7 March 2008
Toronto, Ontario
Prime Minister Stephen Harper today outlined the Government's balanced approach to fiscal and economic policy in a speech to the Economic Club of Toronto. The Prime Minister noted that over the course of three budgets and two economic statements introduced by the Government and passed by Parliament, roughly half the fiscal allocations for the five years between 2006 and 2010 have gone to tax reduction, with the remainder evenly split between debt paydown and new spending.
"In these uncertain economic times, some are suggesting higher spending, higher debt, business bail-outs or even a return to protectionist trade policies," said Prime Minister Harper. "But that's not what Canada needs, nor is it what Canadians want. They want lower taxes, less debt and carefully targeted assistance that helps workers, families, communities and businesses build a better future."
Noting the federal Government's numerous initiatives to strengthen Canada's ailing manufacturing sector, the Prime Minister challenged provincial governments to do their part by removing capital taxes, harmonizing their sales taxes with the GST, and lowering their corporate tax rate to 10 percent so that Canada's combined federal-provincial corporate income tax rate will be no more than 25 percent by 2012.
"History has proven over and over again that a balanced approach to fiscal policy, based on low taxes, lowering the debt burden and disciplined spending, creates a sturdy foundation for a strong, successful economy," Prime Minister Harper said. "And broader economic policies must be shaped around building strong, long-term fundamentals that are forward-looking, not bailouts of today's problems."
