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Canajun Finances Home » A new budget coming? Or an Election?Can you have too many tax cuts?

A new budget coming? Or an Election?Can you have too many tax cuts?

I believe that both parties are guilty of using the budget as a political tool. The budget may contain a lot of proposals that sound good but will likely never be implemented. Its purpose will be to persuade people like me, the average citizen, that the Conservative Party is the best choice to govern the country. I realize that this is a cynical viewpoint, but as a Christian, I believe that a certain amount of cynicism is necessary for the world to progress and learn.

No seriously, the new budget has a bunch of crap possible in it:

  • A tax break of some kind for capital gains, which was promised in the election last year, so the Tories need to do SOMETHING about this, but what? Who really knows? Maybe they will bring back Brian Mulroney’s infamous $250,000 life time exemption? That would be cool.
  • An increase to the personal exemption? That would be nice too, since that helps everyone across the board.
  • A TPSP? What’s that well that is a tax pre- paid savings plans that the C.D. Howe Institute thinks is a GREAT idea. You put after tax money in there, but it grows tax-free so when you take it out, the growth isn’t taxed. I like that too, if I could figure out how to make my money grow correctly.
  • Income splitting? Well, if I see that, then I know that the Tories want a spring election, because that is something they are going to keep in the “bag of tricks” ’til they need it, because poor suckers like me, will vote for the Communists if they promised that!

No matter how it’s sliced, there will be many promises made, but how many will be kept?

More interestingly, the CCPA (Canadian Centre for Policy Alternatives) thinks the Tories are frittering away the Government’s surplus by cutting taxes.

“Prime Minister Harper’s tax cut plan is so expensive, he may soon find himself having to choose between putting the nation back into deficit or slashing programs,” says CCPA senior economist Ellen Russell.

Let’s hope it does not get to that point!

Musings from the Past Week

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