Sources of Federal Savings


Sources of Federal Savings

TAX FACT:
Big government deficits were eliminated in the 1990s mostly through big cutbacks in social spending. Low- and middle-income Canadians thus paid the biggest price for balancing the budget.




The federal government balanced its books by cutting unemployment insurance, health care, and other public programs. The soldiers in the "war on the deficit" were thus the working Canadians who need those programs the most. But now the "peace dividend" is being returned to the well-off and powerful in the form of major tax cuts.

Source: CAW Research from Dept. of Finance Canada, "Annual Financial Report."


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