PUBLICATION:
National Post
DATE:
2003.02.17
EDITION:
National
SECTION:
Comment
PAGE:
A14
BYLINE:
Stephen Harper and Charlie Penson
SOURCE:
National PostTax reform; Politicians; Opposition; Canada
NOTE:
Stephen Harper is leader of the Canadian Alliance. CharliePenson is the party's
finance critic.
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Chart
a new course, Mr. Manley
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In
his coming budget, Finance Minister John Manley has a unique opportunity to set
himself apart from the fiscal course set by his predecessor, Paul Martin.
In
Martin's early days -- after years of prodding by my party -- the federal budget
emerged out of an era of deficits and into an era of apparent restraint. That
restraint, however, did not last. Martin returned to the Liberal tradition of
massive spending. His cover was simple -- he chronically underestimated the size
of the surplus then spent away the bonus cash.
Martin
went on a huge spending spree in his final budgets, completely ignoring the
priorities of Canadians. Health care took a back seat to public service hiring
and low-priority programs. Martin increased spending by $7.4-billion over the
past five years on the operations budgets of federal departments, excluding
defence, but only increased spending on health and other transfers to the
provinces by $4.5-billion. In simple terms, Martin put increasing the
bureaucracy over funding for health care and other social initiatives.
Martin's
budgets provided Canadians with poor value for their hard-earned tax
contributions. The quality of public programs has deteriorated since the
Liberals took office. We have seen a 500-fold overrun in the net cost of the
firearms registry, $1-billion dollars spent on fraudulent and inadequately
administered Human Resources Development grants and millions of dollars in
advertising contracts that are now under investigation by the RCMP. In summary,
Martin approved spending with little control and no direction. Each wasted
billion was a billion wasted opportunities for Canadians.
The
public relations rhetoric around tax reductions announced prior to the last
election has perpetuated the greatest of all Liberal myths -- Liberal tax
reduction. Canada's ballooning surpluses are all the evidence we need that we
are being grossly overtaxed. It was Martin's addiction to spending that drove
our taxes higher than ever. Martin took more money from Canadians than any other
finance minister in the history of Canada.
Working
Canadians have rightfully asked: If Martin cut taxes, then why can't I see it on
my paycheque?
The
answer is that most of Martin's tax cuts were nothing more than future tax cut
forecasts, while short-term relief has been overshadowed by new levies (like the
air tax) and massive increases in Canada Pension Plan premiums.
Martin's
legacy is one of broken promises. Martin failed to reverse the increase in gas
taxes and capital taxes, brought in "temporarily" to fight the
deficit. He also created a massive government slush fund by collecting billions
more in employment insurance premiums than he needed to run the EI program.
Finally,
Martin's biggest failure was his failure to take any action on the GST. This tax
is hardest on the people who have to spend all of what they earn -- low- and
modest-income Canadians. This tax is also costly to administer, subject to fraud
of undetermined scope, and is an onerous administrative burden on small business
owners who are just scraping to get by.
The
Canadian Alliance would immediately stop runaway Liberal spending. We support
targeting most new spending only to priority areas neglected under Martin's
watch. We agree with the increase in health funding announced recently in the
new health accord, and we would also reinvest immediately in our eroding
Canadian Forces. But, in general, we believe that spending should only increase
at a rate matching increases in population and prices.
The
Canadian Alliance would immediately end programs that are of little benefit to
Canadians and Canadian families -- especially welfare schemes for our corporate
sector.
We
would return accountability to government and ensure that Canadians receive
better programs, while keeping more of their hard-earned money.
The
Canadian Alliance would immediately eliminate all taxes and tax increases
originally brought in to reduce the deficit. We would eliminate the air tax,
which is crippling our airline industry. We would deliver immediate and
substantial tax relief to families, to middle- and low-income workers and to
investors. These tax changes would be aimed at moving toward a flattening of tax
rates. Furthermore, we would not shy away from further cuts to corporate income
taxes -- to free up money for businesses to create more jobs and greater
opportunities for all Canadians.
And
we would begin by immediately reducing the GST.
Yes, this budget is a golden opportunity for John Manley to demonstrate how he would chart a different course. He can choose to correct his predecessor's destructive course, return to sound financial management and return hard-earned tax dollars to Canadian families and workers. Tomorrow, Canadians will have the chance to assess the direction that John Manley has chosen