Rant about the 2024 Budget

My Rant about the Impact of Canada’s 2024 Budget

The first thing to recognize is that the budget is in fact just a budget of intentions.

The budget is always about tax increases. Every year we get new tax laws that increase the revenue of the Canada Revenue Agency.

Ever wonder why the budget talks so much about taxes? It is because they increase it every year. They will continue to do so until we as a population start to speak up. (LOUDLY)

 Carbon Tax Is Beyond Redemption, the federal government should eliminate the carbon tax because real-world examples show that governments both in Canada and Europe have failed to implement sound, well-designed carbon taxes. Most are not revenue neutral, not imposed uniformly among industries, and remain layered on top of other costly regulations and mandates, negating the theoretical benefits of the tax.

Back to the budget,

Acknowledging the Challenge:

The budget acknowledges the significant challenge Canadians face due to elevated costs for essentials like groceries, housing, and banking fees. The government aims to offer relief through various initiatives, but the effectiveness remains to be seen.

Key Measures and Potential Effects:

• Lowering Everyday Costs: The budget proposes capping bank fees, promoting access to lower-cost financial services, and potentially reducing grocery bills through a National School Food Program. These measures aim to free up some household income directly related to essential expenses.

To me this is an example of the government not understanding that they are not the solution, they are the problem. Get out of the way of businesses, Reduce Red Tape in favour of  Good Customer Service and then we the people will fix our problems with business growth and prosperity.

• Housing Affordability: The budget focuses on increasing housing supply through incentives for developers and facilitating alternative ownership models like rent-to-own. The long-term impact on housing prices is uncertain, but an increased supply could lead to stabilization or gradual decrease. However, the budget doesn’t address short-term affordability issues for renters and first-time buyers.

The budget includes baby steps in the right direction. If the Government would stop seeing housing construction as a cash cow in fees and levies, give the builders real tax savings so that the rewards are worth the risk. There is no legitimate reason to delay permits for years, when we are faced with a housing shortage. How about freeing up government owned land and properties for development. Make it like the government did for homesteaders. We got the land for free so long as we hit our objectives.

What the government could do is invest in land, rezone it with good planning, and offer it free to builders, subject to terms of commitment.

You want builders to construct rental units? Well, Builders won’t build rental units if there is no market or profit or any real incentives to replace all the reasons why not. A big why not is that the pendulum swings so far to the detriment of landlords.  Rent should be controlled by supply and demand not by government meddling. Young people need homes, making permits less expensive and faster would create more homes and rental prices would go down when there is a balance in supply and demand.

If the Government gets out of the way of progress,  rental units will be built. Here in NS we have a rental shortage. That is a guaranteed market for the builders… but only so long as makes 100% sense. Removing obsticles and decreasing taxes will have a trickle down effect and our younger generations won’t have to live in poverty.

• Tax Changes: The budget proposes an increase in the capital gains inclusion rate for high-income earners and corporations. This could generate revenue for the government, but the impact on overall inflation and consumer spending is debatable. Increasing taxes does not build prosperity.

Uncertainties and Potential Risks:

The effectiveness of the budget in curbing the cost of living hinges on several factors. The success of housing initiatives in increasing supply and lowering prices which is yet to be determined.

Additionally, increased government spending could lead to higher inflation if not balanced by economic growth.

Again, government is not the solution, they are the problem, scrap the carbon tax, stop having tax on tax at the gas pumps. Get rid of red tape and focus on incentives and not disincentives.

The government spending that does increase prosperity is spending on infrastructure because it stimulates the economy and creates prosperity.

We need to downsize our government to save costs. Let’s start by stopping the legislature insanity.

If we look at how our government leaders behave in parliament; Canadians can’t help but feel disillusioned and angry at how they spend out tax dollars. This does not look like leaders running a country, it looks like a bunch of buffoons, trying to make the other party look bad so they can get re-elected. When elected they should be working full time to improve the lives of all our citizens, and stop empire building.

The very institution meant to uphold the values of democracy has devolved into a spectacle of partisan theatrics. The sight of their leaders hurling insults and trading barbs leaves a bitter taste in our mouths.

The Government has enough power now that they need more, and they do need to get to work on building our country. The system is nuts when we realize that our politicians who we pay their salaries, spend their time tying to make sure they get re-elected.

Increasing taxes is the opposite of good governance, and taxing the rich is all about votes. Votes are the currency of politics.

Conclusion:

Budget 2024 is a pre election budget, it appears to offer a mix of measures with the stated goal of making life more affordable for Canadians. While some initiatives directly target essential expenses, the long-term impact on housing prices and the broader economy remains to be seen.

To me it is clear that our government does not understand economics, what motivates investors, and that there is a limit to the amount of tax Canadians can pay before just giving up or revolting.

I don’t see how increasing taxation is appropriate at this time in our economy. Taxing the rich may sound wonderful, but the rich are the ones who have disposable income to invest

Look to the south of the US/Canada border. The USA is much more entrepreneurial than Canada for good reason. It is easier and cheaper to do business in the USA.

Only time will tell if the budget strikes the right balance between supporting Canadians and ensuring sustainable economic growth. Don’t hold your breath.

OK… there is some hope in the budget, but what we really need is a complete overhaul of our entire tax system and a government that seems oblivious to real world economics.