FAST - Alternative Provincial Budget2011 FACTS M a r

In fact, the deficits were nomic growth also benefited most from the tax cuts due to government policies: high interest rates and and, not co-incidentally, had the discretionary incomes cuts to corporate and personal taxes, at the federal to buy up the bonds that governments sold to finance level, plus the cuts to transfers to provinces while the tax cuts! the Federal government also downloaded sp. [...] The provincial government tried to reduce and lower taxes also want the government to subsi- the impact on the poor of the increased sales tax dise their expensive pet projects, such as convention with small payments to offset the increased sales centres and professional sports stadia. [...] It is not true that “we all need to tighten our belts” when tax cuts for the Just a few more facts - should we panic because the wealthiest caused so much of our financial problems province has a debt of $14 billion and servicing charg- at the same time that the only increases in tax burden es on it of $1billion? Much of the recent increase in was on the bottom 20 percent. [...] The reserve funds over-taxed (and they are, relative to the rich), the earn interest which lowers the real burden of our debt majority of Canadians are willing to pay more taxes servicing costs. [...] And the bonds that mature this year to fund the government programs crucial to our civil carried higher interest rates – up to 16 percent – than society: health care, education, child care, social as- the new bonds necessary to refinance the old.