A politico for "Thursday/Jupiter": ...a wake up to reality, after the public disillusions of promises by "Jei" Trudeau...!
...this is a full reference of this important wake up article:
...but FIRST DO NOT FORGET "CHRETIEN" and his failed big promises to scrap the GST...!
For a stronger economy, Justin Trudeau’s Liberals should break this campaign promise
Jason Clemens and Niels Veldhuis, Special to Financial Post | November 4, 2015 | Last Updated: Nov 4 10:50 AM ET
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Comment: Let us hope that the new government realizes quickly the difference between campaigning and governing like their Liberals predecessors did in the 1990s.
NICHOLAS KAMM/AFP/Getty Images Comment: Let us hope that the new government realizes quickly the difference between campaigning and governing like their Liberals predecessors did in the 1990s.
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Chretien understood the difference between campaigning and governing. Trudeau should, too
Prime Minister-designate Justin Trudeau led his Liberal Party back from third-party status in Parliament to capture a majority government. Trudeau can learn much from his Liberal predecessor, Jean Chretien, who had three successive majority governments in 1993, 1997, and 2003.
It is in the interests of all Canadians, regardless of political allegiances or philosophical dispositions, that our national government succeed. This is particularly true given the Liberal focus on promoting stronger economic growth.
A critical Chretien lesson for Trudeau is that winning an election is different from governing. Chretien understood this and did not become fixated on checking boxes from the campaign promises contained in the Liberal Red Book. Early on in the first mandate, Chretien realized the need to balance the country’s finances and begin reducing debt, which became the animating goal for his entire government between 1994 and 1997.
Research overwhelming shows that high tax rates influence economic decisions
This almost singular focus on balancing the books meant discarding one of the Red Book’s most prominent commitments —scrapping the GST. It also meant shelving the commitment to a national daycare program. While Chretien was heavily criticized for failing to implement these policies, they in part helped his government achieve an historic set of objectives: balancing the budget, reducing federal debt, and beginning to reduce the most damaging taxes (capital gains, income and business) so as to make Canada more competitive. The balancing of the budget was a critical success for which the Liberals were rewarded with an overwhelming electoral victory in 1997.
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The animating theme of the Trudeau Liberals is to improve economic growth and middle-class economic prospects, though the reality of the latter being a problem is more folklore than reality. Nonetheless, the Trudeau government will be rightly judged against the country’s economic performance.
The Liberal campaign platform has some laudable goals and policies that could lead to improved economic performance. However, one of the worrying policy initiatives, and one that is hopefully de-prioritized, is the raising of the top marginal federal tax rate on personal income from 29 to 33 per cent.
This four percentage-point increase needs to be understood within the context of several provinces having already raised their own top marginal tax rates. For instance, Alberta has increased its provincial tax rate from 10 to 15 per cent. This means the combined federal-provincial personal tax rate in Alberta will increase from 39 per cent to 48 per cent, an increase of 23 per cent. But most provinces will have rates over 50 per cent.
The problem with this policy is that research overwhelming shows that such tax increases and high tax rates influence economic decisions by workers, employers, investors, and entrepreneurs. Their decisions on where to locate, the extent to which they work, their willingness to create or expand businesses, and whether they invest are all influenced in part by the reward they receive from undertaking such activities. By markedly reducing the returns to such activities, the government will create strong disincentives for people to undertake such activities.
Skilled labour, professionals, investors, and entrepreneurs need to be encouraged, not discouraged, from fully employing their talents in Canada, which is the foundation for improved economic growth.
The economic framework of the previous Liberal government, A Plan for Growth and Prosperity, highlighted the importance of lowering — not raising — personal income tax rates on middle- and upper-income Canadians: “Lower personal taxes would also provide greater rewards and incentives for middle-and high-income Canadians to work, save and invest.”
The Trudeau Liberals recognized the power of tax incentives in their own platform by remaining committed to the policy of competitive business taxes, which were started under the Chretien Liberals and continued under the Tories.
There are other policies that are hopefully re-assessed within the framework of pursuing stronger economic growth. Weakening the incentives for work effort, savings, investment, and entrepreneurship while making Canada less competitive, is not the path to stronger economic growth. Let us hope that the new government realizes quickly the difference between campaigning and governing like their Liberals predecessors did in the 1990s.
Jason Clemens and Niels Veldhuis are economists with the Fraser Institute and co-authors of The Canadian Century, which documented the historic reforms of the 1990s.
Terence Corcoran: The Trudeau II coronation is over — now time to face reality
Terence Corcoran | November 4, 2015 10:30 PM ET
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Well, at least the coronation of Trudeau II is out of the way. Now the new young King of all Good Causes will move, accompanied by a 30-member cabinet of diversity and inclusiveness, of young innocents and ancient backroom hackers, to the next phase of what promises to be one of the most painful political adventures in the history of the Dominion of Canada.
Can Prime Minister Justin Trudeau even begin to deliver on his promise to transform the government of Canada into some new shining beacon of openness, collaboration, principle and trust? No, he cannot. Nor can he long continue as the defender of all the shibboleths and empty slogans that still dominate the hackneyed rhetoric and political correctness that animated the Liberals through the election.
The cabinet titles alone reflect vacuous pandering to the false notion that government has the responsibility and capacity to mould and uplift all sectors of society. For starters, the prime minister has assigned himself the role of minister of youth, an undefined job he launched into immediately after taking the oath of office by joining an online Google Hangout for schoolkids.
Being minister of youth apparently doesn’t cover enough youth, and so another cabinet minister has been assigned to the Ministry of Families, Children and Social Development. There’s also a sports minister. In other areas there’s an infrastructure minister, plus a minister of small business, a minister of democratic institutions, and a minister of science — which apparently is to be distinguished from the minister of innovation, science and economic development. The minister of the environment is now also minister of climate change, where it looks like no science is required. The minister of international trade is presumably different from the minister of international development.
Gary Clement/National Post
Gary Clement/National Post
Trudeau declared that “government by cabinet is back” and that the Liberals will make sure “open data and evidence-based policy is at the heart of policy-making.” Cabinet ministers, we are told, will have authority to make some of their own decisions free from the bossy control of the PMO and policy insiders.
This is mostly fantasy. No government can delegate policy-making to individual cabinet ministers. It’s not even clear that, when the crunch comes, cabinet necessarily rules, especially a cabinet as alarmingly devoid of experience and depth as the one Trudeau appointed.
But enough of this. The sooner the Trudeau government can get down to reality-based policies and statements, the better for the government and all Canadians.
Ottawa has been at a standstill for at least a year, smothered in election campaign gibberish, false promises and glib sloganeering. The country is now adrift in fiscal uncertainty and heading into a global climate conference that could saddle Canada with growth-killing and unreachable carbon emissions targets.
One clear sign reality is creeping up on the new government is the climbdown on Syrian refugees. The Liberal promise of allowing 25,000 to enter Canada by the end of the year — an campaign ploy — is gone, suddenly deemed impossible by experts within days of the election. While Europe is absorbing millions of refugees, Canada has yet to set any new targets heading into 2016.
There will be more policy retrenchment in coming months. Among the many major challenges facing Ottawa, none can be resolved with a prime ministerial hug or another round of gender parity.
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Budgets, deficits and infrastructure: imaginary money flew everywhere during the election, but the slowdown in world growth and falling oil and commodity prices mean that Ottawa, the provinces and major cities have less cash to spend on high-profile transportation and other projects. Ballooning deficits and lower tax collections provide a weak foundation for major infrastructure borrowing, not just in Ottawa. Unless care is taken, Canadian governments could soon find themselves back on the debt treadmill.
Tax policy: soak the rich to pay for middle-class tax cuts makes for good election results but bad economic policy. Will Finance Minister Bill Morneau, who might know that gouging Canada’s few high-income earners is economically destructive, have new authority as a free-thinking cabinet minister to tell Canadians he has better ideas?
Climate change: at the United Nations conference in Paris, more than 190 countries and 40,000 bureaucrats and NGO activists will attempt to come up with a plan to control the climate, transfer billions from rich nations to poor, and force Canada to sign on to significant carbon emissions limits. It will be interesting to see what “open data and evidence-based” policy calculations Trudeau produces over the next 30 days when he joins Elizabeth May, provincial premiers and his new green Minister of Climate Change in Paris.
King Trudeau is a charming man who seems to believe his own rhetoric and in his promises. It will be painful to watch if, as seems likely, his rhetoric gets run over by reality.
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...we will always remEMber the Liberals for ever, and not so much the Conservatives and Stevie Harper...!
...Chretien lied on many things as the GST...!
...and now to the contrary, TRUDEAU says they cannot balance the BALANCED BUDGET, but increase the debt, which is catastrophicall for us "poor guys and middle class"...!
...HOW will these sh_it LIBERALS win the following elections of the NEXT CONSERVATIVES BALANCERS...??? A UTOPIA future for CANADA...!