Short of capital ideas
Published: Thursday, January 29, 2009
Re: "Ottawa opens tap," Jan. 28.
The budget proves Stephen Harper and Jim Flaherty are out of touch with Main Street Canada. A 15 per cent renovation tax credit will do nothing to clean out the inventory of unsold and foreclosed homes in Canada.
These homes are dragging our economy down. Does Flaherty think I can't already negotiate a 15 per cent discount from a home renovator in this market? The Canadian economy is driven by its natural resources. Dropping the elimination of the income trusts would have driven exploration, it would have helped retirees' RRSPs and would have made money flow in the capital markets. Extending employment insurance does nothing to create jobs.
Job retraining is great, but if nobody is hiring, it does not accomplish anything meaningful. Building community recreational centres does not provide long-term economic benefit, and it will take a year or two to start these projects. Tax savings of an average $300 per year that we won't get until we file our 2009 tax return in 2010 will not encourage Canadians to spend.
Last, there is nothing to encourage corporations to invest in capital goods. Purchases of capital goods drive job creation.
Get capital flowing, let businesses create jobs, assist Canadians in buying homes, give the natural resource sector a reason to drill and invest in capital. It's just common sense.
Thursday, January 29, 2009
Posted by Fillibluster at 9:54 AM