(October 8 – 14:15 ET) – The
Canadian Institute of Chartered
Accountants wants to see the
government spend its expected
$10 billion surplus on debt
reduction, personal income
tax cuts and limited spending
increases in the next federal
budget.

CICA recommends knocking $5
billion off the debt, $3.5 billion
in tax cuts and another $1.5
billion in increased spending.
The next budget should have a
target a 58.2% debt-to-GDP ratio
by April 2001, dropping to 55.4%
by April 2002, which it estimates
the $5 billion could achieve.

CICA says that for a $3.5
billion tax cut the feds could
eliminate the 5% high-income tax
surtax, restore tax parameter
indexation, increase the basic
personal exemption by $200 and
cut the marginal tax rate by
1% each. The institute will make
its recommendations to the House
of Commons Standing Committee on
Finance at pre-budget consultation
hearings later this year.

IE Staff
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