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Mixed brew for the 'coffee shop' budget

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Author: 
Battle, Ken; Torjman, Sherri; Mendelson, Michael & Tamagno, Ed
Format: 
Report
Publication Date: 
21 Mar 2007

Abstract:

In bringing down the 2007 Budget, the Finance Minister wanted all to know that he had listened to Canadians. He had talked to ordinary people on the streets. He sat down with folks in coffee shops across the country. He crafted the federal Budget on the basis of these conversations. The result is a very mixed brew.

There are several positive measures, most notably the Working Income Tax Benefit, the Registered Disability Savings Plan and the proposed changes to the Equalization program. Other provisions, like the child tax credit, are a large cup of wasteful spending. The funds could have been far better spent on an increased Canada Child Tax Benefit, additional child care spaces or affordable housing. The focus on spending through tax carrots will not create the kind of significant investments required to tackle the country's major challenges, including high rates of child poverty, the inclusion of persons with disabilities and the well-being of Aboriginal Canadians.

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