The Chartered Professional Accountants (CPA) of Canada said Parliament must show “fiscal discipline” after running up the largest deficit in Canadian history..The CPA of Canada made the submission to the Commons finance committee and advised Parliament to stop the spending, said Blacklock’s Reporter..“Government support to Canadians during the pandemic has dramatically altered its fiscal position,” said the submission..“In Budget 2021 the federal government committed to unwinding COVID-related deficits and reducing the federal debt as a share of the economy over the medium term. However, it does not set a range of limits or targets for that anchor.”.“This approach perpetuates deficit financing and permits larger federal deficits over time, a trend this country can ill afford,” wrote accountants..The net federal debt per capita was confirmed last Tuesday by Statistics Canada showing it hit a record level of $24,074 for every Canadian — an increase of 43% from pre-pandemic levels..Federal estimates of the total deficits since the start of the pandemic are pegged at $511.6 billion, compared to the previous record for a federal deficit spent in 2010 at just $55.6 billion..CPAs advised the finance committee that Parliament must “ensure the sustainability of the government finances and provide confidence to the public, businesses and investors that both the deficit and debt will be addressed.”.Tax increases would be an inappropriate measure, added the submission..“Practice fiscal discipline,” wrote accountants: “It is not an appropriate time to increase personal or corporate taxes.”.While campaigning for the fall federal election, the Liberal Party proposed $4.2 billion in new taxes including raising tax rates for large corporations. In an August 25 campaign document, the Liberals also proposed an increase in the corporate tax rate from 15% to 18% on banks and insurers with revenues over one billion per year. A dividend of an unspecified amount was also proposed for the same institutions “in recognition of the fast-paced return to profitability.”.“This is a responsible platform,” Finance Minister Chrystia Freeland said at the time..“It is a transparent platform. It is one where we really welcome scrutiny.”.Cabinet raised the federal debt ceiling last year by 56%, from $1.168 trillion to $1.831 trillion..Freeland told reporters in October the government needs to be “thoughtful and careful about managing government finances.”.When asked by a reporter if the feds were considering an increase in GST or income tax for regular Canadians, Freeland said, “Plans do not include what you just alluded to.”.Parliament has not balanced a budget since 2007.
The Chartered Professional Accountants (CPA) of Canada said Parliament must show “fiscal discipline” after running up the largest deficit in Canadian history..The CPA of Canada made the submission to the Commons finance committee and advised Parliament to stop the spending, said Blacklock’s Reporter..“Government support to Canadians during the pandemic has dramatically altered its fiscal position,” said the submission..“In Budget 2021 the federal government committed to unwinding COVID-related deficits and reducing the federal debt as a share of the economy over the medium term. However, it does not set a range of limits or targets for that anchor.”.“This approach perpetuates deficit financing and permits larger federal deficits over time, a trend this country can ill afford,” wrote accountants..The net federal debt per capita was confirmed last Tuesday by Statistics Canada showing it hit a record level of $24,074 for every Canadian — an increase of 43% from pre-pandemic levels..Federal estimates of the total deficits since the start of the pandemic are pegged at $511.6 billion, compared to the previous record for a federal deficit spent in 2010 at just $55.6 billion..CPAs advised the finance committee that Parliament must “ensure the sustainability of the government finances and provide confidence to the public, businesses and investors that both the deficit and debt will be addressed.”.Tax increases would be an inappropriate measure, added the submission..“Practice fiscal discipline,” wrote accountants: “It is not an appropriate time to increase personal or corporate taxes.”.While campaigning for the fall federal election, the Liberal Party proposed $4.2 billion in new taxes including raising tax rates for large corporations. In an August 25 campaign document, the Liberals also proposed an increase in the corporate tax rate from 15% to 18% on banks and insurers with revenues over one billion per year. A dividend of an unspecified amount was also proposed for the same institutions “in recognition of the fast-paced return to profitability.”.“This is a responsible platform,” Finance Minister Chrystia Freeland said at the time..“It is a transparent platform. It is one where we really welcome scrutiny.”.Cabinet raised the federal debt ceiling last year by 56%, from $1.168 trillion to $1.831 trillion..Freeland told reporters in October the government needs to be “thoughtful and careful about managing government finances.”.When asked by a reporter if the feds were considering an increase in GST or income tax for regular Canadians, Freeland said, “Plans do not include what you just alluded to.”.Parliament has not balanced a budget since 2007.
