kept America down and just starting to come back, which means even better stats for canada in the future. Goverment spending is down 700 m. F-35- F-18 it does not matter, it cost lots of money to have a air force. I can't wait for the election. Romney would have done a lot better job then Obama on the economy and how many people laughed when he said Russia is going to be a problem. Trudeau and Obama are the same, all style no substance and a election will show that. I like a tough leader, and trudeau will be a push over in this nasty world.

If you believe governments drive economies then better not be so quick to dismiss Obama. During the same quarter you are lauding Harper's 3.1, the US GDP rose by 4.2. Yes air forces are expensive, which is why you don't single source expensive items like airplanes. If you think Trudeau has no substance then you must have been asleep while he announced policies such as removing senators from caucus, declaring himself in support of pro choice, a person's right to die with dignity, legalization of marijuana. You may not agree with those issues, especially if you are a Romney supporter, but they are significant and not for the faint of heart to tackle. As opposed to Harper who, when the going get's tough, he prorogues.

[Moonbox]

Harper is doing so poorly that all these Conservative hacks can do is talk about things that happened over a decade ago with people that are no longer in politics.

Hearing you, of all people, call anyone a hack on this forum is beyond hilarious.

[cybercoma]

.

Edited September 4, 2014 by cybercoma

[Mighty AC]

Hearing you, of all people, call anyone a hack on this forum is beyond hilarious.

Cybercoma makes an excellent point, but I expect you know that and are frustrated by your inability to counter with something meaningful. Your man has had a decade at the helm and instead of citing achievements the lap dogs are still attempting to bash previous governments. It must sting to be at the finish line and yet still be searching for substance.

[On Guard for Thee]

Cybercoma makes an excellent point, but I expect you know that and are frustrated by your inability to counter with something meaningful. Your man has had a decade at the helm and instead of citing achievements the lap dogs are still attempting to bash previous governments. It must sting to be at the finish line and yet still be searching for substance.

Well now that could be a bit harsh. After all it's not due to his ability there is no substance to find, it's due his man's. Sometimes you just pick the wrong horse.

[Mighty AC]

Well now that could be a bit harsh. After all it's not due to his ability there is no substance to find, it's due his man's. Sometimes you just pick the wrong horse.

True and I suppose we can admire the loyalty of a rat that joins the captain on the bridge of a sinking ship.

[On Guard for Thee]

True and I suppose we can admire the loyalty of a rat that joins the captain on the bridge of a sinking ship.

It will be interesting when the fall session sits. Duffy goes on trial the next day. We'll see where the chips fall there with regard to loyalty etc.

[Moonbox]

Cybercoma makes an excellent point, but I expect you know that and are frustrated by your inability to counter with something meaningful.

He did not make an excellent point. The fact that you think he did has more to do with you agreeing with the underlying tone/message of the post I quoted, rather than on any sort of intellectual merit. He could have said, "Harper BAD, me no like! All people like Harper are dumbs!" and you would have been equally impressed.

Your man has had a decade at the helm and instead of citing achievements the lap dogs are still attempting to bash previous governments. It must sting to be at the finish line and yet still be searching for substance.

First of all, he's certainly not 'my man'. Your assumption that he is, along with your lap dog comment, is just the typically childish reaction of someone who struggles to reasonably handle disagreement.

As for the article, I agree with some of the comments made, particularly with the lack of transparency regarding the "other" category of revenues, as well as a the inability for critics to compare past budget figures using the new accounting rules. I don't know if that's simply a matter of it being too expensive/time consuming to review old budgets with new accounting rules, but if it was a big enough concern then I would like to think the opposition would investigate it on their own.

As for comparing past Liberals, this is simply a tactic to highlight the hypocrisy/bias of certain posters on this board, many of whom have been here a long, long time. cybercoma, for example, has been posting here for longer than Harper's been in power. I can assure you, back in 2006, he was not loudly criticizing Paul Martin's dubious methods for balancing the budget. The Liberal supporters on this board at the time were in fact championing this as responsible fiscal management.

In the end, I just found it incredibly amusing to see someone like cyber calling people 'hacks' given his history of heavily slanted and exaggerated rhetoric. It's the "If you disagree with me then you're a hack/dumby" approach to political debate. I love it.

Edited September 5, 2014 by Moonbox

[PIK]

If you believe governments drive economies then better not be so quick to dismiss Obama. During the same quarter you are lauding Harper's 3.1, the US GDP rose by 4.2. Yes air forces are expensive, which is why you don't single source expensive items like airplanes. If you think Trudeau has no substance then you must have been asleep while he announced policies such as removing senators from caucus, declaring himself in support of pro choice, a person's right to die with dignity, legalization of marijuana. You may not agree with those issues, especially if you are a Romney supporter, but they are significant and not for the faint of heart to tackle. As opposed to Harper who, when the going get's tough, he prorogues.

I can just imagine the trouble we would be in if harper kept the 3 amigos take over. On trudeau the senate move was a stupid move to impress stupid people. 3.1 is nothing to sneeze at, and maybe it is about time America woke up. Pro choice, so not all Canadians are allowed to be a liberal. Persons right to die is a tough question, not something to throw out there for votes, just like his weed laws, a lot more to legalization ,then just signing a piece of paper. JT is just trying to just pander to everyone, without even thinking it thru.

[On Guard for Thee]

I can just imagine the trouble we would be in if harper kept the 3 amigos take over. On trudeau the senate move was a stupid move to impress stupid people. 3.1 is nothing to sneeze at, and maybe it is about time America woke up. Pro choice, so not all Canadians are allowed to be a liberal. Persons right to die is a tough question, not something to throw out there for votes, just like his weed laws, a lot more to legalization ,then just signing a piece of paper. JT is just trying to just pander to everyone, without even thinking it thru.

Some pretty wild assumptions is all I see here.

[cybercoma]

Is harper using PS pension funds and UI fund 's??

Actually about that....yes. Yes he is. http://www.huffingtonpost.ca/2015/04/21/ei-fund-budget-surplus-canada-2015_n_7113322.html