Posted on 09/27/2007 10:05:58 AM PDT by Squawk 8888
TORONTO - Ottawa reduced the national debt last year by $14 billion, shaving $750 million off its annual interest payments, Prime Minister Stephen Harper said Thursday.
The savings will be passed along to taxpayers in the form of continued cuts to personal income taxes, he said.
There was a time not long ago when 40 cents of every tax dollar in Canada went towards paying down interest on the debt, Harper told a news conference in Toronto.
"Canadians don't want to go back to those days," he said. "They want us to lift the load off our children and grandchildren."
In spite of continued economic challenges, the federal government took in more money than it was expecting, Harper said, and spent less as well - $700 million less than in predicted in the March budget.
The good news is a result of a strong Canadian economy and prudent fiscal management, Harper said.
The announcement comes as speculation about a fall federal election continues to swirl around the coming throne speech, which is scheduled for next month.
It's also a stark contrast for the Conservatives, who as the Official Opposition often hooted in protest when the Liberals posted massive annual budget surpluses.
"We need to be very clear about this: we cannot become complacent about the continued growth of our economy," Harper said.
"The recent volatility in financial markets needs careful management. Some sectors of our economy, like Canada's forestry industry and central Canada's manufacturing sector, are facing tough times."
Harper answered a few questions from the media before abruptly leaving the news conference, leaving his financial deputy to field the rest of the queries.
The NDP has said surplus money shouldn't automatically be earmarked to reduce the national debt.
(((.)))
Paid mostly by U.S.fishermen Canada!
Silly Canadians, American economists believe that debt reduction is bad and paying interest with debt is the real sign of a thriving economy.
The same kind of thinking pervailed in Canada — until the debt almost sank us.
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Since when do US fishermen pay Canadian taxes? Or do you consider US fishermen paying for the Canadian fish that they take inadvertently or intentionally some form of tax?
Seriously, I don’t understand what you are inferring with your comment.
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