Well, this will be a short post folks, I`m busy and traveling today, I have a special treat for you, we all know that Keith Baldrey is the BC Liberals loudest and proudest cheerleader and pom pom boy, well, maybe that is changing...
For today, Keith Baldrey in his column in the Burnaby Now paper has laughed and scoffed at Christy Clark, he claims like David Shreck and I have....Christy Clark`s HST fix is not doable and will blow a yearly $1 billion dollar whole in the budget, and that is taking into consideration the cancellation of the small business tax decrease and the raising of corporate tax...I will let Keith Baldrey do the talking...
"Politicians are rightly doubted when it comes to tax promises, so it's understandable why there is considerable skepticism over the B.C. Liberal government's promise to cut the HST to 10 per cent by 2014.
After all, our political landscape is littered with all kinds of broken promises over taxation. And no political party has clean hands when it comes to sticking to its positions on taxes.
So why should Premier Christy Clark's government be any different than its predecessors?
After all, financial and political considerations end up shaping our tax policies, no matter who is running government. And circumstances can change so quickly that they can have an immediate impact on taxes, since that is a government's main source of revenues.
This is how we ended up with the HST, remember. The worldwide economic recession blew a huge hole in the B.C. government's revenues almost overnight, and so when Ottawa came calling with a $1.6-billion "incentive" to implement the HST, the Campbell government lunged at the cash.
Clark's proposed two-point cut in the HST will cost her government about $1.6 billion in lost revenue when it is implemented in 2014. That will be somewhat offset by more than $600 million in corporate tax hikes or deferred tax reductions for small businesses.
But it still works out to about a $1-billion hit, effectively wiping out a projected budget surplus in 2014.
On the other side of the ledger, her government is insisting it can keep spending increases to less than two per cent a year.
In the four years before the 2008 recession, the annual spending increase in the government budget was 5.7 per cent. In the two years since then, spending increased an average of 3.5 per cent annually, but this was after all kinds of cuts to programs and services.
So to get spending down even further will presumably require more cuts (and it will also mean no wage hikes for public sector workers, including teachers). When one factors in the insatiable health-care system - which gobbles money at a rate of almost five per cent more each year - the challenge to stick to budget projections becomes even tougher.
Add it all up, and it seems that a cut of one point next July seems doable but a further cut of another point in 2014 seems wishful thinking at best. NDP leader Adrian Dix is perfectly correct to be dubious about the tax cuts actually occurring"
Read more: http://www.burnabynow.com/business/Libs+first+play+with/4950106/story.html#ixzz1PJXv6uKR
Well folks, when Keith Baldrey is laughing at Christy Clark and Kevin Falcon`s budget, you know it ain`t worth a hill of beans, I have said over and over again, the only blogger to critically examine the Christy Clark budget and HST fix, the numbers didn`t add up, there will be no 10% HST, ...Not without slashing and cutting or digging into your other pockets.
The Straight Goods
Cheers Eyes Wide Open