The Conservative government issued a “guarantee” yesterday to Canadians that it will cut their taxes annually — starting at $700-million next year and up to $1.4-billion in 2011 — by redistributing the savings Ottawa secures from paying down debt.
“We will do this every year: pay down debt, achieve interest savings and apply those savings to personal income-tax reductions,” Jim Flaherty, the Finance Minister, said in describing the government’s “tax-back” guarantee.
“It’s time to give Canadian taxpayers a direct stake and a direct benefit from balancing the budget each year and reducing government debt.”
This guarantee was one of the highlights of yesterday’s economic statement, which provided an update on the national finances. To no one’s surprise, the government revised upward its expected surpluses — or the amount of tax revenue that exceeds spending — due to stronger-than- expected growth in personal tax revenue.
Ottawa now expects a surplus of roughly $7.2-billion for this fiscal year, ending March 31, 2007, and $7.3-billion for the following 12-month period. In his budget just six months ago, Mr. Flaherty had projected a $3.6-billion surplus for this year and $4.4-billion in 2007-08.
New Zeal New Zealand has a fraction of the population of Canada and we have an $11 Billion surplus. Even allowing for differing currency values, our surplus is clearly extremely healthy.
Yet our Minister of Finance, Michael Cullen has consistently refused to cut taxes. Says we can’t afford it.
Socialist greed I call it.