‘Responsible plan’ to balance budget
SCHEER UNVEILS CONSERVATIVE PLATFORM THAT WOULD TAX TECH GIANTS, CUT FOREIGN AND CORPORATE AID
The Conservative Party unveiled its platform Friday, pledging to introduce a suite of tax cuts and credits while achieving a balanced budget in five years through more controlled infrastructure spending, cuts to foreign aid, slashing corporate handouts and imposing a new tax on tech giants.
Asked repeatedly by reporters if the party had enough of a buffer in the event of a global recession and whether it might be handcuffing itself by committing to a balanced budget, leader Andrew Scheer insisted the plan was responsible.
“We believe it’s much better to have Canadians’ tax dollars going to better services or freeing up space for the government to cut taxes than to be paying interest on the debt,” he said under blue skies from Centennial Beach in Delta, B.C.
“If we do not get back to a responsible plan that’s treating Canadian taxpayers’ dollars wisely, we will see those massive deficits threaten social programs and lead to massive tax hikes.”
Scheer had previously said the Conservatives would reach a balanced budget within two years but then moved the goal post to five years. Under their plan, Conservatives would run a $23-billion deficit in 2020-2021 but reach a $667 million surplus after five years.
The Liberals said the Conservatives’ platform amounted to tens of billions of dollars in needless and painful cuts.
“We know that investing in Canadians … is actually the way to grow the economy, is the way to build resilience when the world is facing challenging times,” Liberal leader Justin Trudeau told reporters.
Under the Conservatives’ signature “universal tax cut,” Canadians making under $47,360 would see their tax rate drop gradually from 15 per cent to 13.75 per cent by 2023. This would result in a projected savings of $440 for an individual and $850 for a couple, according to the platform.
The Conservatives would also repeal the Liberals’ carbon tax. The platform claims that if the Liberals are given another mandate, price of gas would increase 31.1 cents per litre.
The party said it would also introduce new tax credits. To encourage green home renovations, for instance, the party is proposing a twoyear, 20 per cent refundable tax credit to help with renovations costing between $1,000 and $20,000.
For new parents, a tax credit will be applied to income earned under EI maternity and EI parental benefits.
To make up for revenue shortfalls, the Conservatives said they would control spending on infrastructure. While they would spend the same $187 billion as the Liberals on infrastructure, it would be spread out over 15 years instead of 12.
Accusing the Liberals of allowing 40 per cent of its infrastructure funds to lapse unused in the first two years of its mandate, Scheer told reporters the Conservatives would ensure that all infrastructure projects that have been signed off on are carried out.
“We’re going to see those through and we’re going to put in place a responsible plan that actually gets money out the door and shovels in the ground.”
The Conservatives’ biggest measure for achieving a balanced budget would come in the form of $53 billion in cuts to government spending over five years. While maintaining full-time staffing levels, the Conservatives would control government operating expenses, such as on travel and procurement, and sell off government office space. Scheer said spending on “exorbitant” consultants fees would also be reined in.
The Conservatives say $1.5 billion would be saved by reviewing all business subsidies, grants and contributions. Large multinational tech companies would be hit with a three per cent tax on revenues if they rake in more than $1 billion in global revenue and $50 million in Canada.
Foreign aid would also be reduced by $1.5 billion and $700 million would be redirected to the poorest countries and to support for children in conflict zones.
Trudeau has not committed to a timeline to a balanced budget — his platform projects $27.4 billion in red ink next year, dropping to $21 billion by the fourth year of a new mandate. During the 2015 election, Trudeau campaigned on a platform of running deficits in the near-term to boost the economy but said he would get to a balanced budget by the end of his mandate. That did not happen.
The NDP’S Jagmeet Singh has similarly not committed to a balanced budget timeline, instead opting to focus on spending on renewable energy, health and education.