(NUPGE) – Today’s federal budget provides further evidence that the Harper government is out of touch and can’t be trusted to help families that are struggling to make ends meet in tough economic times, according to NUPGE National President James Clancy.
“Rather than addressing the priorities of Canadian families this budget continues the government’s ideological obsession with corporate tax cuts and deficit reduction,” said Clancy. “The Conservative government is completely out of touch with the reality facing most Canadians.”
Clancy said the Harper government should cancel its plan for more corporate tax cuts and instead restore tax fairness to the system and invest in the public services families need.
“Corporations have had their taxes cut every year for the last ten years yet low and middle income families have seen their tax rate rise steadily. Tax fairness has been flipped upside down in this country,” said Clancy. “Instead of billion dollar give-aways to corporations, the government should invest the money in the public services that ensure a decent quality of life for all Canadians.”
Clancy pointed out the budget offers little or nothing to create more jobs, strengthen retirement security, reduce health care wait times, improve mental health services, create early learning spaces for children or reduce college and university tuition fees.
“The Harper government just doesn’t get it. During tough economic times, the test of any government isn’t whether it has a plan to balance its books and help corporations, but whether the government has a plan that will help Canadian families balance their books and get the quality public services they need.”
Clancy noted the budget basically ignored the issue of federal transfers to the provinces and make no commitment to increase these transfers. The federal government plays a major role in funding important public services like health care, education and social services through three federal transfers: the Canada Health Transfer (CHT), Canada Social Transfer (CST) and Equalization Program. The current arrangements for these transfers expire in March 2014 and negotiations are underway for new agreements.
“After today’s budget, Canadians should be worried about what the Harper government is planning to do with these federal transfers,” said Clancy. “It looks like they may be planning a repeat of the 1990s when the federal government made severe cuts to transfer payments to eliminate the deficit.”
Clancy expressed disappointment that the government refused to include a ‘Fairness Test’ with the budget which would assess the impact of key tax and spending policies on income inequality.
“The large and growing income gap between the rich and poor in Canada is one of the most important social and economic issues of our time,” said Clancy. “By refusing to adopt a ‘Fairness Test’ the Harper government is clearly saying it doesn’t care about this issue or whether their policies hit the poor and vulnerable the hardest.”
“At the end of the day, this is a budget for Bay St., not Main St.,” said Clancy. “It offers nothing to create jobs, it doesn’t invest in the public services that familes need and it will make the problem of income inequality worse.”