Tuesday, May 02, 2006

Budget Day

Unless you want to go the route of feigned surprise (either in the form of outrage or delight), there's not a lot to say about a budget like this which was oh so predictable. Even though we didn't get any major leaks (aside from the fictional ones on Garth Turner's blog), the entire election campaign was about this budget so it's hard to be genuinely surprised about anything (gasp! tax cuts!).

A lot of commentators are calling it a pre-election budget but it's very much a post-election budget. The Tories absolutely needed to follow through on their election promises since next election they'll be running on their record, rather than against Adscam or the "time for a change" wave of momentum. If Harper can develop a reputation as someone who follows through on his promises, he'll be unbeatable in the next election campaign. In that respect, he did a good job following through on a lot of his major promises today. And the targeted tax breaks for things like textbooks and transit are certainly aimed at winning seats in the cities where the Tories are still weak (pretty much all cities besides Calgary and Edmonton).

The most interesting thing to come out of the day is the promise for a meeting with the Premiers in the fall to deal with the "fiscal imbalance". That meeting could very well prove to be the make it or break it event of this minority government's life which will decide how long the government survives and how Harper does comes next election.

26 Comments:

  • A quick look at the 2 year numbers indicates that they divided the 1% reduction in income tax ($6B) into 3 parts:

    * retained half of it
    * $1000 credit to the employed
    * $1000 credit to the retired

    (Progressivity increases slightly due to credits wiping out 100% of tax at the bottom.)

    Bottom line:

    * Contrast to the Liberal tax reduction is sharpened.
    * GST reductions contrast to the new program spending from Liberal budgets and pre-elections campaigns.
    * Tax reduction is double the new program spending.

    By Anonymous Anonymous, at 7:03 p.m.  

  • Well, all cities except Edmonton, Calgary, Prince George, Kelowna, Kamloops, Saskatoon, Regina, Winnipeg, Ottawa, Quebec City and St.John's...so basically, Tor-Mtl-Van.

    By Blogger ALW, at 7:31 p.m.  

  • PS - geek, why is that bad? Shouldn't we be happy that the Bloc is fading? Or are you a partisan before you are a federalist?

    By Blogger ALW, at 7:33 p.m.  

  • alw:

    At CPC 34 Liberal 15 I would not assume the Liberals are ahead of the Tories in Montreal anymore.

    By Anonymous Anonymous, at 7:47 p.m.  

  • If the transit credit pushes more riders onto buses, where is the infrastructure money to enable cities to get more buses/subways? 5.5b is not enough.

    Hiring more RCMP officers is going to solve crime? What about the poverty in aboriginal communities that are now w/o the Kelowna(spelling?) agreement?

    Students get tax breaks when most dont pay taxes at all. Mr Harper must think students are dumb.

    Why does a single income family earning over $200K get the most benefit out of the $1200 childcare allowance? This is almost absurd.

    Mr. Harper gives peanuts with the GST cut, and takes away chunks by raising income taxes. And then he calls it a tax relief budget.

    To be fair, he did keep his promises.

    By Blogger mezba, at 8:31 p.m.  

  • anonymous,

    where exactly would that 15% come from??

    West Island, Central Anglo Montreal.

    Toronto East, you could call it.

    By Blogger Tarkwell Robotico, at 8:49 p.m.  

  • I don't think there's anyone out there who thinks the transit breaks will push for users onto the bus.

    It might mean more expensive bus passes though...

    By Blogger calgarygrit, at 8:49 p.m.  

  • Shouldn't we be happy that the Bloc is fading?Or are you a partisan before you are a federalist?

    I personally like having the Bloc around. With separation on the wane that particular threat is presently negligible. It's the BQs voice on the left I feel make them a valuable commodity in helping stem the ever increasing right-wing course that is being set for the country.

    By Blogger Omar, at 9:00 p.m.  

  • "If Harper can develop a reputation as someone who follows through on his promises, he'll be unbeatable in the next election campaign."

    Sadly, that is probably true.

    By Blogger Steve V, at 10:42 p.m.  

  • A lot of commentators are calling it a pre-election budget but it's very much a post-election budget.

    That is by far the best description of the budget.

    If the transit credit pushes more riders onto buses, where is the infrastructure money to enable cities to get more buses/subways? 5.5b is not enough.

    Is is 5.5 billion of FEDERAL money not enough? Don't provinces have a role in this as well? What are your thoughts on C-3?

    By Blogger eastern capitalist, at 8:26 a.m.  

  • "If Harper can develop a reputation as someone who follows through on his promises, he'll be unbeatable in the next election campaign."

    Do what you say you are going to do - What a novel concept! It seems to me we haven't encountered that type of philosophy for let's see here, maybe 12 or 13 years?

    By Blogger Joanne (True Blue), at 8:30 a.m.  

  • Omar,

    Federal spending is up again - and this is supposedly a radical, right-wing budget? If only!

    You can disagree with particular initiatives in this budget, but it's hardly a blueprint for some radical conservative agenda of a minimalist state. Sometimes it seems that critics confuse "I don't agree with this" with "these guys are radical right wingers"

    By Blogger ALW, at 9:00 a.m.  

  • EC: I would rather see the money the government loses in the bus pass tax credit (its small change to individuals but big to government coffers) go to buying new buses and subways for the transit systems.

    By Blogger mezba, at 9:15 a.m.  

  • The most interesting thing for me in the budget was it seems to outline Harper's approach to solving the fiscal imbalance. He is basically going to reduce the surpluses and give the money back to the Canadian people.

    End result, provinces stop whining if the federal government doesn't have loads of cash. Maybe then they'll be forced to come up with their own money

    By Blogger Justin, at 9:39 a.m.  

  • alw,

    Federal spending is up again - and this is supposedly a radical, right-wing budget? If only!

    And you feel that a budget brought down by a minority government 3months into it's mandate and a need to fulfil campaign promises is somehow indictative of what Harper would have in store if he had a majority of seats in the House?
    If only!

    By Blogger Omar, at 10:15 a.m.  

  • True, Colin, but to be blunt, Martin isn't Thatcher.

    By Blogger Demosthenes, at 10:33 a.m.  

  • This is far from a right-wing budget. When is someone in Ottawa going to come to grips with the fact that government spending has to be cut before the next recession hits?

    By Blogger nuna d. above, at 11:45 a.m.  

  • Well balanced budget.

    When I watch CPAC and see every special interest group say "it's a start but it is no where near what we need to solve the problem." I figure the numbers are just about right.

    I loved the CBC last night where people were complaining they were only receiving $2000/year or $1100/year in savings. I guess it just goes to show eveyone how overtaxed everyone feels they are.

    For the fella who likes the Bloc because they are communist (no hyperbole intended) shake your head. The majority of those that support the bloc are not communists, they are simply separatists and to support that party does nothing to further socialist change only separation. (they are supporting the budget because of transfer payment issues, in other words, tax relief, how drole.)

    By Blogger NorthBayTrapper, at 11:59 a.m.  

  • For the fella who likes the Bloc because they are communist (no hyperbole intended) shake your head.

    I like the Bloc because they are neither communist nor socialist. They are a left of centre workers party who reflect my progressive values more than Harper and his gang ever will. If people actually took the time to be educate themselves as to what the actual philosophies of communism and socialism are, then they wouldn't need to be shaking their heads about perceived Canadian Stalinism.

    By Blogger Omar, at 12:30 p.m.  

  • Great post by Marcel. Now let's wait for the right to come and vilify him for critizing PM Pie Wagaon.

    By Blogger Don, at 9:53 a.m.  

  • Mezba said:
    "Students get tax breaks when most dont pay taxes at all. Mr Harper must think students are dumb."


    95% of my friends all through university (undergraduate and now graduate) have had income of some sort throughout the course of the year. Whether it's part-time/full-time work, scholarships, or TA positions, there's money rolling in, and that means taxes. The elimination of scholarship taxation will be of enormous benefit to me, as will the textbook credit, the transit credit, and since I'm a TA, the $1000 employment credit.

    I realize I'm not "most students," by your calculation, but I don't think Harper is dumb. I think he's nice.

    By Blogger RGM, at 5:18 p.m.  

  • How about it we vilify him for spamming that big post in numerous unrelated comment threads all over the place?

    By Blogger The Invisible Hand, at 5:56 p.m.  

  • By Blogger raybanoutlet001, at 11:44 p.m.  

  • By Blogger zzyytt, at 12:34 a.m.  

  • By Blogger 5689, at 9:54 p.m.  

  • By Blogger lamiss ibrahim, at 6:44 a.m.  

Post a Comment

<< Home