Saturday, April 18, 2009

80% of Canadians worse off, since Harper cut the GST

OTTAWA, April 15 /CNW Telbec/ - The Public Service Alliance of Canada is thrilled with the results of a new study proving that public services make a significant contribution to Canadians' standard of living - worth at least 50 per cent of their income.

The study, released today by the Canadian Centre for Policy Alternatives, thoroughly debunks the notion that tax cuts put money in people's pockets. In fact, authors Hugh Mackenzie and Richard Shillington prove that tax cuts actually take money away from most workers and would be better spent by investing in public services for Canadians.

"Quality public services improve Canadians' lives in so many immeasurable ways. But this new study demonstrates the fact that middle-income Canadian families benefit from public services that are worth about $41,000 per year - or 63 per cent of their income," says John Gordon, PSAC's National President.

"Even households earning $80,000 to $90,000 per year enjoy public services that represent half of their income. There is no doubt that the services that PSAC members provide improve the quality of Canadians' lives and communities," says Gordon.

PSAC represents more than 160,000 members across Canada, including 130,000 federal public sector workers. In uncertain economic times, Canadians look to PSAC members, who are on the front lines, helping people access Employment Insurance and making sure that seniors receive their pension cheques.

The study, titled Canada's Quiet Bargain: The Benefits of Public Spending, shows that 80 per cent of Canadians are worse off since the Harper government cut the GST and 75 per cent would be better off if their provincial government had invested in public services instead of tax cuts.

"The Conservative government missed the opportunity to make real changes to the Employment Insurance system and to invest in social infrastructure such as universal child care as part of the 2009 federal budget," says Gordon. "Stephen Harper chose ideologically-minded tax cuts over public spending. And this study proves that we would all be much better off if the federal government had provided real support to Canadians by investing in quality public services."

To read the study, Canada's Quiet Bargain: The Benefits of Public Spending, visit

For further information: or to book interviews: Ariel Troster, PSAC Communications, (613) 292-8363 (cell), (613) 560-4273


Anonymous said...

In any country west of Poland, and in any year before 1991, the news story below would have been "Minister of Finance lies to Canadians."
And the sidebar story would have been "Collingwood Pravda repeats Ministers lies and fabrications to unsuspecting and numeracy illiterates at the local seniors residences."


CAITI said...


Is it any coincidence that the CRAP party and the CARP party are so closely aligned on matters senior and matters financial? Would Manulie, as a major advertiser in all things CARP, have anything to do with that? How about the CARP certified Investment Planning Council Representatives, what ever the hell that is.......given that IPC is owned by Investors Group which is owned by Power Financial which is owned by Power Corporation, which is run by this dude:

High-profile directors and CEOs, meanwhile, had approached Mr. Flaherty personally to express their concerns: Many felt they were being pressed into trusts because of their duty to maximize shareholder value, despite their misgivings about the structure. Paul Desmarais Jr., the well-connected chairman of Power Corp. of Canada, even railed against trusts in a conversation with Prime Minister Stephen Harper during a trip to Mexico, and told him he should act quickly to stop the raft of conversions, according to sources.

Anonymous said...

Of the 20 to 21 households (seniors known to me) absolutely no gain from
splitting. In the other there was a benefit of ~ $30. That is now gone (cancer).

In last election in response to hit taken by seniors as a result of I/t reversal.

Reply was very earnest (( hey I am PM and economist to boot))

paraphrase -- We introduced pension splitting for seniors --

Later in a major media article in review of Harper's record

"very lucrative pension splitting benefit"