Canadian Personal Finance Blog

That’s the interesting question that the current Government needs to answer.

He promised a “tax-back guarantee” in law that would require the government, when paying down the nation debt, to use the interest savings to cut personal taxes.

To me, that is kind of like you have decided to make “double up” or extra payments to your mortgage, but decide to lower the payments over time to make them easier to deal with and give you more spending money. Why not just keep up the extra payments and pay the debt down that much sooner, is my question?

Yes running a government is not the same as my mortgage (or is it?), and they want extra money so they can buy more votes implement more programs but the sooner the national debt is retired, the more money the government will have and the less reliance Canada will have on having to service a debt.

Don’t get me wrong, I will not be giving back any tax cut given to me (after all, I am not an idiot), but I just wonder if the government might want to deal with the problem at hand (i.e. the National DEBT) and work on cutting government over spending instead? The spending issue was also mentioned by Mr. Harper.

This week my article on Financial Resume are mentioned in the Carnival of Debt Management #2 over at Debt Consolidation Lowdown go have a peek, there is some interesting stuff over there.