2010-02 (February)
Blaine Calkins MP Report
February, 2010
Fiscal Responsibility
Governor General Michaelle Jean opens the third Session of the 40th Parliament on March 3rd and the next day, Finance Minister Jim Flaherty takes centre stage when he tables the Federal Budget (March 4th).
Mr. Flaherty has already indicated that this will not be a typical budget. The focus will be on effective implementation of the second phase of the Economic Action Plan; returning to balanced budgets; and building a strong foundation for job creation and economic growth. While this Budget may be short on the usual new programs and spending initiatives, it will not contain any new taxes either.
The Liberals, on the other hand, seem to think otherwise. Liberal leader, Michael Ignatieff has long called himself a “tax and spend” Liberal. He was the first Liberal to propose a carbon tax. He has called for a GST hike. And just last spring, he admitted that he “will have to raise taxes”. Gerard Kennedy, the Liberal MP for Parkdale – High Park recently said that “Canadians are prepared to pay a bit more taxes”.
Our Conservative Government believes the last thing Canadians need is more taxes. We are fighting a global recession and our economic recovery continues, but is fragile. When our recovery is assured, Canada will return to a balanced budget without raising taxes or cutting transfers to the provinces like the Liberals did when they were the government.
To help ensure that more Canadians don’t take on debt they won’t be able to afford should house prices fall or interest rates rise, Finance Minister Jim Flaherty announced prudent measures to protect Canada’s economic recovery. Effective April 19, 2010 the rules for government-backed insured mortgages will:
•· Require that all borrowers meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term. This initiative will help Canadians prepare for higher interest rates in the future.
•· Lower the maximum amount Canadians can withdraw in refinancing their mortgages to 90 per cent from 95 per cent of the value of their homes. This will help ensure home ownership is a more effective way to save.
•· Require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation.
The Government of Canada understands the importance of the mortgage and housing sector to the economy and the country. That’s why we took action in 2008 to limit the kinds of excesses that caused trouble in other countries. As recognized by the International Monetary Fund and others, Canada’s prudent regulation of the financial services industry ensured that we were in a much stronger position to weather the economic downturn.
Once the economy has recovered, it will be essential for government to live within its means. All Canadians have had to make sacrifices over the past year. Families everywhere have had to take a look at their own expenses and set priorities. They expect their government to do the same…and we will. We have a responsibility first and foremost to Canadian taxpayers and must ensure that their money is spent wisely, prudently and fairly – where it will do the most good.
Please contact my Constituency office for assistance or for information on federally related matters, postage free at: #6, 4612 - 50th Street, Ponoka, T4J 1S7 tel: (403) 783-5530; toll free: 1-800-665-0865 or visit my web site: www.blainecalkinsmp.ca
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