MP warns-“Only time will tell"

Liberal Leader's Economic Advisory Committee chairman Kings-Hants MP Scott Brison says only time will tell what the impacts of the budget will be on the economy. “I believe that tax cuts that are focused on low and middle income earners will more likely result in spending than tax cuts for high income earners,” he told The Hants Journal.

He said the budget contains targeted support for low and middle-income Canadians through an expansion of the Child Tax Benefit and the Working Income Tax Benefit. “The Working Income Tax Benefit, which was introduced by the Paul Martin government, has helped many working families and increasing it further will contribute even more significantly to helping make work pay.”

There are also measures in the budget to improve access to financing for Canadian households and businesses, which will be important given the challenges that exist in current credit markets, he said. The proposed Home Renovation Tax Credit, for example, will provide up to $1,350 in tax relief to help families reduce the cost of home renovations.

He added, however, that credit failed to take into account any progressive green initiatives. “It is unfortunate though that this investment was not directed toward the green sustainable economy.”

Brison said the budget does not provide enough improvements to Employment Insurance benefits for Canadians who have lost their job. “It extends EI benefits but fails to extend EI eligibility.”

The additional training delivered through the EI program by the provinces will be allocated based on the share of unemployed persons in a province. “It will be beneficial for workers in those industries hardest hit by the global economic turmoil, such as manufacturing and forestry, as they prepare for careers in other sectors.”

In that sense, he said it will help smaller communities and those workers in manufacturing areas hit by layoffs.

Brison has grave concerns, however, about the likely effectiveness of the government’s proposed infrastructure spending. “The infrastructure funding has so many strings attached that projects and jobs will almost certainly be delayed.”

The previously announced Building Canada Fund had committed $1.5 billion to infrastructure and less than $300 million has actually been spent. “Bureaucracy and cost-sharing requirements will ensure that this spending doesn’t trickle, and probably barely drips, down to municipalities.”

He said the Liberal Party would have preferred to see the government increase the gas tax transfer to municipalities, which would have gotten funds to local governments faster.

Brison said one of biggest failures of the budget was the lack of green vision and investment. “There should have been more incentives for Canadians to green their homes and operations and there should have been more investment in alternative energy production… “These are uncertain economic times and it is important that consumers be responsible and live within their means and not overburden themselves with debt,” he said. “I am also very concerned that the government does not seem to have a credible plan for getting us out of the $85-billion deficit they plan to create over the next five years.”