Turning the Screws

Give up on social programs, says Harper budget.
By Murray Dobbin
Published: March 4, 2008
TheTyee.ca

Harper's Conservatives in their latest budget have taken their lead from the Bush administration. They are simultaneously increasing the military's budget and cutting government revenue to set the stage for future cuts to social programs.

Just like Bush, who also came into office with the "problem" of huge budget surpluses, Harper is well on his way to achieving the neo-con objective of permanently hobbling government's ability to fund anything but the military. Grover Norquist, president of Americans for Tax Reform and a dedicated Bushite, might have been speaking for Harper when he said "My goal is to cut government in half in 25 years, to get it down to the size where we can drown it in the bathtub."

Previously announced Conservative tax cuts will mean an annual loss of government revenue of $40.2 billion by 2012-2013. Economist Erin Weir has commented, "It is striking that the tax cuts will cost as much as it currently costs to run the government of Canada's entire non-military side."

The tax free savings plan announced in the February budget will, through its compounding effects, mean another erosion of government revenue. Initially involving only small amounts, in twenty years this plan is estimated to cost the government $3 billion each year. Since poor and middle class families are mostly heavily indebted and not in a position to save, the rich are the most likely beneficiaries of the plan.

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