It's almost a month since I've posted here, part;y because of other things I have been busy with, partly because not a lot has been happening in the LPC leadership race and, finally, partly because I have wanted to avoid writing about the Israeli invasion of Lebanon. I may soon have a change of attitude and be ready to write about both of the latter.
But first - Stephen Harper promised lower taxes for all Canadians during last winter's campaign. The tax changes announced in the CPC's spring budget came into effect on July 1 and today I learned how they will affect me. My take home "pay" is reduced by $3.15 a month. I guess this is offset by the 1% reduction in the GST, assuming I spend $3,780 on GST eligible goods and services in a year.
So it begs the question - as the chief economist for the TD Financial Group observed today - how is the government going to pay for the billions in HVC compensation and enriched transfer payments and a boosted military at the same time as it is taking in less revenue? It is not unreasonable to think the federal budget is no longer balanced. Is this a risk Harper is prepared to take if he can engineer a fall election and get it out of the way before Canadians realise what is happening?
