Four Fingers of Fate

In the aftermath of the election, thoughts turn to something that should have been discussed during that execrable campaign - policy! In a land where the Prophet of Politics is Kim "Election Campaigns are no time to talk about policy" Campbell , this is sadly no shock. Yet, I persist in hoping that in some election campaign perhaps sooner than some think some Leader will actually propose coherent policies relevant to improving the life of Canada and her People. I now offer some ideas for any one willing to read:

1. Tax Reform - Cut half of the Nation's Tax Expenditures. These are deductions, credits, allowances and exemptions and other tax breaks that go to individuals and business. The value of them is estimated by some to be worth about 7% of GNP or half again of official government spending! Take the saved costs of lost revenue and eliminate all individual tax brackets save two - 15% for up to $100000.00 (after a tax free personal allowance retained of $20000) and 25% for above. RRSP's, TSA's, RRIF's and RESP's would be retained only if the Capital Gains Tax was not eliminated. Most Canadians would experience a tax cut and some would be removed from the rolls. Best, the small start up entrepreneurs and business that employ us, provide us with new goods that improve our standard of living and make our economy tic will be supercharged in their incentives to work and build (especially if we eliminate the CGT and reduce the corporate rate);

2. Balance the Budget - Freeze spending after COLA for 4 years. The resultant savings would eliminate the deficit as soon as in two years or no later than four assuming a 1.5%-3% effective reduction in spending from this action, any surplus should go to reducing the debt or taxes. It's exactly how Paul Martin balanced the federal budget in the 90's when we were all told it would never be balanced and it was worse proportionally than it is now;

3. Government for All not the Few - Eliminate all Corporate Welfare. This would typically save enough money to eliminate the Capital Gains Tax and useless Tariffs that collect no excise tax but discourage importers from providing their goods to our consumers (see tax reform above) while protecting narrow commercial interests that, in some cases don't even make the goods thus debarred. The new revenues from #1. and 3. might also be sufficient to halve the corporate tax to about 8%; and,

4. Free Markets - Deregulate Airlines, Banks, Agriculture and Telecomms. A family stands to save thousands, annually, from these reforms or an increase in spending power of about 8% depending on the examples you give for cheaper cellphones, airline tickets, dairy and poultry and bank fees. Better, it will provide consumers (along with the tariff reform) more choice,  service, competition and lower prices in a wide range of goods and services. Finally, it should not cost the Taxpayer a single cent except to publish the repealing laws;

The result of these reforms would be an economic boom not witnessed since the 90's but really only last seen in the fifties and sixties. Overnight, We would be more competitive and 

productive than the United States. As mentioned earlier, all would see their take home pay increased either by tax cuts or deregulation or a combination of both. The standard of living would also soar. By this objective reform, our resources as a nation would be dedicated to the things that we are best at and directed away from the things we are bad at. Our youth would see the creation of new value-added jobs that would ensure a bright future repeated generation after generation. Further, our social programs and defences could be enhanced not cut back as the turbocharged boom from the economic and fiscal reforms produces great new sources of revenue and desperately needed capital from here and abroad to pay for our critical shortage of infrastructure. Finally, if done right, these reforms would not have to cost a dollar and again spin more revenue than we had before.