Finance Minister Jim Flaherty has indicated that the Federal Goverment of Canada may be looking at ways to put more money into Canadian’s pockets through tax cuts. This may happen as part of the multi-billion dollar stimulus package that the Harper Government is contemplating tabling in January to help boost the economy during these tough economic times.
Will individual tax cuts be enough to turn around the economy? It is obvious that consumers are growing more and more pessimistic, and with retailers indicating early on that numbers for Christmas shopping are down, it is obvious that 2009 will mean pain for many people financially.
Corporate tax cuts and a new tax free saving account came into effect on January 1, 2009, and there are signs that this may help stimulate a lagging economy. However, what other tax cuts that Flaherty is planning will be revealed on January 27, as the Harper government brings down a new budget.
The new budget is likely to include money for infrastructure, a bail-out for the Ontario auto industry and money for the forest industry. However, tax cuts are seen as a way to stimulate the economy by leaving more money in people’s pockets.
The budget on January 27 will be Harper’s “last shot” according to Liberal leader Michael Ignatieff. It is still uncertain how the coalition will handle things once the new budget is revealed.
What is known is that 71,000 jobs were lost in November 2008, signalling hte biggest one-month drop since 1982. With many people concerned about their futures and their jobs, any tax savings may be kept for those tough economic times ahead.
There is no denying that something has to be done. The fact that Harper prorogued parliment to save his ass has been seen by many Canadians as a desperate measure, especially considering the constant downturn in the global economy. The fact that Canada was paralyzed politically has contributed to the decline in consumer confidence.
I for one, think that what happened in the last month of Federal Politics is disgusting. Seeing how an unelected official (our Governor General), managed to put us in the situation that we are in now. Surely, there were more options open to her.
