{"id":153293,"date":"2024-04-21T21:05:00","date_gmt":"2024-04-22T01:05:00","guid":{"rendered":"https:\/\/doppleronline.ca\/rwddev\/?p=153293"},"modified":"2024-04-21T23:12:50","modified_gmt":"2024-04-22T03:12:50","slug":"budget","status":"publish","type":"post","link":"https:\/\/doppleronline.ca\/huntsville\/budget\/","title":{"rendered":"Listen Up! Are we really on the road to prosperity?"},"content":{"rendered":"
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\u201cDo we want to live in a country where we choose to pass a blooming debt to our children? … It would be irresponsible and unfair to pass on more debt to the next generation.\u201d <\/p>\n\n\n\n

\u2014 Chrystia Freeland, Deputy Prime Minister and Minister of Finance<\/p>\n<\/div>\n<\/div>\n\n\n\n

<\/p>\n\n\n\n

Right.<\/p>\n\n\n\n

Now let\u2019s look at the Federal Budget that Ms. Freeland tabled last Tuesday; an increase in spending of $52.9 billion and a projected deficit for this fiscal year alone of at least $40 billion.<\/p>\n\n\n\n

All of this on top of an existing national debt of $1.25 trillion. Yes, that\u2019s TRILLION. How many of us can  even contemplate how much that really is? Interest alone on this debt is costing Canadians between $46.5 billion and $54.1 billion a year, depending on who you are listening to. <\/p>\n\n\n\n

Over the past eight years there have been no balanced budgets and there are no reasonable plans in place to prevent future deficits. In fact, it is estimated to grow to an annual deficit of 64.8 billion by 2028\/29.<\/p>\n\n\n\n

During that same eight years, the national debt has doubled, rents have doubled, and the cost of mortgages have sharply increased. Not perhaps all of this government\u2019s fault, but certainly all of it under their watch. <\/p>\n\n\n\n

Chrystia Freeland has said that an improving economy, higher revenues, and tax changes will help offset the $52.9 billion in new spending. That is wishful thinking at best, and at worst, it reflects her belief that potential new revenue should be used for more spending rather than dealing with a national debt that is rapidly becoming uncontrollable. <\/p>\n\n\n\n

Prime Minister Justin Trudeau said about this Budget, \u201cCanadians need responsible leadership right now. Let\u2019s build a country that is stronger, more prosperous, and fair to every generation.\u201d<\/p>\n\n\n\n

Right again.<\/p>\n\n\n\n

 But does this budget accomplish this or even carve a path to that objective?  I think not. Indeed, I think it does the opposite.<\/p>\n\n\n\n

 In my view, this Budget is one more reason why the Canadian dream is out of reach for many Canadians today and for the vast majority in our future. For the Prime Minister and his Finance Minister to say that this budget is fair to every generation, including the current one, and one that will build prosperity and prevent passing a blooming debt to our children is simply inconsistent with reality. <\/p>\n\n\n\n

It is clear that this Budget has been crafted to appeal to younger voters. This demographic has traditionally leaned toward the Liberals. But that is changing as many of them are now realizing that extensive new spending, on top of a massive federal debt, with no real plan to deal with it, will eventually come back to bite them and their children seriously.<\/p>\n\n\n\n

There are two aspects related to this budget that particularly concern me. The first is the increase in the Capital Gains tax to 67 per cent after certain deductions. Chrystia Freeland has implied that this only applies to the \u201csuper-rich.\u201d  <\/p>\n\n\n\n

I disagree with that, and so does former Liberal Minister of Finance Bill Morneau, who said this about the proposed Capital Gains tax this government intends to impose. \u201cThis is not about the 1% or the super-wealthy. It is anyone who has made investments over their lifetime to try and have a retirement (income).\u201d<\/p>\n\n\n\n

Moreau has also warned that increased corporate taxes will make multinational corporations think twice about investing in Canada. <\/p>\n\n\n\n

As for the capital gains tax increase, many Canadians at all levels of our social structure invest in financial markets to help with their future economic stability. Unions make huge investments for their members, and millions of individuals invest directly in the markets for financial stability. The Government is fooling itself if it really believes this negative tax only affects the \u201csuper-rich.\u201d<\/p>\n\n\n\n

When it comes to taxes, it might be wise to heed the words of Winston Churchill who said, \u201cWe contend that for a nation to tax itself into prosperity, is like a man standing in a bucket and trying to lift himself up by the handle.\u201d<\/p>\n\n\n\n

My second serious concern related to the Federal Budget is less obvious but nevertheless important. The Government is dedicating  $8.5 billion to build new housing in Canada with a goal of four million new homes by 2031. <\/p>\n\n\n\n

That by itself is good news. Whether it actually happens with the usual bureaucratic posturing and delays, on top of  questions and challenges related to jurisdiction, is another matter. <\/p>\n\n\n\n

There is no question, however, that housing is a serious problem in Canada. This problem has two parts: affordability under current economic circumstances and new people arriving in Canada as part of the Federal Government\u2019s Immigration policies.  <\/p>\n\n\n\n

The more housing that can be built across Canada over the next decade, the better. But how and under what conditions it can be done requires cooperation and collaboration between the provinces and the federal government. A dictatorial approach by the federal government will not work.<\/p>\n\n\n\n

In response to a question in a media scrum about whether Justin Trudeau will work with the provinces on federal conditions related to funds for new housing or deal directly with the municipalities, Trudeau said, \u201cI\u2019d always rather work with the provinces, but if we have to, I will go around them.\u201d <\/p>\n\n\n\n

The problem is that he can\u2019t. Section 92 (F) of the Canadian Constitution says so. That section gives the provinces jurisdiction over municipalities and the rules that govern them. Any breach of this could well result in a serious constitutional battle that would make it even harder to get houses built. <\/p>\n\n\n\n

It would also mean (and this is a major part of my concern) that if the Constitution of Canada can be ignored for this issue, what precedent does that set for overriding other constitutional requirements that could affect the fabric of our already fragile Canadian federation? <\/p>\n\n\n\n

In recent weeks, provincial premiers have written to the Prime Minister twice, once asking for a First Minister\u2019s Meeting related to the carbon tax and once cautioning him about stepping on provincial jurisdiction. He has shrugged both of them off.<\/p>\n\n\n\n

An end-run around the premiers is not acceptable. Prime Minister Trudeau should meet with the provinces and territories expeditiously. His statement that he doesn\u2019t need to since he met with them in 2016 holds no water. <\/p>\n\n\n\n

The Canadian federation is a partnership, and the Prime Minister needs to work with the provinces to find mutually agreeable solutions to many of the difficult problems that now face us. Neither should step on the other’s jurisdiction without agreement and cooperation.<\/p>\n\n\n\n

In summary, this federal budget and its possible consequences create or perpetuate a number of serious problems. <\/p>\n\n\n\n

Finance Minister Chrystia Freeland shows little real concern over the generational effect of Canada\u2019s debt. Instead, she has said that people who question her budget are economically illiterate. Really?  <\/p>\n\n\n\n

She is also saying that her Budget is making life cost less and more affordable.  <\/p>\n\n\n\n

I wonder how many people believe that. I guess we will soon find out.<\/p>\n\n\n\n

Hugh Mackenzie<\/p>\n\n\n

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\"\"<\/figure><\/div>\n\n\n

Hugh Mackenzie has held elected office as a trustee on the Muskoka Board of Education, a Huntsville councillor, a District councillor, and mayor of Huntsville. He has also served as chairman of the District of Muskoka and as chief of staff to former premier of Ontario, Frank Miller.<\/em><\/p>\n\n\n\n

Hugh has also served on a number of provincial, federal and local boards, including chair of the Ontario Health Disciplines Board, vice-chair of the Ontario Family Health Network, vice-chair of the Ontario Election Finance Commission, and board member of Roy Thomson Hall, the National Theatre School of Canada, and the Anglican Church of Canada. Locally, he has served as president of the Huntsville Rotary Club, chair of Huntsville District Memorial Hospital, chair of the Huntsville Hospital Foundation, president of Huntsville Festival of the Arts, and board member of Community Living Huntsville.<\/em><\/p>\n\n\n\n

In business, Hugh Mackenzie has a background in radio and newspaper publishing. He was also a founding partner and CEO of Enterprise Canada, a national public affairs and strategic communications firm established in 1986.<\/em><\/p>\n\n\n\n

Currently, Hugh is president of C3 Digital Media Inc., the parent company of Doppler Online, and he enjoys writing commentary for Huntsville Doppler.<\/em><\/p>\n\n\n

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