Poilievre’s plan is to substantially reduce federal spending so that it does not go up much higher than it is now. The bill, if passed, would require the government to find money for new measures within existing budgets, instead of raising debt and taxes to cover new spending. The Conservative MP’s campaign said there would be exceptions to spending related to “national emergencies such as wars, pandemics and natural disasters”. He also said that “previously budgeted spending increases” such as the annual increase in Canada Health Transport and increases in military spending would be excluded. As it stands, the Poilievre campaign said, “there is no incentive for anyone in government to uproot failed or wasteful programs.” “With pay-as-you-go, ministers could not introduce new programs without getting rid of the old ones, they would have to look for waste that would otherwise continue to steal taxpayers forever,” the campaign said in the background. . was sent to journalists. Poilievre blamed the liberal government’s high spending budgets for inflation – a charge the government rejected, saying the COVID-19 pandemic and the war in Ukraine were largely responsible for the recent price hikes.
Inflation is rising
Canada’s inflation rate is growing rapidly. According to data released by Statistics Canada on Wednesday, overall inflation reached 7.7% in May – a rise largely due to the massive rise in gasoline prices last year. The government has defended its COVID-related spending, saying it has helped the country avoid economic disaster during the worst of the pandemic. “The cost to the government is increasing the cost of living,” Poilievre said in a statement. “Half a trillion dollars in inflation deficits have increased the cost of goods and inflation taxes have increased the costs for companies that produce these goods. Why are deficits and taxes so high? To fund colossal cost increases.” Gas is pictured at over $ 2 a liter at a Vancouver gas station. Conservative leader Pierre Poilievre has blamed the federal government for inflation, while the Liberal government says COVID-19 and the war in Ukraine are largely responsible for rising prices. (Ben Nelms / CBC) Poilievre said many families and businesses already follow a pay-as-you-go approach when drawing up their budgets, as does the federal government. “When they spend more on one thing, they spend less on another. The family budget can afford a $ 2,000 vacation or a $ 2,000 renovation. Not both. They have to choose,” Poilievre said.
Ideas for tax liability
Kevin Page, a former Parliamentary Budget Officer (PBO) and federal fiscal expert, said it was difficult to compare government spending with what Canadians do each month on their own checks. The federal government’s fiscal firepower simply does not compare to the average Canadian household, he said. “There are limits to good budget comparisons between government and households. Governments face a wide range of public good issues with different time perspectives and can borrow money. [at much lower rates] “despite private households,” Page told CBC News. He said any pay-as-you-go program should be flexible to take into account changes in the economy – and there should be cuts in spending on capital goods, such as major infrastructure projects, because they represent “returns that are much higher for future generations “. “Many economists are generally concerned about government deficit bias and are therefore excited to hear about spending rules,” Page said, referring to governments’ tendency to allow deficit and public debt levels to rise steadily. “It’s good that Conservative leaders are coming up with ideas for fiscal responsibility,” he said. The US Congress has had a pay-as-you-go approach to the budget at different times over the past three decades. The program was successful in the 1990s as the US eliminated its deficit after a combination of tax increases and spending cuts. But the rule is regularly ignored by lawmakers, with Republicans pushing for unpaid tax cuts and Democrats introducing new social programs without changes to other so-called “rights” programs, such as pensions and health care for the elderly.
