(October 28 – 09:30) – Canada must reduce taxes substantially, ahead of new spending initiatives or ebt reduction, say TD economists in their latest report, Looking Ahead to Canada’s Federal Budget in 2000.
“In our view, the federal government should place cuts to personal income taxes squarely at the top of its near-term list of priorities — above cuts to corporate income taxes, sales taxes such as the GST, or payroll taxes such as EI premiums,” Marc Lévesque, Senior Economist, TD Bank Financial Group, said in a prepared statement.
“Even under very conservative assumptions, a $5-billion tax cut this year — which would represent $160 per person or $450 per household — appears to be well within the federal government’s reach,” notes Lévesque.
“Under the assumption that program spending rises by about 3 per cent per year — in line with the rate of inflation plus population growth — we expect that the federal government could post a surplus of more than $10 billion in fiscal 2000-01, which allows plenty of room for tax relief.”
-IE Staff
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