Living beyond our means

[EdCase]

We have to - starting with our PM & FM - get our heads put of our collective backside and face some harsh realities.

Canada's total debt - government, corporate & personal was 313% of 2010 GDP (Bank for International Settlements). This compares with the US 268, Germany 241, Australia 235 & Greece (yes Greece) at 265. We are one of only three OECD countries - the other are the UK & Portugal - that exceed the safe threshold level for all three debt components.

The only thing that has been baling us out is the demand for our commodities, but this may not carry us forward. Global growth is forecast at only 1.4% pa through 2018 and even China will go through some painful readjustment of its growth.

Our governments have got to get serious about responsible financial management and individually we need to get our debt under control.

[Merry]

How about starting by not trying to be the world's policeman and sending our troops overseas to sort out other people's messes?
That would save a pretty penny.

Then, lets stop funding arts programs that are not enjoyed by the masses. How many of us have ever visited the National Art Gallery for example (or even want to)? Those who enjoy that sort of thing should be the ones paying for it. Not the rest of us.

Then, lets reduce the gold plated pensions enjoyed by our past MP's. I don't mind giving them some sort of a pension, but the rate should be a lot less than it currently is.

Let's outlaw charitable giving by ALL levels of government (particularly municipal). I pay my taxes for services such as roads, sewers, healthcare and education, and prefer to decide my charitable giving by myself, thankyou.

Eliminate a lot of the tax breaks available to those who claim to own businesses, when everyone knows those businesses are just tax shelters. This particular form of tax evasion is rampant, yet the government does nothing about it. I'm not talking about people who run legitimate businesses, just those who have so called businesses they operate strictly to use as a tax shelter. Mind you, even those who run legitimate businesses need to be audited a little more often. I have one friend who puts everything from theatre tickets to weekends away through his business in order to reduce tax, and it's not fair to the rest of us that he's allowed to get away with doing that. I have another friend who is retired, but started up a home based business strictly for the tax benefits. These kind of tax avoidance loopholes need to be closed.

And the list goes on, but I think you get the general idea. We need to find a way to get the "pigs away from the trough" if we are ever to be able to "live within our means".

[Imreal]

3 horses and and a chunk of land and you are a "farmer" with all the deductions that go with it. Many many people in Summerland are carrying just enough to maintain farm status. This is just one small town amongst thousands in Canada where this is going on.

Prove it is a legitimate, viable farm, or pay up, you cheap so and so's.

[NAB]

Canadian economic outlooks worsens: OECD report

Excerpts:

The outlook for the Canadian economy has "weakened significantly" for the remainder of 2011 and into next year, says the Organization for Economic Co-operation and Development.


Government cutbacks and a softening job market will likely affect household spending, the report says, as debt levels remain high — about 150 per cent of disposable income — and consumer confidence remains frail.


"Persistence or worsening of global growth prospects and financial-market turbulence may lead to a sharper slowdown in exports, while damaging business confidence and investment. A sharp correction in house prices could further (dampen) consumption," the report says.



As for recommended action in Canada, the report urges the federal government to consider delaying the tightening of spending if economic conditions worsen.


Provincial governments, the report says, should follow the federal example and have an independent group of economic advisers review government budgets and recommend future steps.


And as for the Bank of Canada, the recommendation was simple: Keep interest rates low until at least 2013.


Gross domestic product across OECD countries will decline from 1.9 per cent this year to 1.6 per cent in 2012, before recovering to 2.3 per cent in 2013, according to the report.


Unemployment in the OECD area is also projected to remain high, with the jobless rate staying at around eight per cent through the next two years.

http://www.timescolonist.com/business/C ... story.html

[Ken7]

3 horses and and a chunk of land and you are a "farmer" with all the deductions that go with it. Many many people in Summerland are carrying just enough to maintain farm status. This is just one small town amongst thousands in Canada where this is going on.

Prove it is a legitimate, viable farm, or pay up, you cheap so and so's.

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My understanding was a percentage of your gross income had to be met in order to have the tax breaks....has it changed?