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Prime Minister Stephen Harper and Governor General Michaelle Jean share a light moment prior to the reading of the speech from the throne to begin the second session of the 39th Parliament, Tuesday, Oct. 16, 2007 in Ottawa. (CP / Tom Hanson)

Tory tax cuts may not satisfy business leaders

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Date: Tue. Oct. 16 2007 11:32 PM ET

One of the key themes of Tuesday's throne speech focused on the Canadian economy and tax cuts.

To this end, the Conservatives say they will provide a further reduction in the GST, which they already cut by one per cent last year.

But that alone may not be enough to satisfy business leaders who have been calling for broader tax cuts to help industries hurt by a soaring loonie and high energy costs.

Jason Clemens of the Fraser Institute told CTV News, "Certainly over the last two years, I think a number of economists of all stripes have been disappointed in the nature of the tax cuts. We certainly haven't had broad-based, incentive-based tax cuts."

The Conservatives did promise to help workers in Canada's traditional industries including forestry, fisheries, tourism, and manufacturing. But there were no specifics.

The throne speech also made a vague commitment to help middle-class families with education and health-care needs. But the speech only specified helping families care for children with disabilities. It also promised to help some Canadians get back into the workforce.

Business commentators who are generally considered political friends of the Tories say they're not impressed by Tory management of government finances.

"I think a lot of small-c conservative Canadians are disappointed with this government's economic policies," said Gerry Nicholls of the Democracy Institute.

"They haven't done a lot in terms of reducing the size of government or cutting back spending and they've offered very little in terms of meaningful tax relief."

But Industry Minister Jim Prentice told reporters after Tuesday's speech that the Tory agenda delivers what industry and business leaders have been calling for.

"Broad-based tax relief is referred to in the throne speech," he said.

"It's an excellent agenda. I think that what we seek from Parliament is a mandate to govern. All Canadians will be impressed with a reduction in GST and with broad-based tax relief. This will appeal to Canadians."

Business leaders and ordinary Canadians could get specifics next month. That's when the government is slated to deliver its economic update, which is billed as a mini-budget of sorts.

With a report from CTV's David Akin in Ottawa

Comments are now closed for this story

Eli Xenos
said

Mike,
It's important to realize that if this was a MAJORITY government, we'd all get scr*wed.


EMG
said

This is just more Tory cynicism and manipulation. Mr. Harper promised a lot but really what has he really accomplished? He wants Senate reform but appoints Mr. Fortier to the Senate and makes him a cabinet member. He managed to get his accountablity bill passed but didn't even pay lip service to it when he made all his patronage appointments and the list could go on. Why believe him now? Given the party hypocrites and liars from all political parties, I'm voting for the Marijuana Party. They will certainly be incompetent but this would be different how? At least they will be laid back and give us a laugh now and then.


bruno
said

Minority or not, they are misguided in cutting the GST. I agree with the vast majority of economists that it is much more effective for the purpose of encouraging economic growth and productivity to cut income taxes rather than consumption taxes.
By cutting the GST they are only encouraging more consumption, almost half of which is spent on imported goods. By transferring these GST cuts to income and corporate taxes instead, they would encourage more production and increase productivity in our economy which would in turn help increase our standard of living. Very misguided!


Craig Smith
said

Notice how CTV.ca "News" Staff scour bay street for negative reaction to the speech. We don't even have the details yet and they publish a story that says they MAY not be satisfied.


janet
said

These "tax cuts" are exactly what Flaherty did to Ontario and he left hospitals, schools, and communities in tatters.

Not to mention leaving the province with a $5.6billion debt which does NOT include the the debt left on our healthcare and education system.

Every single MP that was in the past Ontario conservative government is now in the federal government.

I just hope Canadians are informed and choose to spend the millions a 1% GST will bring on needed and wanted programs like a national childcare program (80% of canadians want one) or the environment...instead of a couple cents when buying a coffee.

Btw, those who think kyoto is a fraud is seriously mis-informed or purposely trying to decieve people.



Mike
said

It's important to realize that this is a MINORITY government. I think we would see a very different style should the Conservatives win a majority, and I for one hope they do!

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