This is quite interesting, this Globe and Mail Article.
Apparently the Conservative Government is thinking about giving the provinces all federal surpluses past a certain preset point to handle the "fiscal imbalance".
Are they stupid? Do they think that surpluses grow on trees?
You know what you are supposed to do with surpluses, if you are lucky enough to get them? #1 thing I'd do is see if there are places that immediately need some federal investment, then #2 thing I'd do is pay down the debt so that our children don't have to pay as much. If the federal government is totally awash with cash, the #3 thing I'd do is see if there should be some relief to the middle and working class in the form of tax cuts.
The Conservatives should handle the fiscal imbalance with the provinces by working with them on a equalization formula that is sustainable, not by this "give the surplus away" idea.
Final Thought: Maybe this is part of the Conservative plan to increase the power of the Provinces. But this seems like a really silly way to do it.
1 comment:
I have to agree with you.. I think there is a better way.. but this could be a means of bringing public support back up.
Shawn
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