Promises, promises: Parties start campaign

As Canada braces for an onslaught of political promises ahead of May’s election, all parties will start promising the moon to voters.

On Monday, the Conservatives announced the Family Tax Cut, a plan to allow families to share up to $50,000 of household income with dependent minor children for tax purposes.

One need not wonder too loudly why such a great measure wasn’t included in the March 22 budget: the offer is conditional on the party getting a majority, as the release says it will bring in the measure “within our next full term of office”.

Technically speaking, a full term is five years, so it would probably not come into effect until 2016.

The Conservatives estimate the plan would put an average of $1,300 a year back in the pockets of 1.8 million families. Put another way, it will cost the federal government $2.34 billion.

And in the red corner

For their part, the Liberals have promised to roll back corporate tax cuts, which are slated to fall to 16.5%. The Liberal plan would see corporate taxes remain at 18%.

Other than that, the Grits are limiting themselves to somewhat vague promises they will “restore federal spending discipline” and “make better choices” than the Conservatives

A little to the left…

Not to be outdone, the NDP is promising assistance to small businesses, saying it will “target investment to small businesses and companies actually creating jobs right here at home.”

Details are sketchy, but the NDP is also promising to strengthen pensions, lower the cost of home heating and train more doctors.

Final analysis

You’ve got to hand it to the Conservatives on this one; not only are they offering $1,300 per household to vote for them, but they’re also providing some details—although there’s no word on where they will cut $2.34 billion worth of spending yet.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.