[Admiral Beez]

Fiscal update: Morneau projects $343.2-billion deficit; federal debt to climb above $1-trillion

Figures released by Finance Minister Bill Morneau provide the first estimate of Ottawa’s bottom line since a pre-pandemic report in December

www.theglobeandmail.com

This is why Morneau was supposed to balance the budget by October 2019, as promised in Trudeau’s 2015 campaign.

If, during the economic boom times Canada had eliminated the deficit and presumably begun to pay down the debt, we’d have more wiggle room to cover the financial spread during times of crisis, like a pandemic. Instead, we’re heading towards 1 trillion in debt. At 49 years old, that’s unrecoverable in my life time.

 

[AlvinofDiaspar]

Fiscal update: Morneau projects $343.2-billion deficit; federal debt to climb above $1-trillion

Figures released by Finance Minister Bill Morneau provide the first estimate of Ottawa’s bottom line since a pre-pandemic report in December

www.theglobeandmail.com

This is why Morneau was supposed to balance the budget by October 2019, as promised in Trudeau’s 2015 campaign.

If, during the economic boom times Canada had eliminated the deficit and presumably begun to pay down the debt, we’d have more wiggle room to cover the financial spread during times of crisis, like a pandemic. Instead, we’re heading towards 1 trillion in debt. At 49 years old, that’s unrecoverable in my life time.

Even if he had balanced it, this crisis would have made it a rounding error. If we are truly serious about tackling debt, we wouldn't have cut GST while we are still in a deficit.

AoD

 

[Johnny Au]

I’m thinking the Conservatives are feeling really awkward about it. His rant sounds like most Conservative rants on Facebook and Twitter.

Add in all those Facebook groups that allow hate to fester, no wonder this guy was radicalized.

Don't forget Reddit and YouTube, but Facebook and Twitter take the lion's share in online radicalization and discourse toxicity. Even Zuckerberg and Dorsey can't cleanse their respective websites of toxicity, no matter how hard they try.

 

[Northern Light]

Even if he had balanced it, this crisis would have made it a rounding error. If we are truly serious about tackling debt, we wouldn't have cut GST while we are still in a deficit.

AoD

In fairness, to your point and the Admiral's........Morneau should have raised tax meaningfully, in one way or another in the last few years, such that our fiscal position would be stronger.

You're quite right to point out that stronger would seem marginal against the obstacles of Covid; but stronger is still better.

 

[Richard White]

In fairness, to your point and the Admiral's........Morneau should have raised tax meaningfully, in one way or another in the last few years, such that our fiscal position would be stronger.

You're quite right to point out that stronger would seem marginal against the obstacles of Covid; but stronger is still better.

What we really need is a 60% VAT tax.

 

[Northern Light]

What we really need is a 60% VAT tax.

60%, eh?

LOL

Wow, LOL

That would have no adverse effect on the economy at all.....................

Also.......elasticity is a thing.

 

[AlvinofDiaspar]

What we really need is a 60% VAT tax.

Not necessarily that excessive:

https://www.macleans.ca/economy/economicanalysis/why-canada-might-need-a-temporary-covid-19-tax-and-repayment-fund/

AoD

 

[Admiral Beez]

Even if he had balanced it, this crisis would have made it a rounding error. If we are truly serious about tackling debt, we wouldn't have cut GST while we are still in a deficit.

AoD

True, but still this is exactly why you're not supposed to be in constant deficit. But anyway, the questions I have now is who do we owe this new massive deficit to. If it's mostly to ourselves via the Bank of Canada, then perhaps it matters less.

But still, we need a plan to pay this off. Maybe it's time for that climate tariff on China goods.

 

[Admiral Beez]

Even if he had balanced it, this crisis would have made it a rounding error. If we are truly serious about tackling debt, we wouldn't have cut GST while we are still in a deficit.

National Post recommends increasing GST. That's a good start.

Posthaste: How to pay for the ballooning federal debt? Lower income taxes — but raise others

Lower corporate taxes, too

financialpost.com

 

[AlvinofDiaspar]

National Post recommends increasing GST. That's a good start.

Posthaste: How to pay for the ballooning federal debt? Lower income taxes — but raise others

Lower corporate taxes, too

financialpost.com

I am not convinced that raising GST AND cutting income tax (which is what they recommend in that piece) at the same time as the way to go - it's like you're hoping you'd end up coming up ahead in that process.

What they should also do is close up all the loopholes, tax credits and whatnot.

AoD

 

[Admiral Beez]

I am not convinced that raising GST AND cutting income tax (which is what they recommend in that piece) at the same time as the way to go - it's like you're hoping you'd end up coming up ahead in that process.

What they should also do is close up all the loopholes, tax credits and whatnot.

AoD

I agree. I'm fine with my income tax as is, and I don't buy much of anything, so raise the GST. But yes, close the loopholes.... and sell off the Federal stakes in pipelines, etc. No more pork to resources in Alberta, Quebec, elsewhere. The future is not oil based, we're throwing good money after bad.

 

[lenaitch]

Ya, like what happened to all the hype about money flowing offshore to tax havens?

 

[DSC]

I agree. I'm fine with my income tax as is, and I don't buy much of anything, so raise the GST.

So, public policy should be decided because you are "fine" with your income tax and think the GST should be raised because you "don't buy much". Really??. I'm actually in favour of a far larger HST and a lower income tax myself as the HST is generally a much fairer tax (particularly if food and 'essentials' are excluded. ) I suspect I might pay more tax but .....

 

[Admiral Beez]

So, public policy should be decided because you are "fine" with your income tax and think the GST should be raised because you "don't buy much". Really??.

Yes, I thought I was clear. Of course I still buy gas, the occasional patio pint, clothing, motorcycle parts, electronics when necessary, etc. So I do pay GST, but I just don’t think I care what the rate is - when it was lowered I didn’t spend more, and when it’s increased I won’t spend less. So, if raising the HST can help, go for it.

I'm actually in favour of a far larger HST and a lower income tax myself

This is no time for lowering income taxes in some hope of Reaganomics trickle down economic growth. Leave my income tax rate as it is, but close all the loop holes that the rich use to avoid taxes. Start with these....

And then go after these ones that smaller companies use.

Tax loopholes for small business owners in Canada

Tax loopholes for small business owners in Canada to help you save money on taxes. Read on to find one of the best kept secrets revealed.

madanca.com

Tax Guide to Paying Your Family Members | QuickBooks Canada Blog

Read about the tax benefits of hiring your kids or spouse, and explore other alternatives to paying family members. Review income transfer alternatives.

quickbooks.intuit.com

And this is the opportunity for Ontario to amalgamate the school boards. Use those savings to better regulate LTC.

 

[lenaitch]

And/or eliminate multiple publicly-funded school systems.