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Michael Wilson and the Mulroney government's fourth national spending plan From Wikipedia, the free encyclopedia
The Canadian federal budget for fiscal year 1988–89 was presented to the House of Commons of Canada by finance minister Michael Wilson on 10 February 1988. It was the fourth budget after the 1984 Canadian federal election and would be the last before the 1988 Canadian federal election.
Presented | 10 February 1988 |
---|---|
Parliament | 33rd |
Party | Progressive Conservative |
Finance minister | Michael Wilson |
Deficit | $27.947 billion[1] |
‹ 1987 1989› |
Michael Wilson presented an important reform of the tax system in June 1987.[2] As a result, the budget 1988 did not bring forward important changes to the tax system with a few exceptions:
The budget included changes of rules for associated corporations with a clarification of the definition of associated corporations to prevent multiple use of the small business deduction.[6]
Excise taxes on gasoline and aviation gasoline is increased by $0.01 per litre. The measure was projected to yield $300 million in yearly revenues.[7]
The budget provides for a reduction of $300 million in non-statutory spending for 1989–1990 to keep the deficit in line with the projections made in the June 1987 White Paper on tax reform. These reductions do not affect social programs and transfers to provinces and explicitly excludes Official Development Assistance (i.e. international aid) and the Department of National Defence.[8]
Ed Broadbent, leader of the New Democratic Party joked that the budget was a gift for opposition parties. Broadbent and John Turner, the leader of the Opposition, strongly criticized the increase in gasoline excise tax and the general fiscal policy of the Mulroney government. The NPD leader decried a policy that only benefits high-earners and raises taxes for the middle class and joked that “the only good thing about this budget is that it's almost certain to be the last Conservative budget.”[9][10]
The finance critic and Quebec lieutenant of the Liberal Party, Raymond Garneau blasted the budget as a “a Canada for the rich, but not a Canada for the average Canadian, not a Canada for the poor” pointing that Mr. Wilson increased taxes by $22 billion since 1984.[10]
Quebec's finance minister, Gérard D. Levesque declared he was disappointed that the federal government did not reduce its deficit faster and added that deficit reduction should have been the priority of a budget that was more a track record than a budget. Lastly, the minister expressed his disappointment towards the lack of measures to help families or Quebec's economic development whereas Alberta, Northern Ontario and the Atlantic provinces benefited from significant measures.[11]
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