Whether it’s tax cuts, income splitting, debt reduction or infrastructure and program spending, Macleod byelection candidates disagree on what move the federal government should take as the Canadian economy shows signs it’s heading in a positive direction and the country’s finances are heading back into the black.
Conservative candidate John Barlow defended the Conservative government’s record since the global recession of 2008.
“Canada has weathered that storm perhaps better than any country in the G7, but there’s still some work to be done,” he said.
Once the budget is balanced next year, he said he’d like to see the government use future surpluses to pay down the national debt and bring taxes down further.
A long-standing promise is to bring in income splitting after the budget is balanced. Income splitting would allow spouses to split their income on their tax return to bring the higher income earner down into a lower tax bracket.
The plan has been divisive and has sparked opposition even within the Conservative Party. Former finance minister Jim Flaherty spoke out against it, saying it won’t help most Canadians.
Barlow said income splitting has the potential to do a lot of good for families, but he wants to make sure it’s worthwhile.
“I have to take a little more look at it,” he said. “My concern with income splitting is anytime we have an opportunity to reduce taxes for Canadians, I think that’s a step in the right direction, but I want to make sure that income splitting benefits more than just a few.”
Liberal candidate Dustin Fuller said income splitting is not a bad idea, but what the Conservatives are proposing won’t benefit most Canadians.
“For me, it sounds like it would be a good policy generally speaking, however, study after study, one done by the CD Howe institute, indicates very few people would benefit,” he said.
With the estimated cost of income splitting, Fuller said there are likely better uses for the money.
He said the federal government doesn’t have any plans to invest and address the infrastructure deficit in communities across the country. Fuller said the government should invest in infrastructure now, while interest rates are low.
“Now that we have a balanced budget, what do we have left going into next year, what are we going to do about the deficit in infrastructure?” he said.
Green Party candidate Larry Ashmore said the Conservatives are rushing into balancing the budget without looking at what the affects are. In its work to balance the budget, he said the federal government’s cuts in a number of areas that will cause more harm than good, particularly in Veterans Affairs, infrastructure and First Nations.
Ashmore believes the economy hasn’t turned around as much as Canada has adjusted to the new economic reality.
He said the government needs to look beyond the short-term and look to the green economy of the future.
“We really see this shift happening to a new economy and that’s the green economy, it’s a new area of new opportunity and we’re coming out of an old area of diminishing opportunity,” said Ashmore.
He said tax cuts will help to stimulate the economy, but Ashmore also said taxes can be used to help guide the transition to a greener economy and society.
The Green Party does propose income splitting, and he said it would look to benefit more Canadians than what the Conservatives have proposed.
NDP candidate Aileen Burke said the NDP is opposed to the Conservative’s proposed plan for income splitting. She said it would only help people in upper income brackets.
“Our party has made it quite clear that with details the way they are right now, the proposals only benefit those who are making a significant amount of money,” she said.
Burke said the government needs to use more moderation as it works to balance the budget.
“You can’t just cut services to balance the budget, you have to find a middle ground where you’re still able to provide services for everybody while still maintaining a manageable debt load,” she said.
Once the budget is balanced, Burke said the government needs to find a way to manage spending to keep from getting further in debt, while providing services to Canadians.
The party is proposing job creation tax credits and targeted incentives for small and medium size businesses to increase employment and spur the economy.
Christian Heritage Party candidate David Reimer said the government needs to cut waste and mismanagement and his party would also review all Crown corporations and privatize any that have good resale value.
“Government doesn’t do well operating businesses, private corporations do well operating businesses,” he said.
Reimer said his party would also seek to have abortions defunded.
He said his party supports the concept of income splitting, but added the issue still needs to be looked at to ensure the benefits are seen widely among Canadians.
Reimer said his party would have the Bank of Canada make interest free loans to provinces and municipalities for infrastructure projects. He said this would help to address infrastructure needs, without adding to inflation rates.
