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Deputy Prime Minister Chrystia Freeland speaks at a press conference on May 13 in St. Thomas, Ont. Geoff Robins/The Canadian Press
Duane Green is the former chief executive officer of a Canadian asset management company.
The latest Liberal government budget is a continuation of eight consecutive years of large deficit spending, coupled with a clear tax and spending philosophy. All of this is under the guise of “fairness.” What about economic growth?
I don't understand why we don't think boldly and pursue equity while promoting growth for the benefit of all Canadians. We need to break away from the ideology that fairness is synonymous with raising taxes to increase consumption, which means redistributing wealth.
Criticism of the 2024 Budget has focused primarily on tax increases, which would undoubtedly discourage investment, continue Canada's steep decline in productivity, and hinder the country's ability to develop a viable growth strategy. .
This round of taxes and spending is not surprising. Since 2015, we have seen that fiscal strategy is not the strategy to increase wealth across Canada. Instead, it has focused on creating unexplained deficits by spending money Canada doesn't have and raising taxes on everyone to spend more. This highlights the challenges posed by over-reliance on redistribution at the expense of wealth creation.
I pay taxes to help ensure we have a social safety net for all Canadians, while also helping to ensure Canada invests to grow. But there are real costs to achieving this, and we cannot simply raise taxes and headline spending under the assumption that it will create equity.
Social welfare programs play an important role in promoting social equity, but their effectiveness ultimately depends on sustainable economic growth. Without a vibrant economy that generates sufficient wealth, redistributive measures simply become unsustainable.
The Liberal government of Chretien Martin, when Canada sought to reduce the deficit and balance the budget, is an ideology far removed from today's Liberal government. We will stop politicizing Canada's economic future and consider how Canada can best compete on the world stage while ensuring a strong economy that benefits all Canadians. is needed.
For almost a decade, Canada has seen a shift in fiscal policy, primarily aimed at redistributing wealth. This focus on redistribution coincides with worrying declines in gross domestic product growth and productivity, as data from Statistics Canada and the Organization for Economic Co-operation and Development make clear.
Statistics Canada data since 2015 highlights the country's bleak economic trajectory with sluggish GDP growth. At the same time, productivity growth, a key driver of long-term economic prosperity, has stagnated, and Canada consistently lags behind OECD countries.
There is a correlation between the emphasis on wealth redistribution and the slow pace of economic expansion. High taxes and regulatory hurdles prevent companies from expanding and taking risks, contributing to Canada's slow growth. The economy is in decline, and the emphasis on redistribution creates disincentives for entrepreneurship, investment, and innovation.
Equity does not have to come at the expense of growing Canada's economy, nor do they have to be mutually exclusive.
Attracting and retaining the skilled workers, businesses, and entrepreneurs who see Canada as a great place to invest and live requires developing a sound tax system, creating an environment that encourages investment, and providing regulatory support for economic growth. Governments at all levels will be needed to lower the hurdles. And work.
That means making big, bold, meaningful decisions that protect the country's social fabric while creating a framework for economic growth that increases productivity and competitiveness. Balancing equity and growth requires a readjustment of fiscal policy.
There's no reason you can't have both. The current tax and spending cycle is not what Canada needs. You can't tax your way to prosperity. We must adopt policies that promote both equity and growth, where economic success benefits all Canadians.
