Revenue would pay for social programs and deficit reduction
Federal Liberal leader Michael Ignatieff spoke at the federal party’s convention called “Canada 150: Rising to the Challenge”on March 28th in Montreal. He outlined a policy platform that, he claims, would “fight the deficit and invest in the future.”
In order to pay for the proposed expenditures, Ignatieff called for a freeze on corporate tax reductions. Corporate taxes have been decreasing since the 1980s and are currently at 18%. They are scheduled to decrease to 16.5% in 2011 and 15% in 2012.
By not following through with these planned tax cuts, the government can stand to gain another $6 billion in revenue. This will help to reduce the $54 billion annual federal deficit. Ignatieff committed to a “deficit reduction target of 1% of GDP within 2 years of taking office,” if elected.
The money would also be used to invest in social programs. Investing in education services is central to the party’s platform. Services provided within Canada would be improved by ensuring access to early learning and child care for those who want it, and by making “the cost of higher education affordable.”
Ignatieff proposed a pan-Canadian learning plan dedicated to promoting equal access to higher education. He promised to deliver a system where “if you got the brains, you get the dough.”
His ‘national strategy on education’ advocates teaching and training programs that transcend national boarders. It would profit from Canada’s international reputation through the “export of educational services to the developing world” and the use of “education as a development instrument.”
Sunday’s presentation also addressed the issue of aging populations. Ignatieff spoke of the need to “manage the growing cost of health care”; he suggested accomplishing this by investing in home-care, so that people who care for family members at home can receive support from the government.
This apparently thoughtful policy proposal was expressed in a rational way, with Ignatieff explaining an interconnection between compassion and productivity.
The presentation also called for a restoration of Canadian global leadership. Ignatieff was considerate of anti-federal sentiments, saying,“We’re not looking for a single federal voice…but a common voice.” He stressed the need for our delegates to be more helpful than they have been at global conferences.
This leadership role would also include becoming a global leader in “clean-tech, renewable energy and energy efficiency.” Ignatieff implied that market mechanisms were the proper solution to energy problems; he recommended putting in place the right “fiscal incentives” and “allocation responsibility” to promote green technology.
This plan assumes that Canada’s economic future will be brightest if we commit to reducing the deficit, and invest in education at the same time. However, the opposition warns that a failure to fulfill the commitment to reduce corporate taxes will harm the economy and Canadians by resulting in fewer job opportunities for Canadians.
