The beleaguered Liberal government will promise significant cuts to personal income taxes and a sprinkling of corporate tax reductions Monday in a pre-election mini-budget that offers something for everyone.
Finance Minister Ralph Goodale will promise to lighten the tax burden on Canadians, reiterate an earlier plan to cut billions from corporate taxes and introduce other business tax changes as part of a broader plan to boost the economy, sources say.
Goodale is expected to announce in Monday's document that Ottawa is on track to record a surplus as high as $12 billion for the current fiscal year ending March 31, 2006 — far more than the $4 billion surplus he had predicted in last February's budget.
That makes tax cuts and new education spending affordable while still leaving some money for a rainy day or debt reduction, sources say.
He'll also outline increased spending for post-secondary education and skills training; research and development; and infrastructure dollars plus administrative moves to reduce red tape for businesses.
Just don't expect the tax cuts to leave much cash in your wallet.
Goodale had to cover his left flank a few months ago by pulling out the corporate tax cuts and promising some extra money, eventually, to the medicare monopoly. Now he's hoping the Tories will be foolish enough to follow the NDP's previous path by restoring the tax cuts.
Or at least, get the Tory faithful to pressure Stephen Harper to back down for a few more months.
Which only goes to show that Goodale doesn't understand the depth of our committment to having an election. He can't buy us off the way he could have bought off the NDP. We're ready to go in the middle of a prairie winter, no less, to kick this corrupt lot out.
He could abolish income tax and announce a $1 trillion deficit and we'd still bring him down.
We're not dumb enough to be bribed over and over again with our own money.
Source: Toronto Star