Chamber bashes federal budget

By RICHARD ROLKE Morning Star StaffMar 21 2007 http://www.vernonmorningstar.com/

The federal government is being accused of leaving businesses and residents sitting on the sidelines. The Greater Vernon Chamber of Commerce is not impressed with the content of Monday’s budget. “There was a lack of an aggressive approach to tax reduction,” said Dawn Lasby, general manager. In terms of the public, the budget provides a tax credit for low-income spouses, while the lifetime capital gains exemption for small business owners will increase from $500,000 to $750,000. But Lasby says there should have been extensive cuts to both personal and corporate taxes as a way of encouraging investment in the economy, while allowing Canadians to have more money to spend. “There’s a massive surplus of $14 billion. With that, we’re surprised they’ve not been more aggressive with taxation.”

Okanagan-Shuswap MP Colin Mayes is confident the budget will support families. “We know they’ve been struggling. We’re allowing Canadians to keep more money in their pocket,” he said. A $2,000 child tax credit will be launched, while the tax credit for low-income spouses and dependents of single parents will climb from $7,581 to $8,929. Liberal candidate Buffy Baumbrough questions the government’s strategy. “I’m surprised so much of the budget is on spending,” she said. “But they’re not putting much back in the hands of individuals through taxation. It’s not a typical Conservative budget.”

The NDP are questioning plans to provide money for new child care spaces when the government previously reduced funding. “It’s not what people had before for child care,” said Cindy Zobac, Okanagan-Shuswap riding association president. Zobac is also not impressed with families receiving $1,000 to get off welfare. “Break that down by 12 months. It’s not very much,” she said. “The budget makes a lot of good sounds but it falls short.” A major thrust of the budget is directing funding to the provinces through equalization payments. “What we have is a budget that will build a stronger Canada,” said Mayes. The Bloc Quebecois has agreed to support the minority government’s budget, meaning there won’t likely be an election. “I find it hard to believe the opposition would bring the government down over this budget,” said Mayes.