That was the status of a long-time party activist today on Facebook after the budget of Jim Flaherty was revealed.
The budget is actually not that bad! I wanted a lot of tax cuts and infrastructure spending which are what I feel will move the country foward. Even if the economy is in a rut now, investment in roads, rail, air, etc. will be critical once things turn around. Infrastructure, particularly to rural areas, is a good thing. The budget delivered on those.
Some discretionary spending in there to tempt the opposition but whatever. All in all, i give it a B-.
I'll highlight the key points and comment
"$40 billion stimulus over the next two years including auto sector bailouts. Huge deficits in the near-term but stabilizing by 2012-13." Deficits are always bad. I hoped they could keep them to a much smaller figure if they had to go into the red. I foresee Liberal attacks on the tax cuts as reason for the deficit.
"$4 billion to spend on infrastructure projects where ground has been broken." A good step. Infrastructure always helps. If the government should spend in one place, it's vibrant transportation of goods and people.
"At its worst, the federal debt is projected to be $542.4-billion in fiscal 2012-13." That's not bad all things considered. The debt is at $492 billion now. This is a better projection than most G-8 countries.
"This budget will create or maintain 190,000 jobs." Perhaps in the infrastructure spending they're pumping in but those aren't permanent jobs.
"$200-billion to the financial markets to improve access to credit." I don't know why in Canada this has to be done. Canada didn't experience foreclosures.
"$8.3-billion for the Canadian Skills and Transition Strategy for job retraining." This could help a few folks but that seems like a lot of money for a jobs program.
"Create a Home Renovation Tax Credit that will provide up to $1,350 in tax relief for home renovations between Jan. 27, 2009, and Feb. 1, 2010. Some 4.6-million families are expected to benefit." A nice little tax credit but considering most home renovations run in five figures, I don't think it will save much.
"Tax cuts of $20-billion over five years. It proposed to bump up by $320 the basic personal amount, or the income eligible to be earned before it is taxed, to $10,320. Also, it will raise the upper limits of the first and second personal income tax brackets, to $40,726 and $81,452, respectively. Tax experts pegged the annual savings for individuals earning more than $80,000 at $317."
A very good measure here. Should help out people. I love tax cuts
I also welcome the freeze on employment insurance payroll taxes. Canadians will be able to keep more of their income and spend it in the economy.
"$2.5 billion on a Clean Energy Fund to help businesses be more green with technologies such as carbon capture and storage." Sadly, Conservatives here have bought into the climate craze though I assume it's just to appease the opposition.
"In Canada’s Economic Action Plan, we will extend the 50-per-cent straight-line accelerated CCA rate, by two years.We will also provide a temporary, 100-per cent CCA depreciation rate for eligible computer hardware and software acquired over the next two years.Our government has already provided permanent tax relief to Canadian small businesses.We increased the amount of income eligible for the small-business tax rate, from $300,000 to $400,000.In Canada’s Economic Action Plan, we will increase that amount again, from $400,000 to $500,000."
Very business-friendly moves. The CCA rate is the percentage you can deduct in taxes when you invest in your business. Those moves are intended to boost infrastructure. The increase in small business income threshhold is also welcome.
"$1 billion for a Green Infrastructure Fund to support projects such as sustainable energy."
I believe this is discretionary spending in a bad economy.
There's more stuff but I could go on forever. The speech is over an hour after all.
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