You’re going to hear from hundreds of individuals and groups asking for more money.
My name is Franco Terrazzano. I’m with the Canadian Taxpayers Federation, and I'm here on behalf of 235,000 Canadian taxpayers asking you to spend less.
I'm here today to say no more spending $8,800 on a sex toy show in Germany. No more racking up nearly six figures on fancy airplane food during a week-long trip. No more giving former governors general a $200,000-a-year expense account for the rest of their life. No more taking pay raise after pay raise while millions of Canadians struggle through a pandemic. No more giving 300,000 bureaucrats a raise while their neighbours lose their job or business. No more giving failing Crown corporations, like the Bank of Canada, millions in bonuses. No more announcing $295 million for the Ford Motor Company, $420 million for Algoma Steel, $12 million for Loblaw, $20 million for Maple Leaf Foods, $110 million for Toyota or $372 million for Bombardier.
Canadians need real relief, but Canadians are paying too much tax because the government wastes too much money. It's no wonder 72% of Canadians say they pay too much tax, according to a recent Ipsos poll released last week.
Fifty-one other national governments cut taxes during the pandemic, or eased the pain of inflation. That includes more than half of G7 and G20 countries. Two-thirds of OECD countries also cut taxes during that time.
While other countries cut taxes, Ottawa sticks Canadians with higher tax bills. The government has increased gas taxes, payroll taxes and alcohol taxes. The government is getting ready to impose a second carbon tax next year through fuel regulations, but Canadians cannot afford higher taxes, and we can’t afford to waste more money covering interest charges on the government’s credit card.
The government isn't scheduled to balance the budget until 2041, under the current trajectory. That's according to recent PBO data. Interest charges over that period will have cost taxpayers $800 billion by 2041. That’s a cost of $18,000 for every Canadian, and it's hundreds of billions of dollars that can’t be used to improve services or lower taxes, because that money is going to the bond fund managers on Bay Street.
There is some good news. The government could balance the budget next year. The government could also reverse its tax hikes. The government can do that by bringing program spending back to the prepandemic and pre-all-time-high levels of 2018-19, adjusted upward for inflation and population growth.
In 2018-19, the government spent more money than it did during any single year during World War II, even after accounting for inflation and population differences. That means the government overspent for years, so finding savings in every area of the budget should be like finding water in the ocean.
Fortunately, we're now hearing the finance minister say that if politicians want to fund new programs and spend more money, they're going to have to find savings in other areas of the budget. Spending buckets of extra cash would only be pouring gasoline on the inflation fire.
We're sure that politicians of all parties would agree with at least some of the savings in the CTF’s 80-page budget submission, and we're happy to work with you on those, because Canadians are struggling. Canadians can’t afford any more taxes or tax increases. Canadians cannot afford to waste more money on interest charges.
Fortunately, the government can provide relief and balance the budget. It will take modest spending restraint.
Thank you.