Spending freeze and flat rate income tax
The convention of the Quebec wing of the Conservative Party of Canada was held last week in Victoriaville to adopt resolutions from local associations in preparation for the national convention that will take place next June in Calgary.
Among the resolutions adopted by the assembly is one put forward by the conservative association of my riding of Beauce, which proposes to freeze government spending from the moment when the budget is balanced in 2015-2016. Of course, I gave my support to this resolution from the members of my riding, which is similar to a proposal I made in a speech three years ago. I hope it will become official party policy at the national convention next summer.
Here is the text of the resolution:
WHEREAS federal expenditures have increased considerably since the 1960s;
WHEREAS we must reduce spending if we want to return the federal government to a size compatible with economic prosperity, federalism and individual liberty;
WHEREAS spending must be reduced in order to reduce the tax burden of Canadians; WHEREAS the Conservative government has begun reducing federal spending;
WHEREAS the March 2012 budget forecasts that, during the current exercise and over the next four exercises, federal spending will continue to decline as a portion of DGP as well as in proportion to the population;
WHEREAS we must continue in this direction after the achievement of the balanced budget predicted for 2015-2016 by the March 2012 budget;
WHEREAS, given economic growth and inflation, a freeze in current dollar spending would have the effect of reducing both the spending to GDP ratio and real spending (in constant dollar amounts);
IT IS PROPOSED THAT
1. Until a balanced budget (predicted for 2015-2016) is achieved, the government respect the objectives for spending cuts set out in the March 2012 budget;
2. The government freeze budget spending at 300 billion dollars in the year following the achievement of a balanced budget in the 2016-2017 financial exercise (the 300 billion dollar amount will correspond to the approximate level that spending will have reached if the projections of the March budget are realized, in comparison with 276 billion dollars for the current financial exercise);
3. That after the 2016-2017 budget, and for the four subsequent years (thus until 2020-2021), the federal government freeze spending at 300 billion dollars per year in current dollars.
I also made a short statement in support of a resolution put forward by members of Brossard-La Prairie and Mount-Royal proposing a flat rate income tax. I wrote a small book on this issue several years ago. This resolution was also adopted by Quebec conservative delegates and will be debated in June.
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