Federal Politics Journal

Later this month, the Green Party of Canada will be releasing an alternative economic plan, which if followed would rescue Canada from a worsening structural deficit.

Originally intended to be released as part of an election platform, the Greens will present an economic plan to get out of the deficit on January 25, the day Parliament should have opened. “Obviously, Canada can not wait any longer for fiscally responsible ideas on how to repair our economy,” said Green Leader Elizabeth May.

“Raising payroll taxes is the worst way to go in a recession. The Green economic plan calls for a reduction in the EI and CPP contributions made through payroll, and the delay of promised corporate tax cuts. Revenue would then be balanced by carbon taxes, a solution which has been praised by economists. This type of budget would allow deficit reduction, encourage energy efficiency and protect the economy of the country into the future,” said May.

Director of the Canadian Taxpayers Federation, Scott Hennig spoke to the projected tax changes that kicked in January 1, 2010. "Many taxpayers will benefit from lower taxes in 2009," Federation Director Scott Hennig said. "However, those tax cuts would be much larger if it were not for higher payroll taxes." Read more: http://www.financialpost.com/personal-finance/tax-centre/story.html?id=1123768#ixzz0cbROTxfo.

Parliamentary Budget Officer Kevin Page released a report yesterday outlining the structural deficits that Canada is facing in the wake of the Conservative government’s budgetary decisions. “Reducing the GST and cutting corporate taxes in the years leading up to the recession was a popular move, but when those tax cuts were not matched with equal cuts in government spending, a $15 Billion structural deficit was created. The recession has only added to the problem,” said Ard Van Leeuwen, Green Finance Critic. The current structural deficit is predicted to reach one percent of GDP by 2013-14 and continue to grow afterward under current policies.

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