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"If
there was a major economic slowdown, then the appropriate
policy would be to run a deficit," said the
organization's senior economist, Marc Lee. "Cutting
spending at a time when an economy is going into a
downturn is only going to make the situation worse."
Lee
said the organization's alternate budget is aimed at
solving some of Canada's most stubborn problems, ranging
from homelessness and a shortage of quality child care to
poverty and climate change. He said the budget's proposed
new spending of $76.4 billion over the next three fiscal
years can be accomplished without going into deficit if
current economic projections hold.
"The
legacy of this minority government is one of neglect. The
Conservative government has failed to address some of the
most pressing issues of our time," the centre said.
The
spending would be financed by, among other things,
restoring the GST to six per cent from the current five
per cent; creating a new tax rate of 31.5 per cent for
those earning more than $250,00 a year; rolling back
billions of dollars worth of corporate tax cuts laid out
by the minority Conservative government in its economic
update in October; and spending all budget surpluses
instead of using them to pay down the debt.
The
policy centre's budget proposes imposing a $30-a-tonne
carbon tax, beginning July 1, that would rise to $75 a
tonne by 2020. This is three-times higher than the tax of
$10 a tonne announced last week by the B.C. government.
A
$30-a-tonne carbon tax would boost gasoline prices by 7.1
cents a litre and fuel oil prices by 8.5 cents a litre.
Lee said some of the revenues would finance energy tax
refunds for Canadians living on low and modest incomes.
Environmentalist
David Suzuki plans to use a news conference today in
Ottawa to press the federal government to include in its
budget a carbon tax or carbon trading system to cut
greenhouse gas emissions.
Source
: Canada.com - Hamilton, Ontario, Canada, dated
25/02/2008
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