Conservatives Promise No Increase in Taxes

Stephen Harper Pledged to Curb Spending to Combat the Deficit

Oct 9, 2009

According to The Canadian Press, Harper believes that his government can balance the budget by 2016 by limiting increases in spending as the economy grows.

"We do require spending discipline over the long term. We have to make sure that when the recession ends we end the temporary spending and other spending grows at a modest rate."

A Realistic Approach to Combating the Deficit?

However, the economy is expected to run a $56 billion deficit this year alone, with billion dollar shortfalls continuing until 2015-2016.

Economist Dale Orr believes that this plan is unrealistic, stating in a Friday report that the government would not be able meet its objective without raising taxes. One of Orr’s main recommendations was to restore the GST – which the Harper government cut by 2 points – to 7% in order to meet the 2016 goal.

Response from the Opposition

According to The Globe and Mail, the NDP has alleged that Harper is effectively introducing a backdoor tax by raising EI premiums and implementing a Harmonized Sales Tax. New Democrat MP Chris Charlton said the Harper government is imposing $26 billion in new taxes on families.

"The federally initiated HST will increase sales taxes by eight per cent in Ontario and seven per cent in British Columbia on all kinds of things from haircuts to funerals," she said.

The Liberals published a press release on Friday afternoon suggesting that Harper has imposed a secret payroll tax worth $15 billion on employees and employers. They further suggested that Canadians would see their EI premiums raised by $1,264 for the average two-income family and $8,884 for a small business with 10 employees.

Critics say that a year ago, as the country was entering a recession, Harper claimed that Canada would not run a deficit.

Harper Stands By His Estimates

"First of all, the scenario the government put out last month was the average of private-sector forecasters...Our forecasts are actually right along the middle and that is absolutely our plan."

Harper made a jab at Liberal Leader Michael Ignatieff, who once suggested that tax hikes may be necessary to fight the deficit.

"Obviously the opposition has other plans," Harper said. "They want to make our stimulus programs permanent, they want to create a lot of other programs and, for them, they'll have to increase taxes. But, for us, it's something that we will not consider."

The copyright of the article Conservatives Promise No Increase in Taxes in Canadian Politics is owned by Allison McNeely. Permission to republish Conservatives Promise No Increase in Taxes in print or online must be granted by the author in writing.

Oct 11, 2009 12:19 PM

Guest :

Harper went from a 13 Billion Dollar Liberal surplus into a Conservative made 55 Billion Dollar and counting deficit.
Harper has increased the job killer EI pay-roll tax by 15.5 Billion Dollars, plus his federally driven initiative of the HST on British Columbia and Ontario well put taxes up.
Other than his total obsession of destroying the Liberal Party and character assassination of Mr. Ignatieff.
He only offers Canadian’s a faith-based solution to his massive deficit, the lie of no tax increases, and keeps
well hidden the parcel of Nation changing laws he well choke down our throats after he gets his majority.

Harper is using the same lie filled pre-election strategy that BC’s Gordon Campbell used to get elected, than with a majority put forth his hidden package.
Fool me once shame on you.
Fool me twice shame on me.