Posted by: Tony Carson | 27 September, 2007

The budgetary surplus: gleeful hypocrisy

A sickening handshake when you remember when the Conservatives were all over the Liberals for their “excessive” budgetary surpluses? They couldn’t have been more scathing, more condemning of these unwarranted profits which were obvious proof that Canadians were being over-taxed. That was then, this is now:

That surplus far exceeds the $9.2 billion forecast in the last budget.

It is an embarrassment of riches for the Conservative government of Prime Minister Stephen Harper, which said Canadians were overtaxed when it took office and vowed that there would be no more surplus surprises.

Ottawa’s coffers are swollen by extra personal and corporate income-tax revenue generated by richer profits from a commodity boom.

By law, all this excess cash – $14.2 billion – has been used to pay down Canada’s debt and is not available for spending.

However, the interest savings generated by the debt paydown – a fraction of the overall surplus – will be used to fund tax reductions, as promised by the Harper government.

The surplus hit $13.8-billion and Ottawa ultimately reduced its debt by $14.2-billion last year, the government announced.

The full Globe and Mail story is here: Canada’s National Newspaper:

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