Ottawa – Cathy McLeod, Member of Parliament for Kamloops – Thompson – Cariboo, says Budget 2016 pledges to borrow and spend tens of billions of taxpayer dollars, while raising taxes on families, workers and job-creating businesses.
“The Liberal government’s budget projects a deficit of $29.4 billion this year and over the next five years Canada will borrow $113.2 billion, with no clearly defined timetable to return to balance,” said McLeod. “Personal income taxes will go up by $1.3 billion this year and $2.4 billion next year, due partially to the elimination of income splitting and higher rates on income over $200,000. Tax credits for textbooks, tuition and children’s fitness and arts have been eliminated.”
The new Canada Child Benefit will boost payments to some families, but comes at the expense of existing child benefits. At least 10% of families will be losing such support altogether.
“Small businesses will be hit with higher income and payroll taxes. The government has decided not to lower the small business tax rate to 9%, instead holding it at 10.5% and introducing new conditions around eligibility,” stated McLeod. “The Budget did not renew the tax credit for EI premiums paid by small business and over $1 billion in new EI expenditures points to higher premiums for all employers in the near future.”
“The Budget is cutting in several areas, including defense, where the government is deferring $3.7 billion in spending that was set to take place over the next five years. They are also deferring election promises, including funding for palliative care and Canada Post home delivery,” stated McLeod. “As well plans for the future of health-care transfers, an innovation agenda, climate-change plans and tax reforms are all subject to further discussion and negotiations before details are announced.”
“The only grade I can possibly give this budget is a D. It is going to saddle our kids and grandkids with a huge debt plus the accumulated interest. This is completely irresponsible,” concluded McLeod.