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1st Liberal Budget Gives Canada a $29 Billion Deficit this Year and $118.6 Billion Over 5 Years


DonLever

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13 minutes ago, Grapefruits said:

I was reading about the bail in laws that The Liberals slipped in.  Isn't the just another Greece situation in the making where the banks can seize your bank accounts and issue you shares?

I hadn't heard the term "bail-in" before, so looked it up, in reference to Canada.  Supposedly, it's not as bad as you describe, but it doesn't sound like it does all that much to prevent problems

 

An excerpt from http://www.theglobeandmail.com/report-on-business/ottawa-clears-up-confusion-over-bank-bail-in/article10697667/:

Quote

“The bail-in scenario described in the Budget has nothing to do with depositors’ accounts and they will in no way be used here,” Finance Minister Jim Flaherty’s press secretary Kathleen Perchaluk said in a statement Tuesday. “Those accounts will continue to remain insured through the Canada Deposit Insurance Corporation, as always.”

The confusion stems from the fact that a “bail-in” can take many forms. Typically, it refers to funds that a bank draws upon to stabilize itself in a crisis – funds that come from within the organization itself. And it differs from a bail-out, in which the bank receives emergency capital from an outside source, such as the government.

It sounds like the plan is to force banks to be more responsible, so that if things turn as bad/worse than it was a decade or so ago, that they will be in a better shape.

 

Who knows, it might work, but I don't feel terribly confident in the plan.  If the banks have these sources of capital set aside, and then end up having to use them in a crisis, mass liquidation of assets can amplify the crisis.  I'm not at all saying it is worse than a bailout, as I don't think bailouts are the way to go, at the least not ones sponsored by government.

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This budget is complete crap. Disgusting.

 

I do not see anything that really helps the middle class. Not a damn thing in the budget would benefit me, either. On top of that, the deficits are 3x more than what was promised during the campaign. How the hell could you trust this government if they overshot by such an amount?

 

The actual amount on infrastructure spending is nowhere near enough. Where is the plan for economic growth and job creation? In bad times like these, you should get your fiscal house in order. Not to take on a mountain of debt that will skyrocket over the next few years. Also, how will the government pay for this? Expect some tax hikes.

 

It sounds like Trudeau is spending way too much on special interest groups. One &^@#ing billion dollars for Syrian refugees? This country is on the path to bankruptcy. What a joke.

 

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22 hours ago, van_ws said:

This budget is complete crap. Disgusting.

 

I do not see anything that really helps the middle class. Not a damn thing in the budget would benefit me, either. On top of that, the deficits are 3x more than what was promised during the campaign. How the hell could you trust this government if they overshot by such an amount?

 

The actual amount on infrastructure spending is nowhere near enough. Where is the plan for economic growth and job creation? In bad times like these, you should get your fiscal house in order. Not to take on a mountain of debt that will skyrocket over the next few years. Also, how will the government pay for this? Expect some tax hikes.

 

It sounds like Trudeau is spending way too much on special interest groups. One &^@#ing billion dollars for Syrian refugees? This country is on the path to bankruptcy. What a joke.

 

It's important that we clean up our international reputation.  Spending to house refugees is infinitely better than the previous government who insisted on wasting our tax dollars to bomb the crap out of foreign lands.   

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  • 7 months later...

So here is today's update on the Liberal budget ... gets even worst.  This kid PM is spending like his rich dad is going to cover his line of credit!   Except it will be my kids and grandkids ... or the next Conservative government that will inherit a trillion dollar debt!

 

But the Liberals don't want you to worry about the deficit anyway. They'd prefer to focus on other big numbers — most particularly, on this day, an additional $80 billion for infrastructure over the next 12 years.  That amounts to an expansion of the Liberals' campaign commitment of an extra $60 billion over the next 10 years.

 

 

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3 minutes ago, Neversummer said:

So here is today's update on the Liberal budget ... gets even worst.  This kid PM is spending like his rich dad is going to cover his line of credit!   Except it will be my kids and grandkids ... or the next Conservative government that will inherit a trillion dollar debt!

 

But the Liberals don't want you to worry about the deficit anyway. They'd prefer to focus on other big numbers — most particularly, on this day, an additional $80 billion for infrastructure over the next 12 years.  That amounts to an expansion of the Liberals' campaign commitment of an extra $60 billion over the next 10 years.

 

 

 

You can't compete on the global stage if your country has a weak infrastructure.

 

Say what you want about Liberal spending, but infrastructure spending in this country is long overdue. You can only neglect it for so long.

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5 minutes ago, DeNiro said:

 

You can't compete on the global stage if your country has a weak infrastructure.

 

Say what you want about Liberal spending, but infrastructure spending in this country is long overdue. You can only neglect it for so long.

We will be neglecting it for decades in the future while our grandkids will be paying of this clowns debt.

 

 

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4 minutes ago, Ryan Strome said:

We will be neglecting it for decades in the future while our grandkids will be paying of this clowns debt.

 

 

 

This country will have quite a bit of debt regardless if it doesn't start getting it's resources to market in an efficient way. Infrastructure is part of that.

 

I know everyone wants to blame the Liberals for this countries problems, but they started way before Trudeau entered office a year ago. Stephen Harper failed on every front to make this country a world player in the energy sector, and now our economy is suffering for it.

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1 minute ago, DeNiro said:

 

This country will have quite a bit of debt regardless if it doesn't start getting it's resources to market in an efficient way. Infrastructure is part of that.

 

I know everyone wants to blame the Liberals for this countries problems, but they started way before Trudeau entered office a year ago. Stephen Harper failed on every front to make this country a world player in the energy sector, and now our economy is suffering for it.

Please don't talk to me about energy. 15 plus years in the game. You live in a province that staunchly opposes getting oil to market. 

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1 minute ago, Ryan Strome said:

Please don't talk to me about energy. 15 plus years in the game. You live in a province that staunchly opposes getting oil to market. 

 

No we opposed a pipeline that didn't make sense both on the route it went, and the benefit vs cost for us. There's a big difference.

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Just now, DeNiro said:

 

No we opposed a pipeline that didn't make sense both on the route it went, and the benefit vs cost for us. There's a big difference.

The premier felt the price was right. That's fine, B.C's number one industry is tourism, it should do well while Alberta is hurting(not saying the pipeline would make a difference)with low oil prices. 

 

Btw I'm born and raised in the Okanagan.

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On 26/03/2016 at 4:06 PM, King Heffy said:

It's important that we clean up our international reputation.  Spending to house refugees is infinitely better than the previous government who insisted on wasting our tax dollars to bomb the crap out of foreign lands.   

The last war Canada had any major involvement in was Afghanistan. The Liberals under Chretien sent us there.

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Just now, Ryan Strome said:

The premier felt the price was right. That's fine, B.C's number one industry is tourism, it should do well while Alberta is hurting(not saying the pipeline would make a difference)with low oil prices. 

 

Btw I'm born and raised in the Okanagan.

 

The pipeline was also viewed as a threat to that tourism industry by many people here. The benefit vs cost just wasn't there for us.

 

I don't know about you, but if we're running a giant pipeline through our province, the benefit needed to be greater than simply boosting Quebec and Ontario's equalization payments.

 

If anyone should be taking heat right now it's Quebec, who are blocking the energy east pipeline despite it having huge benefits for them and much less risk.

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5 minutes ago, taxi said:

The last war Canada had any major involvement in was Afghanistan. The Liberals under Chretien sent us there.

Whoa whoa don't use facts.

 

Not to mention JT tripled the amount of troops fighting isis while taking away their air cover. JT also likes sending forces, ships and jets to Eastern Europe.

 

JT and the Liberals sure made heffy look silly.

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3 minutes ago, DeNiro said:

 

The pipeline was also viewed as a threat to that tourism industry by many people here. The benefit vs cost just wasn't there for us.

 

I don't know about you, but if we're running a giant pipeline through our province, the benefit needed to be greater than simply boosting Quebec and Ontario's equalization payments.

 

If anyone should be taking heat right now it's Quebec, who are blocking the energy east pipeline despite it having huge benefits for them and much less risk.

Oh I agree. Denny Coudere(spelling) is a tool. Big surprise another liberal.

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2 minutes ago, DeNiro said:

 

It was part of our duty as a NATO member. Not much choice really.

Tell that to Germany, France and others.

 

Remind us again who sent us to Kandahar? Martin wasn't it? I don't remember many nato members there with us, nor do I remember many nato members in combat missions in that Country.

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Just now, Ryan Strome said:

Tell that to Germany, France and others.

 

Remind us again who sent us to Kandahar? Martin wasn't it? I don't remember many nato members there with us, nor do I remember many nato members in combat missions in that Country.

 

Germany and France both went to Afghanistan in 2001 as part of a NATO coalition. 

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On 3/22/2016 at 1:50 PM, Warhippy said:

The first budget from Justin Trudeau's government finds the Liberals compromising some of their election promises to keep others, laying out a longer and larger string of deficits to begin the kind of long-term investments they say Canada needs.

While the big ticket items match the platform that helped the Liberals win a majority last October, other commitments aren't ready to roll out.

Finance Minister Bill Morneau called the plan "reasonable and affordable," despite the red ink washing across the otherwise sunny tone of his rookie budget.

"Canadians told us two things: they said 'help me and my family' and 'make investments for the future'," he told reporters before delivering his budget speech. 

"What we're also going to do is be prudent along the way."

The budget centres on a suite of moves to help the middle-class Canadians: a focus of Liberal attention for months. A tax cut passed in December lowered the middle-income tax rate by one and a half points and brought in a new top tax bracket for high earners.

New family benefit starts in July

A new tax-free Canada Child Benefit starting July 1 will increase payments for most Canadians with children, simplify the tax codeand offer greater assistance to lower-income families.

It replaces both the income-tested tax-free Canada Child Tax Benefit and the Universal Child Care Benefit, which was taxable.

Families with incomes under $30,000 will receive the maximum benefit of $6,400 per child under six and $5,400 per child between six and 17, a gain of about $2,500 a year per child.

As incomes rise, the benefit will be progressively clawed back, and eliminated entirely for households earning more than $190,000.

The $4.5-billion net cost of the program for the coming year is partially offset by the elimination of the Conservatives' income splitting for families, a measure that would have cost the treasury $1.9 billion.

Tax credits for children's fitness and arts expenses also are being phased out over two years, with maximum eligible expenses cut in half for 2016 and eliminated entirely in 2017.

Billions for infrastructure, Indigenous peoples

The 2016 budget begins fulfilling the Liberal pledge to spend $120 billion on new and existing infrastructure over 10 years.

Phase one will focus immediately on public transit, water and wastewater systems, and affordable housing, something Trudeau himself admitted last week was "unsexy."

Later investments will be "broader and more ambitious," the budget promises, focusing on the government's goal of shifting to a low-carbon economy and positioning Canadian cities to be more competitive internationally.

The budget allocates $8.4 billion over five years to help bring about "transformational change" in the socio-economic conditions of Canada's Indigenous peoples and their communities.

That includes $2.6 billion to improve primary and secondary eduction on reserves. 

A further $635 million over that span will go to improve family and child services, a figure welfare advocate Cindy Blackstock said falls short of the spending necessary to bring services for First Nations children in line with non-Indigenous services.

In the next two years, $500 million has been allocated to improve First Nations housing and another $225 million for on-reserve infrastructure. 

Other funding targets improvements in drinking water and waste management.

EI overhaul, but no corporate tax cut

The budget also takes significant steps to overhaul the employment insurance system, something forecast to cost over $2.4 billion over the next two years.

But it does not change the corporate tax rate for small businesses, a move much-discussed during the fall election campaign. Morneau told reporters Tuesday that what businesses really need is an economy that works, while the middle-class consumers businesses rely on will see their circumstances improve with the budget's measures.

Budget promises big changes for federal bureaucracy

The 2016 budget also:

Increases programs to assist injured veterans, and restores 9 previously closed veterans affairs offices.
Provides new investments to promote scientific research, including a $2 billion fund for post-secondary institutions to modernize their facilities.
Increases Canada Student Grant amounts by 50 per cent for students from low and middle-income families and part-time students.
Rolls out a $2 billion low carbon economy fund, announced earlier this month with Canada's premiers at their meeting to discuss Canada's climate change strategy.
Provides $675 million over five years to "modernize and revitalize" CBC-Radio-Canada.
Boosts the Guaranteed Income Supplement for single, low-income seniors of up to $947 annually.
Funds a $112-million homelessness strategy, as well as funding for new spaces and support for people fleeing domestic violence.
The budget does not, however, provide additional transfers to the provinces to address rising health care costs.

It does reallocate $3.7 billion for large-scale capital spending planned for the Canadian military between 2015-16 and 2020-21, pushing it off to later years. 

The government argues this is not a reduction in the defence department's budget, but a shifting of the spending forward to the years when the military expects to be ready to make these purchases.

Higher deficits throughout mandate

All this spending takes its toll on the budget balance, adding $11 billion to the federal deficit in 2016-17 alone, bringing it to $29.4 billion.

The Liberal election campaign promised modest deficits of $10 billion annually to fund infrastructure spending, with a return to balanced budgeting by the next election, expected in 2019.

No return to black ink is projected in Morneau's five-year forecast.

However, Morneau's budget speech emphasizes that by the time of the next election, Canada's debt-to-GDP ratio, a measure of how affordable Canada's deficit spending is relative to the strength of the economy, should be lower than it is today, albeit only slightly.

The federal deficit calculations, however, are based on economic growth forecasts significantly more pessimistic than an average of private sector forecasts. 

That effectively adds $6 billion to the deficit. 

If the economy does not stagnate or decline further to the extent of these worst-case scenarios, the Liberals could outperform their gloomy deficit forecasts down the road.

 

Where is the marijuana tax money? 

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