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Wednesday, February 12, 2014

Federal Budget Gets Thumbs Up From Taxpayers Federation

Even though the Canadian Taxpayers Federation generally likes the federal budget because spending will be lower this year than last year and the deficit is disappearing but there's still some criticism. 

The Federation's Gregory Thomas tells CHSJ News the Harper Government should be cutting Employment Insurance taxes since over 14 billion dollars more will be brought in over the next three years than will be paid out. Thomas points out maximum E-I taxes have gone up 28 per cent since the 2008 financial meltdown and this is a disincentive on hiring. 

He also worries the big tax hike on smokes will spur more smuggling as happened in the 1990's. A carton of 200 smokes will be rising in price by 4 dollars.

Thomas also objects to 500 million dollars in taxpayer money being used to subsidise the big automakers.

Finance Minister Jim Flaherty is forecasting a deficit of 2.9 billion dollars this year but a surplus of 6.4 billion next year, just in time for the federal election.