Harper Sets Out Priorities For Re-Election

by Mike Godfrey, Tax-News.com, Washington

28 April 2011

With less than a week to go before polling begins, Canada's Prime Minister has announced the four priorities a re-elected government would focus on implementing, three of which emphasise low-tax plans.

Stephen Harper has again reiterated his pledge that, if re-elected, the Conservative party will not raise taxes. His three low-tax plans focus on jobs and economic growth, families, and the elimination of the deficit. Such plans, Harper says, are priorities his party shares with Canadians, and will thus deliver genuine benefits, without increasing the taxation burden.

The so-called low-tax plan for jobs and economic growth focuses on the implementation of Finance Minister Jim Flaherty's March 22 Budget, which remains in limbo, due to the election having been called before a vote could pass judgement on it. The government argues that the plan will complete Canada's economic recovery, create jobs, and lay a strong foundation for long-term economic growth. The Budget contained proposals such as a Hiring Credit for small businesses, providing approximately 525,000 businesses with a one year Employers Insurance break, and the extension of the accelerated Capital Credit Allowance rate for manufacturing or processing machinery by an additional two years.

The family oriented plan involves a series of tax breaks, including a Family Tax Cut, which would allow spouses to share up to CAD50,000 of their household income for tax purposes (to be introduced following the budget's balancing). Harper has also announced his intention to double the Tax Free Savings Account investment cap to CAD10,000, and to top up the Guaranteed Income Supplement for low-income seniors. Other measures include both Adult and Child Fitness Tax Credits, which would help cover registration costs for physical activities.

Finally, if re-elected, the party intends to take steps to ensure the elimination of the federal budget deficit by the 2014-15 financial year. Three tactics would be used: the completion of a stimulus package; the continuation of specific measures to restrain programme spending; and the conclusion of a comprehensive spending review.

Harper argued: "Canadians face a clear choice in this election between, on one hand, the opportunistic and reckless Michael Ignatieff-led Coalition, with its high-tax agenda that would stall our recovery, kill jobs and set hard-working families back; and, on the other hand, principled leadership and stable national Government with our low-tax plan for jobs and growth".

Ignatieff, leader of the opposition Liberal party, has fought back, warning of the dangers a re-elected Conservative government would bring. According to him, Harper "will only help well-off families five years from now, after making them wait at the back of the line behind billions in spending on tax cuts for large corporations, fighter jets and jails". Ignatieff has rubbished claims that his party would increase taxes, and accused Harper of "tax giveaways".

"A vote for the Liberal Party is a vote to defend the future of public health care funding, with a responsible fiscal plan that puts families at the front of the line, won’t increase their taxes, stops corporate give-aways, and turns the page on wasteful spending like $30-billion fighter jets", said Ignatieff.

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