Fiscal Policy

[Milko]

Hi, I am very new to the forum. I recently(well 4 years ago) got interested in the politics. So I was looking for a Canadian forum today. And I am wondering about Canadian fiscal policy. So here is my perception and my question...

Liberal party held power from 1993-2006, 13 years. Under Chretien Canada got budget surplus and never lost it giving heritage of surpluses to Conservatives. Conservatives used budget surplus as a tax break since then, also they were committed to 3 billion per year of debt pay off each year. While they kept the promise for 2(3?) years, next budget projects rather low surplus. So I want to ask a question, were tax breaks wrong? If not what led to shrinkage of Canadian surpluses? Simply pre-recession in US? Or because conservatives didn't lower spendings, but increased it? Thank you.
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[Kreskin]

Welcome. I expect a number of people will chime in and give their two-cents worth. What's your opinion?

 

[Milko]

Welcome. I expect a number of people will chime in and give their two-cents worth. What's your opinion?

Cutting taxes while increasing spending is my opinion. I am not sure though, there are plenty of people, who think that tax breaks give more revenue. That is why I am asking.

 

[karrie]

I wish I could remember which member it was on here, but, someone pointed out once that all a government surplus means is that we've been taxed at too high a rate. If you give a tax cut, the reasonable outcome is a smaller surplus. That's doesn't mean that it was wrong to give people tax breaks, that means that it did what it was meant to, keep tax payer money where it belongs, in their pockets.

 

[Milko]

I wish I could remember which member it was on here, but, someone pointed out once that all a government surplus means is that we've been taxed at too high a rate. If you give a tax cut, the reasonable outcome is a smaller surplus. That's doesn't mean that it was wrong to give people tax breaks, that means that it did what it was meant to, keep tax payer money where it belongs, in their pockets.

Completely agree with this one. But, we have to keep in mind that initial 3 billion per year of debt paying off was actually an awesome conservative policy I can agree on.

According to this site http://www40.statcan.ca/l01/cst01/govt03a.htm

Canadian debt is 508 billion of dollars, and we pay interest on it. So in my opinion it is essential to maintain somewhat high budget surplus in order to pay off the debt, or invest in something that will increase revenue to pay off the national debt. I think it is irresponsible to pass liability of current generation to the next. We have to fight it. And tax increase might be one of the means to make our children debt free.

 

[Outta here]

Hi Milko - welcome to CC - noticed your comment elsewhere about trying to find the introduction forum... would you like me to start you a thread?

 

[Milko]

Hi Milko - welcome to CC - noticed your comment elsewhere about trying to find the introduction forum... would you like me to start you a thread?

I am fine, thanks! But I will use your reply as an opportunity to bump the thread, it would be delightful to see conservative opinion.