While Obama criticizes the policies put forth by GOP candidates, which include reforming the tax code and cutting corporate taxes, Obama and his Democratic Senate oppose cutting spending and keep calling for the rich to pay their fair share and has no intention of reforming the entitlements. As a consequence the unemployment rate continues to hover close to 9% and the expected GDP growth was below 3% for the last quarter of 2011. In contrast Canada’s Conservative Government is reducing its spending and is calling for further cuts across the government of
5-10% in all departments.
In a keynote address to the Global Economic Forum in Davos, Switzerland yesterday, Stephen Harper cautioned Western governments not to become complacent about their prosperity and make the hard decisions now, rather than being forced into them in the future. During his speech he hinted that changes would be made to Canada’s entitlement programs, in particular to the Old Age Security, which is an entitlement paid by tax revenue and has no contributors. The Canada Pension Plan, which is similar to Social Security, is sound and self sustaining will require no changes.
Prime Minister Harper gave a stern warning to Western economies, including the United States. He said that these economies should not become complacent about their prosperity and make the hard decisions now, rather than being forced into them in the future. Canada’s main stream media picked up only on the hints he gave on pension reform.Canada’s Prime Minister is concerned about the overwhelming debts accumulated by the Western economies, including the United States, which has just raised its debt ceiling to $16.2 Trillion. Nobody knows for sure when this ceiling will be reached, although it could possibly occur before the election in November of 2012. The U.S. Senate has been unwilling or incapable of making the necessary changes to the entitlement programs. Their only solution is to raise the taxes on the rich, which they say have to pay their fair share. Do the research the top 10% pay half of all the taxes, while the bottom half pay no taxes at all. As an example Mitt Romney, has paid 3 Million in federal income tax and donated another $3 Million in charities, overall 40% of his income.
Prime Minister Harper, in his next budget is prepared to make the hard decisions that will, no doubt, be criticized by the main stream miedia and opposition parties. The key to this is sustainability. He has hinted that there will be a 5 to 10% cut across the board in the Public Service and that there will be some pension reform.
He also said that it will not affect the Canada Pension Plan, which he says, is fully funded. kecitizenjournalism.com
To demonstrate that Canada’s policies work, a recent report indicates that Canada’s deficit now stands at $17.9 Billion for the first eight months of this fiscal year, with just three months to go. This compares to a $26 Billion deficit for the same period last year. Canada’s Corporate Tax rate stands at 16% as compared to the 35% in the United States.
Eight months into the fiscal year, the federal budget deficit now stands at $17.3 billion, the Finance Department reported Friday.
That compares with $26 billion for the same period last year.
In November, the excess of spending over revenues grew by $1.9 billion. That was less than half the increase in the $4.5 billion shortfall a year earlier.
The latest accounting shows the deficit is shrinking at a faster rate than expected.
In the recent fall economic update, Finance Minister Jim Flaherty projected Ottawa would be in the red by $32.3 billion. With four months left, the government is on pace to come in with a deficit under $30 billion. CBC.ca
Obama should take a page out of Canada’s book instead of going on the road and condemning policies that work, as he did during the State of the Union Address and his Kansas speech.