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A $50-billion deficit: the next useful crisis

The principal explanation behind the $50-billion deficit: the huge tax cuts made by the federal Liberals and Conservatives since 1995.

Photographs by Jake Wright, The Hill Times

VANCOUVER—It is astonishing given all the commentary and news stories about the "sudden" $50-billion federal deficit there has not been a single story in the mainstream media that focuses on the principal explanation: the huge tax cuts made by the Liberals and Conservatives since 1995. First it was finance minister Paul Martin with his $100-billion income tax cut over five years starting in 2000; then it was Jim Flaherty in 2007 with $60-billion over five years. Add to that the $12-billion lost each year by lowering the GST from seven per cent to five per cent and the $50-billion is no mystery—it was an inevitability whenever the next recession hit.

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A $50-billion deficit: the next useful crisis

The principal explanation behind the $50-billion deficit: the huge tax cuts made by the federal Liberals and Conservatives since 1995.

Photographs by Jake Wright, The Hill Times

VANCOUVER—It is astonishing given all the commentary and news stories about the "sudden" $50-billion federal deficit there has not been a single story in the mainstream media that focuses on the principal explanation: the huge tax cuts made by the Liberals and Conservatives since 1995. First it was finance minister Paul Martin with his $100-billion income tax cut over five years starting in 2000; then it was Jim Flaherty in 2007 with $60-billion over five years. Add to that the $12-billion lost each year by lowering the GST from seven per cent to five per cent and the $50-billion is no mystery—it was an inevitability whenever the next recession hit.

  

Parliamentary Calendar
Tuesday, August 26, 2014
HILL LIFE & PEOPLE SLIDESHOWS
Remembering Devon Jacobs Aug. 19, 2014

The Hill Times photo by Jake Wright

Devon Jacobs, right, with Monte Solberg and Jim Armour at the 2012 Manning Networking Conference.

The Hill Times photograph by Jake Wright

Devon Jacobs with Liberal MP Scott Simms.

The Hill Times photograph by Jake Wright

Devon Jacobs with former colleague Jim Patrick, Liberal Leader Justin Trudeau and Liberal MP Mauril Belanger at the 2013 all-party party.

The Hill Times photograph by Jake Wright

Devon Jacobs, centre, with Conservative MPs (from left) Susan Truppe, Colin Carrie, Ted Opitz, Lynne Yelich and Eve Adams.

MICHAEL DE ADDER'S TAKE