(February 16) – The Certified General Accountants Association of Canada wants to see tax cuts and debt relief in the first budget of the millennium.
“We’ve been calling for tax cuts for the last four budgets. It’s about time Canadians saw some reward for their sacrifices. If a Finance Minister with a whopping budget surplus estimated at $11 billion can’t give hard-working citizens a tax break now, just when will we ever get it?” says Don Goodison, chair of CGA-Canada’s Taxation Policy Committee. CGA-Canada is calling on the government to divide the majority of its budget surplus equally between tax cuts and debt reduction.
A recent study by CGA-Canada reported that $5 billion in annualized tax cuts would stimulate economic development, increasing productivity and the standard of living in Canada. It found that personal income tax cuts of approximately 7% could provide tax reduction of approximately $165 per person, creating 86,000 jobs. Carried through to fiscal 2002/03, it predicts the debt/GDP ratio would fall to 51%, with the federal debt dropping by $25 billion.
“Our Association and taxpayers in general have supported federal efforts to eliminate the deficit and reduce the debt. Indeed, the Government’s financial accomplishments are really the accomplishments of individual Canadians. Though we must continue to pay down our national debt, it’s also time for us to get something back,” added Goodison.
CGA-Canada also recommends that the budget stimulate strategic sectors such as small and medium-sized businesses, reduce EI premiums, improve small business allowances, and increase RRSP limits and foreign content allowance.