May 2, 2006
LET THE GAMES BEGIN
Tax cuts, spending on farmers and business, all part of federal Tory budget (Sandra Cordon, National Post, May 2nd, 2006)
Awash in billions of surplus dollars, Finance Minister Jim Flaherty is likely to cut both income taxes and the GST -- as well as boost spending on farmers, students, the military and police -- in his first federal budget Tuesday.He's also expected to take an axe to some environmental programs and cultural funding as the Conservatives begin to fulfil their campaign promises to slash $22 billion from government spending over five years.
Flaherty -- who treated himself to new pair of $185 shoes Monday to wear while delivering this budget -- has already warned of painful spending cuts to come in order to pay for billions in tax reductions and spending on Tory priority programs.
Those will include $2 billion in aid to struggling farmers, billions for defence, cash to increase the number of police officers and beef up security at border crossings.
Not only will the GST be cut by one percentage point -- at a cost of $5 billion each year -- but some income taxes will likely also be lowered to ward off criticism when the Conservatives eliminate existing Liberal reductions. [...]
Flaherty is also expected to give parents $1,200 a year for children under age six for a new family allowance program that will replace a $5-billion child-care program initiated by the Liberals.
That will do nothing for Canadians without children or whose kids are now school-aged, added McCallum. (Liberal critic) He predicted Conservatives will help finance their new spending and tax cuts by trimming government jobs in rural areas, reducing cultural and social grants and programs as well as making deep cuts in environmental budgets.
Already, 15 climate-change programs have been eliminated by the Conservative government.
Already the three opposition parties are playing chicken, trying to oppose publically while praying the others support the government to avoid the election they all dread.