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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
Monday, September 15, 2014
HILL LIFE & PEOPLE SLIDESHOWS
Lobbyists, MPs get in on the ice bucket challenge for ALS Sept. 3, 2014

Photo courtesy Summa Strategies
The team at Summa Strategies took the ice bucket challenge last week at the Parliament Pub. Summa challenged board members from the Government Relations Institute of Canada (GRIC) to take it next. From left: intern John McHughan, vice-chairman Tim Powers, senior adviser Louis-Alexandre Lanthier, consultant Kate Harrison, vice-president Jim Armour, vice-president Robin MacLachlan, president Tracey Hubley, senior adviser Michele Austin, and consultant Angela Christiano.
The Hill Times photograph by Jake Wright
The Government Relations Institute of Canada board members take the ice bucket challenge.
The Hill Times photograph by Jake Wright
GRIC directors feel the chill.
The Hill Times photograph by Jake Wright
From left: GRIC president Andre Albinati, secretary Joanne Dobson, board members Kevin Desjardins and Alayne Crawford, treasurer Phil Cartwright, and board members Alex Maheu and Jason Kerr.
Photograph provided Hill and Knowlton Strategies
Health Minister Rona Ambrose gets in on the ice bucket challenge.
Photograph courtesy Hill and Knowlton Strategies
NDP Leader Tom Mulcair.
Photograph courtesy Hill and Knowlton Strategies
Liberal Leader Justin Trudeau.

MICHAEL DE ADDER'S TAKE