Mr. Harper, if you can’t pay for it now, you can’t later

Globe and Mail: http://www.theglobeandmail.com/report-on-business/economy/economy-lab/the-economists/mr-harper-if-you-cant-pay-for-it-now-you-cant-later/article1981467/

Liberal leader Michael Ignatieff argued to Stephen Harper before the election that corporate tax cuts should be delayed until government finances improve.

• Since then Harper has  adviced a number of policies that are eliminating income splitting, doubling the tax-free saving limits on tax-free savings accounts and a fitness tax credit. The new program is over costly as it is an ongoing spending that can lead to a disaster, since it can affect Canada’s economy. The Canadian government is planned into a surplus position around 2014-15, where Canada’s economy might be near its peak but at some point there will be another reduction of the government revenues and the programs might become more costly than it would have been. Many are wondering whether the program is affordable during the entire business cycle, then there is no need for a surplus.