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Bush tax cut plan will force Manley's hand . . . eventually |
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Ottawa - Thursday, January 9, 2003 - by: Walter Robinson, Federal Director, Canadian Taxpayers Federation | |||||||
$674 Billion |
Instead of phoning a bank president about a loan to a professional hockey team, letís hope the next phone call placed from the Finance Ministerís office is direct to the Oval Office for more details on the U.S. tax cut plan. In total, the U.S. tax cut package, expected to sail through both Houses of Congress by Easter, amounts to an extra $674 billion left in the pockets of 92 million American taxpayers over the next decade. | ||||||
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$40,000 |
A four-person American family earning $40,000 will pay no federal income tax whatsoever. Now tell me which tax system is fairer toward lower-income and working poor families? To employ an American expression, it sure ainít us! | ||||||
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over |
The response of federal finance Minister John Manley was as predictable as the sun rising in the morning. | ||||||
ìWe want to continue to show prudence here in Canada and try and avoid a further deficit,î |
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said Manley. This is a red herring. Minster Manleyís last economic update estimates Canada will amass at least $70 billion in surpluses of over-taxation during the next five years. The facts in support of further tax relief cannot be overlooked. | |||||||
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taxes in |
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tax cut |
While Mr. Manley and his colleagues put on a brave face now, they WILL be forced to follow suit not in this yearís budget ó the Chretien legacy spending binge ó but definitely by 2004. How convenient for them Ö a tax cutting budget in February 2004 to be quickly followed by a federal election a few months later. | ||||||
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no capital |
On the bright side, it appears as though Ottawa will probably phase out or completely eliminate the $1.4 billion capital tax ó a job killing and anti-innovation tax for sure ó in next monthís budget to blunt the sting of President Bushís dividend tax cut. | ||||||
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fiscal |
Canadian Taxpayers Federation proposals for raising the basic personal exemption to $15,000 over five years, cutting spending (think corporate welfare and other grants and subsidies) and instituting a legislated debt reduction schedule will likely be ignored and as a result, we will pay the price for this fiscal incompetence for years to come. | ||||||
Walter Robinson Federal Director |
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