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How to Balance the Budget in 2 Years

action plan-1Don’t tell me it can’t be done. We’ve run the numbers. It can.

Should the political will exist, Ottawa can eliminate its deficit in two years without raising taxes, or even draconian cuts for that matter. Still reductions will be required, to the tune bringing spending levels to $18 billion below 2010-11 levels by 2012-13. That would return program spending to levels seen between 2008-09 and 2009-10. Not radical, but very different from the current course of perpetual deficits and increasing government that we are charted on.

The CTF’s Zero in Two: Deficit Action Plan details how this can be done while not raising taxes or rescinding scheduled future reductions:

  • Eliminate corporate welfare, regional development agencies, bio-fuel subsidies, most arts and language subsidies and other select grants and contributions.
  • Privatize Atomic Energy of Canada, Canada Post’s Purolator Courier and VIA Rail. Also, end taxpayer support for the CMHC. Also, end any financial support for Canada Post.
  • Reduce most departmental budgets from 10-25% and freeze remaining budgets for two years.
  • Reduce the Equalization Program by 10% annually over two years and assist recipient provinces in paying down respective debts in lieu of cash-transfers.
  • Continue growth in Health and Social Transfers and National Defense spending at a reduced rate.
  • Pass a Taxpayer Protection Act to ban future deficits and tax increases without an explicit mandate to do so given in an election or referendum.
  • Pass a Debt Retirement Act with a schedule for making Canada a debt-free jurisdiction.
  • Prevent a further EI payroll-tax hike by eliminating non-insurance based EI programs.
  • Eliminate the Vote Tax – per vote subsidy.Savings

cross-posted at taxpayer.com/blog

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