Liberals to introduce broad-based tax cuts, campaign on them
ALEXANDER PANETTA Thu Oct 20, 6:53 PM ET
OTTAWA (CP) - The federal Liberals plan to introduce broad-based income tax cuts and run on them in the looming federal election, several sources said Thursday.
The government will provide details of the plan in the coming weeks and introduce it as part of an economic program around which they will build their campaign platform. "There are several different tax brackets covered by this. It's broad-based," one government official said of the plan.
A spokesman for Finance Minister Ralph Goodale said no final decisions have been made but added that the minister has often expressed his desire for tax relief.
"We are considering all of our options, but no decisions have been made," said Goodale spokesman John Embury.
"We cannot confirm any of the details . . . because no decisions described have been taken."
Sources say the cuts being considered would not be as large as the five-year, $100-billion tax-relief program announced in 2000 and would be only one element of the Liberals' so-called Prosperity Agenda.
Other elements will likely include more money for post-secondary education, research and development, public infrastructure and also administrative moves to reduce red tape , sources say.
[Liberals reducing red tape as well???]
The government hasn't decided whether it will simply hint at its tax plan - or announce all the details - in its economic statement expected next month.
That update will reveal more if the government expects to be toppled by the opposition following the Nov. 1 release of the Gomery report, sources say.
They add that if Gomery's report on the sponsorship scandal doesn't threaten the stability of the government, Prime Minister Paul Martin will withhold the details of any tax cuts until the federal budget next year.
"The question is whether (the update will) go beyond, 'These are the areas we're going to address - and stay tuned,' " said one Liberal insider.
"Or whether (it will) say, 'These are the areas we're going to address and here's some immediate measures.' "
The Liberals don't want to reveal what could be the central economic plank of their platform if an election is still five months away, sources say.
But if they're taking a daily pounding over the scandal and seem on the verge of collapse they will try enticing Canadians with specific tax-cuts announcements.
Martin has not always been convinced of the wisdom of significant new tax cuts. It costs the federal government about $1 billion for every percentage point drop in overall tax rates - which could trigger a deficit if the economy takes an unexpected downturn.
But buoyed by ever-expanding surplus projections, government officials have become convinced they can afford a tax trim.
The Conservatives will also run on a tax-cut agenda in the next election, which is expected by April.
But the Liberals plan to portray their plan as a more moderate, left-leaning alternative that makes room for additional social spending.
"I don't think (the campaign) will be a battle of tax cuts," said a Liberal campaign official.
"What Canadians want - what the Liberals propose - is a balance between tax cuts, spending and debt reduction.
"The Liberals are always going to be proposing that balance."
The government offered an early hint of its election messaging with the Surplus Allocation Act that was recently tabled in the House of Commons.
The bill proposes to split all unanticipated federal surpluses three ways - with one-third being returned to taxpayers at income-tax time, one-third spent on social programs, and one-third on debt relief.
Finance Minister Ralph Goodale has described low taxes as a key element in creating a leaner, smarter economy capable of competing with rising powers like China and India.
He said in a speech earlier this month that the government expected to "do more" on income taxes.
"It's about fairness and higher disposable incomes for ordinary Canadians, and it's all about jobs, jobs, jobs," Goodale said.
ALEXANDER PANETTA Thu Oct 20, 6:53 PM ET
OTTAWA (CP) - The federal Liberals plan to introduce broad-based income tax cuts and run on them in the looming federal election, several sources said Thursday.
The government will provide details of the plan in the coming weeks and introduce it as part of an economic program around which they will build their campaign platform. "There are several different tax brackets covered by this. It's broad-based," one government official said of the plan.
A spokesman for Finance Minister Ralph Goodale said no final decisions have been made but added that the minister has often expressed his desire for tax relief.
"We are considering all of our options, but no decisions have been made," said Goodale spokesman John Embury.
"We cannot confirm any of the details . . . because no decisions described have been taken."
Sources say the cuts being considered would not be as large as the five-year, $100-billion tax-relief program announced in 2000 and would be only one element of the Liberals' so-called Prosperity Agenda.
Other elements will likely include more money for post-secondary education, research and development, public infrastructure and also administrative moves to reduce red tape , sources say.
[Liberals reducing red tape as well???]
The government hasn't decided whether it will simply hint at its tax plan - or announce all the details - in its economic statement expected next month.
That update will reveal more if the government expects to be toppled by the opposition following the Nov. 1 release of the Gomery report, sources say.
They add that if Gomery's report on the sponsorship scandal doesn't threaten the stability of the government, Prime Minister Paul Martin will withhold the details of any tax cuts until the federal budget next year.
"The question is whether (the update will) go beyond, 'These are the areas we're going to address - and stay tuned,' " said one Liberal insider.
"Or whether (it will) say, 'These are the areas we're going to address and here's some immediate measures.' "
The Liberals don't want to reveal what could be the central economic plank of their platform if an election is still five months away, sources say.
But if they're taking a daily pounding over the scandal and seem on the verge of collapse they will try enticing Canadians with specific tax-cuts announcements.
Martin has not always been convinced of the wisdom of significant new tax cuts. It costs the federal government about $1 billion for every percentage point drop in overall tax rates - which could trigger a deficit if the economy takes an unexpected downturn.
But buoyed by ever-expanding surplus projections, government officials have become convinced they can afford a tax trim.
The Conservatives will also run on a tax-cut agenda in the next election, which is expected by April.
But the Liberals plan to portray their plan as a more moderate, left-leaning alternative that makes room for additional social spending.
"I don't think (the campaign) will be a battle of tax cuts," said a Liberal campaign official.
"What Canadians want - what the Liberals propose - is a balance between tax cuts, spending and debt reduction.
"The Liberals are always going to be proposing that balance."
The government offered an early hint of its election messaging with the Surplus Allocation Act that was recently tabled in the House of Commons.
The bill proposes to split all unanticipated federal surpluses three ways - with one-third being returned to taxpayers at income-tax time, one-third spent on social programs, and one-third on debt relief.
Finance Minister Ralph Goodale has described low taxes as a key element in creating a leaner, smarter economy capable of competing with rising powers like China and India.
He said in a speech earlier this month that the government expected to "do more" on income taxes.
"It's about fairness and higher disposable incomes for ordinary Canadians, and it's all about jobs, jobs, jobs," Goodale said.
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