The federal budget is being tabled at the end of January and Finance Minister Jim Flaherty has been asking for input from Members of Parliament.  Since I am the representative for Saskatoon-Humboldt, I think that it is appropriate that Saskatoon-Humboldt knows what I have been saying on your behalf.

1.  Tax Cuts:  There is never a bad time to cut taxes and I have been arguing for tax cuts that lower the cost of labour and capital in particular.

Payroll taxes (EI, CPP) are one group of taxes that make it more expensive for companies to retain and hire workers. Instead of going up in the New Year, I would prefer that payroll taxes be reduced in 2009.

I have also been calling for capital gains tax cuts. Historically, on a dollar for dollar basis, capital gains tax cuts have tended to boost economies more than any other tax cut.  While not the most popular politically, reductions in capital gains taxes boost business spending and increase employment faster than almost any other measure.

2.  Spending Reallocation:  I have told the Finance Minister that we, as a government, don’t need to spend more to help the Canadian economy.  In both opposition and in government, I have and will continue to say that there are many examples of government waste.

The government should look at cutting budget grants and programs that do not boost the economy. Subsidies to crown corporations should be cut. Better use of taxpayers’ dollars should be the priority. A deficit is not a good thing. A deficit created by spending that doesn’t create jobs or increase productivity is considerably worse.

However, government spending on useful infrastructure programs could be accelerated. These projects should be brought forward this year rather than in a year or two. Such priorities would increase economic activity during a slow year.

Cutting taxes and reallocating spending should help Saskatchewan miss the recession and will help Ontario recover.

I’m Brad Trost your Member of Parliament in Saskatoon-Humboldt. You can call my office in Saskatoon at 975-6133 or drop by our two offices to visit: Saskatoon Monday-Friday or Humboldt Tuesday and Wednesday. I always appreciate your feedback.