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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, April 21, 2014
HILL LIFE & PEOPLE SLIDESHOWS
ITK's 'A Taste of the Arctic' shindig on April 7, Ottawa, photographs by Cynthia Münster April 14, 2014

The Hill Times photograph by Cynthia Münster
A happy crowd at ITK's 'Taste of Arctic' at the NAC gathers for a picture. The annual event, held in Ottawa by the Inuit Tapiriit Kanatami, is meant showcase Inuit culture. Some 350 attend the party, including a number of MPs, Senators, Cabinet minister, lobbyists and journalists.
The Hill Times photograph by Cynthia Münster
National Inuit Leader and ITK President Terry Audla shows off his seal vest to Employment Minister Jason Kenney.
The Hill Times photograph by Cynthia Münster
Environics' Meredith Taylor and Greg MacEachern with ITK's Stephen Hendrie.
The Hill Times photograph by Cynthia Münster
Justice Minister Peter MacKay, his son Kian, and ITK president Terry Audla.
The Hill Times photograph by Cynthia Münster
ITK president Terry Audla and Abbas Rana, assistant deputy editor at The Hill Times and Party Central columnist.
The Hill Times photograph by Cynthia Münster
Labour Minister Kellie Leitch, ITK President Terry Audla, Laureen Harper, and local Ottawa photographer Michelle Valberg.
The Hill Times photograph by Cynthia Münster
ITK President Terry Audla and Labour Minister Kellie Leitch.
The Hill Times photograph by Cynthia Münster
A platter of smoked fish.
The Hill Times photograph by Cynthia Münster
Conservative MP Colin Carrie.
The Hill Times photograph by Cynthia Münster
Seal hash martinis.
The Hill Times photograph by Cynthia Münster
NDP MP Dennis Bevington, who represents the Western Arctic, N.W.T., and Chris Farris.
The Hill Times photograph by Cynthia Münster
ITK President and National Inuit Leader Terry Audla.
The Hill Times photograph by Cynthia Münster
Beatrice Dear entertains the crowd.

MICHAEL DE ADDER'S TAKE