Canada’s Deficit Action Plan: Zero in Three - CTF Releases Detailed Plan and Timeline for Balanced Budget

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December 2nd, 2009

TORONTO: The Canadian Taxpayers Federation (CTF) has released a detailed plan to balance the federal budget. It is entitled Canada’s Deficit Action Plan: Zero in Three.  CTF Federal Director, Kevin Gaudet, will be meeting with federal Finance Minister Flaherty as part of federal pre-budget consultation when he will present the plan to the Minister. [Feb 23, 2010 UPDATE: Flaherty refused to meet with the CTF.]

Gaudet said, “Canada needs action on the deficit now because government over-spending threatens to saddle future taxpayers with another $10,228 each to pay off - with interest. Given how much the government has spent in the last decade, if increased government spending created jobs, every Canadian would have two.” 

The Finance Minister requested the meeting with the CTF and asked, among other questions, “Over what time period should the government bring the budget back into balance?” Canada’s Deficit Action Plan: Zero in Three is the CTF response.

The detailed plan may be found at www.taxpayer.com or by clicking HERE.

Highlights from the plan include recommendations:

  • That the federal government implement a Deficit Action Plan and return to balanced budgets over three years by:
    • Relying on reduced spending, economic growth to increase revenues and avoiding tax hikes.
  • That the federal government pass a constitutionally entrenched Taxpayer Protection Act that:
    • Requires balanced budgets, but allows for a temporary emergency deficit;
    • Requires majority popular approval in a referendum of any budget that includes a deficit where Parliament has not previously enacted the Emergencies Act; and,
    • Requires majority popular approval of all tax increases in a referendum.
  • That politicians lead by example by:
    • freezing MP pay;
    • reducing travel and expense budgets;
    • eliminating political subsidies; and,
    • disclosing in detail all MPs’ office, committee and Parliamentary Associations’ spending.

The CTF’s Deficit Action Plan would reduce spending by 10 per cent from current levels, returning it to 2008-09 levels. This would amount to a net $28 billion reduction over three years. Reductions would come from the following areas:

  • ending one-time stimulus spending; 
  • ending regional development;
  • eliminating corporate welfare subsidies;
  • a 30 per cent reduction in provincial equalization;
  • a 5 per cent reduction in most departmental operating budgets; and
  • ending and privatizing some crown corporations.

Gaudet concluded, “All it will take for the government to balancing the budget over three years is a little political leadership.”

-30-

For further information please contact:

Kevin Gaudet 1-877-267-3218 or 416-203-0030

By: Kevin Gaudet
Posted: December 02, 2009
Topic: Federal

Type: News Releases

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Comments

Are you clowns looking for anarchy??

Hey CTF,

Take off the clown shoes and open your ears for a bit. Reducing provincial equalization payments by 30% will have the Prov.'s "opt" out and into their own respective tax collecting agencies, skipping the Federal Gov't completely. Most Provinces don't like how its done now. This would effectively cripple Quebec and the Maritimes with a flood of people heading west for work (even more so than now!).

Is your charter the effective disintegration of the Canadian federation or to reduce the amount of taxes Canadians pay? Face it, we can live with the deficit spending for the time being but you buffoons think Canada is "going down with the ship" however that is far from the truth. And you want to do a cash grab on the back of the Canadian civil service, nice. You people seem to think everyone in the Fed. Gov't is making nothing but tons of money. Why don't you look more at the upper management than the grunts because thats who you would be affecting, the oil of the civil service engine are people who work for average pay and I would suggest when compared to Provincial benefits, less than average benefits.  Sure, the only perk is a decent pension plan and you jerks want to jerk it away faster than you can say lickety split.

Why don't you look for other areas of cost savings like an idiotic billion dollar gun registry in a typically Canadian knee-jerk response to one psycho with a gun. Why don't you have CBC completely have to work on their own budget through advertising? How about letting Bombardier go bankrupt instead of continually propping it up with tax payer dough? How about letting Quebec businesses pay their own way? What about the major banks' profits?? They and lawyers are the only ones making money in this recessionary time, how about sending your "investigative" journalists over there for a look? How about you clowns asking the right questions in Access to Information requests rather than your continual regular rhetorical "spin"? Or is the asking too much of your bloated little empire right now?

Something about casting stones and glass houses come to mind right now. How about a re-think of your strategy and subsequent buffoonery?

 

 

 

We are doing this

We are already making a concerted effort to deal with corporate handouts and eliminating the gun registry, as you can see here: http://www.taxpayer.com/campaigns-and-issues. As for equalization, a study by the Frontier Centre shows that the equalization system is broken. They demonstrate that "have not" provinces actually get better services than "have" provinces. The chart below is taken from the report, the full version of which can be downloaded here.

Selected government services in Quebec, Ontario, Alberta and British Columbia

 

 
Quebec
Ontario
Alberta
British Columbia
Regulated child-care space for children under 5 years of age
25%
19.6%
17.4%
18.3%
Elementary student-educator ratio
13.5
14.5
16.8
16.6
Average university tuition
$2,167
$5,643
$5,361
$5,040
Physicians per 100,000 population
217
176
197
199
Nurses per 100,000 population
717
633
715
619
Percentage of residents spending more than 1% of income on prescription drugs
28.7%
13.6%
17.4%
23.3%
Social services spending per capita
$2,342
$1,398
$1,592
$1,702
(Most generous amounts/ratios in bold)

Deficit

I can agree with a lot of what you are saying, but somehow picking on Canada Post and VIA Rail seem a little out of touch with what they represent.  The amount of subsidy is very small given the amount of people employed and the Service provided on a National basis.  Kind of small thinking there. 

The idea of hiring freezes and wage freezes for government workers has merit.  I would think it would be best to look at a Cost comparison for Contracting out a lot of Services that exist within branch of the Federal Government.  Paying a person $25.00 per hour plus benefits to clean a floor when the going rate in the private industry is about half of that really is not the intelligent way of operating a Corporation.  There are all sorts of savings that could be ferreted out of the Government departments and Corporations etc, with some sound Management.  Promoting a person into Management from the Unionized masses is really just an extension of the same problem because the mentality is the same----spend--- spend spend.  A lot of this Health and Saftey stuff has gone way way overboard and has skewed away from the core areas of Health and Safety.  It is costing us zillions, for little to no benefit.


What happens is the beaurocrats are in for life, setting ever increasing budgets that they in turn hand over to politicians for approval, basically under threat of the Services collapsing without the increases.  By the time the politician actually figures out that this is not the case, in a few years time, he or she is concentrating on trying to get re elected, or is gone or shuffled off to a different position after an election anyway.  What remains is the beaurocrat, sitll pumping out the bloated budget for his or her department, with basically little incentive to cut back and really after a number of years, loses touch with why he or she is there in the first place.


I could go on and on but really we have sold ourselves out by buying massive amounts of foriegn products.  Nobody wants to admit the truth that we are basically living beyond our means as a nation and just cannot afford all the Services we have become accustomed to since the mid seventies.


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