The real problem is how do we:
1. Raise Defence spending to 2%;
2. Lower spending overall to balance the budget by the end of the first term from at least a deficit of 250B$; and,
3. Cut and simplify taxes and remove tariffs to spur high economic growth.
Anyone without a plan to do that is blowing smoke and condemning the whole country, even Max, to the whirlwind.
First, must come sharp deregulatory reform to boost economic growth without any cost to the treasury and to get more revenue for the treasury from the growth and put more money into Canadians' pockets from the price and cost savings that will result - the sectors would include telecomms, banking, airlines, energy and agriculture. This should also make steps 1. and 2. easier and support step 3.
Second, a 20% reduction in spending for savings of 60 billion dollars per year. For example, All regional development programs (this Plan is all the development we will need) and direct corporate subsidy would be eliminated. More savings would come from standardizing EI. More perennial targets like the CBC and Heritage grants and the like would also be cut. But, no mistake should be made - this will hurt. BUT it should be possible to do this so that, with attrition and other measures, there is no layoff or reduction in benefit to the truly needy. (All COVID programs would be eliminated immediately if not already gone)
Third, eliminate all indirect corporate welfare and cut all tax expenditure by 1/3 and thus save at least 50 billion dollars per year to apply to eliminate all taxes on savings and investment whatsoever (a large part of which would be capital gains already forgiven now by the TFSA , RESP's, RRSP's and RRIF's.) as well as all tariffs and to reduce the top income tax rate to 25% and the total brackets to two - 15 and 25. The corporate tax would be reduced to 10% so that every province's total business rate would be no higher than even tax free US States.
With the new revenue from the economic growth generated by the lower or zero tax rates and greater tax efficiency and the savings from general spending cuts and erasing corporate welfare and broadly lowering tax expenditures, it should be more than possible to increase Defence spending gradually, or 4 billion per year (x4 years for a total of 16 billion more) to hit the 2% target.
(A long term decision should also be made to increase the HST by one percent for every one percent the income taxes are further reduced to move the couhtry inexorably away from the income taxing business and to consumption. The above are the best steps to take first in this direction.)
The growth would further enable this effort by bringing in some $3 billion dollars more to the general revenues for every 1% of new economic growth WITHOUT raising or changing taxes in any way.
All non-OSHA Federal regulation would be reduced further (three cut for every one new promulgation) thus cutting the cost of compliance for all and spurring further economic growth. This should also save more spending as the civil servants needed to administer it and their establishments are eliminated by attrition (thus all you essential Fed CS would not lose a single job and maybe even get a raise for your superb performance!). And, by all means, introduce the Federal Government to 21st Century business practices for more economy and service.
Except for the Tax and Excise Codes and the enabling statutes and ordinances for the reductions, privatizations, regulation and deregulation, there is no need for new spending, programs, orders or other initiatives in this Plan. It can all be done (except for the Defence Plan and the budget balance) in one budgetary cycle. The rest can be done in 1 term.
This my Plan for Economic Recovery and Growth and Long Term Sustainability. Or at least it is a start to a better future than our past. The others can't see the forest for the trees or have no plan or both or don;t want to tell us the truth about what will be necessary. Their dawdling will only bring us more pain. Oh, poor Max!
BTW, only one of Peter's "Eight Points" is important and is met by this Plan - creating the conditions for prosperity. The rest is up to the Canadian People. I bet on them!
