Reaction Canada Federal Budget 2011
Canada has serious social issues facing her - with record number's of food-bank users and homeless - yet the federal government is taking virtually no action on these fronts. Of course with no official poverty line(one of the only countries in the world without one) and the recent elimination of the full census, they will soon be able to provide "stock" answers about all this without fear of accountability...sort of like the "unreported crimes" "stat" that decided $billions would be spent on new jails instead of perhaps assisting to house people - Oh sorry, I guess that is a form of housing though isn't it as they'll have to put people somewhere I suppose when some begin to steal in order to eat.
This Government has drained its own $ resources - previously they cut the GST by two percentage points for a revenue loss of $12 billion per annum and they also brought in another corporate tax cut from 22 percent to 15 percent by 2012. The US sits at around 35% in comparison. It made several additional tax cuts - pension income splitting, which most benefits wealthy senior couples and further severely deprives the treasury of needed revenues.
The Budget’s most significant social policy news took the form of an increase to the Guaranteed Income Supplement (GIS) but the monthly amount of $50 is way too low to even dent poverty. Budget 2011 failed to deal with the holes in Canada’s retirement income system. The federal and provincial Finance Ministers have agreed to a new voluntary retirement savings plan called Pooled Registered Pension Plans (PRPPs) but Canada already has in place a voluntary supplementary system of pensions called Registered Retirement Savings Plans (RRSPs). These are used by taxpayers in mostly upper-income levels who have disposable income surpluses already, and receive a large tax break in return. It is modest and middle-income Canadians who remain in dire straits.
Budget 2011 also announced a Children’s Arts Tax Credit, which will be provide up to $500 of eligible fees per child in qualifying children’s programs. However whereas the income tax system does act as a highly effective vehicle for the distribution of income benefits, such as the Canada Child Tax Benefit., but the tax system is not effective for attacking social needs as the problem is that the current tax credits for lower- and modest-income households paying little or no income tax see nothing − including the one just announced in Budget 2011.
Budget 2011 introduces measures in support of caregivers. Most significant is the Family Caregiver Tax Credit that will provide an annual tax reduction of $300 for caregivers of all types of infirm dependent relatives including − for the first time − spouses, common-law partners and minor children. The new Family Caregiver Tax Credit enhances current tax assistance for those now eligible for various measures. This simply adds to a system that is already unfair. It will end up providing more to those who already receive some assistance while the rich get more tax savings and low and modest-income households get zip. It is single fixed income seniors who are most in need but nothing for them.
Budget 2011 brought in several noteworthy measures around Employment Insurance but once again Ontario will be given unfair treatment through a dated system that is inconsistent and needs a complete overhaul.
We need to develop a clear and immediate social policy agenda to help tackle Canada’s most pressing social needs - like affordable housing, income supports, and a living wage. We can accomplish this through building on what we have not deconstructing as the current government seems to be bent on doing.
This Federal Conservative government shows no respect to those seniors and others living day to day barely surviving - and I know because they call me for help and wondering where they can get food - including war vets!!! Shame on them.
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Federal Budget 2011 - PACC's - Reaction
Tom Pearson
http://www.povertyacc.com/
