OTTAWA, Feb. 5, 2014 /CNW/ - The Canadian Centre for Policy Alternatives
(CCPA) warns a so-called "do-nothing" federal budget is anything but,
and is likely to worsen Canada's slowing economy.
The CCPA's 2014 Alternative Federal Budget (AFB) shows what the federal
government could do if it decided to seriously address Canadians'
largest social, economic, and environmental concerns. It delivers a
plan that would lift 855,000 Canadians out of poverty, reduce income
inequality, boost the economy, lower unemployment to 5.4%—and still
balance the budget one year later than the federal government plan.
"The labour market is much weaker than the federal government would like
us to believe. In fact, only one in five of those who came off
unemployment rolls since September 2009 found a job, and four of five
gave up looking," says David Macdonald, CCPA Senior Economist. "It is
time for the federal government to act to drive down income inequality
and create the new jobs Canadians need."
This year's AFB raises the bar on transparency by providing an analysis
of the distributional and poverty impacts of its tax measures—a first
for any budget. Under the AFB:
The poverty rate for seniors would drop by 46% and child poverty by 26%.
The bottom 60% of Canadian families will see improved incomes from the
AFB's tax measures.
Upper-middle class families would see tax increases of under 2% of their
The top 5% of families would see the largest tax increases (6% of their
family income) as tax loopholes used by the rich are closed.
"Reducing inequality is not only possible, doing so would boost the
economy from the bottom up," says CCPA Senior Economist Armine
Yalnizyan. "Instead, the federal government is pledging to increase
inequality by continued cuts to services in 2014, paving the way for
tax cuts, such as income splitting, that will provide the greatest
benefit to those who need it least."
Concerns about low inflation and a slowing economy need more than a status quo response. The Alternative Federal Budget shows how the federal
government can strike a better balance and deliver substantially
improved services for all Canadians through affordable child care,
expanded health care, and improved infrastructure while still fighting
Alternative Federal Budget 2014: Striking a Better Balance is available on the CCPA website: http://policyalternatives.ca
SOURCE: Canadian Centre for Policy Alternatives
For further information:
contact Kerri-Anne Finn, CCPA Senior Communications Officer, at 613-563-1341 x306.