In response to Denis Lapierre's concern for spending ("MP's comments on spending were concerning," Oct. 28 Gazette): Where does he think the funding for all the government programs come from? If you have a job, look at the deductions –those flagged as income tax, CPP and EI are the revenue for these programs, tax into general revenue as well your employer also pays corporate tax and must match your CPP dollar to dollar and must pay EI back at 1.4 per cent.
If government spending is more than these general revenues, the debt is now globally every Canadian's and we will have to pay interest on this – it’s no different than a credit card, where if you charge more than you can pay off, you pay on interest on the outstanding balance until it’s paid off and this is your personal debt.
With no accounting for funds being disbursed by this government, it has not taken long to hit $343 billion deficit.
So as many are out of work or have reduced salaries, the taxes collected from Canadians is less – so general revenue for programs is less, which means government is either borrowing or spending funds it does not have. Again, debt for all Canadians.
I am not saying some of these handouts were not warranted to assist during early stages of pandemic but it needs to be brought under control and accountability.
As well, all those who received CERB payments need to be aware as Trudeau mentioned briefly each morning – but not expanded on – the payments of $2,000 per month are subject to tax which the CRA did not take off monthly cheques, but come April 2021 at tax time the government is going to want the tax portion back on these funds and this too will go into general revenue for spending, so hopefully people have saved a percentage of those funds or that too will be added to the debt of Canadians.
As for his balance sheet comment, if your liabilities and expenses are more than your income – you have debt. Contrary to Trudeau's comment – the economy will not balance itself with no spending controls.
Kathy Taron, St. Albert
