It has been said, this country was founded upon compromise. The British North America Act was not the perfect document; it was a reflection of the compromises our founding fathers made to create the Dominion. Never a leader, nor a follower, Canada has sought the middle road ever since.
Under Jack Layton's leadership, the NDP has embraced this course of action. Support for Paul Martin's government in exchange for a multi-billion dollar social package to assist those most in need. Support for Conservatives economic plan in exchange for EI reform. Compromise on Cabinet positions, as Brian Topp points out, so that the Liberals would be willing to enter into a coalition to topple a Conservative government that was ignoring the recession. The NDP has been running on the idea of making Parliament work for the past few years.
The party has shown its willingness to get things done, to push for results that improves the lives of Canadians. But at what cost to its own credibility as a force of progressive change? According to Bill Curry and John Ibbitson of the Globe and Mail (two journalists not known for writing positive comments about the NDP), the party is willing to support the Conservatives next budget if they are willing to meet the following four criteria:
- Removing the federal sales tax from home heating bills and restoring the EcoEnergy Retrofit program;
- Increasing the Guaranteed Income Supplement for low-income seniors;
- Expanding the Canada Pension Plan;
- Hiring more family doctors.
While the four point budget request is practical, manageable and provide assistance to some Canadians, it is not suggest a greater vision that leaves an NDP mark on the budget. Thanks to the reckless financial management of the Conservatives, we are in a deficit situation where there are few dollars to go around. This is all the more reason why the NDP should be opposed to corporate tax cuts. Canada has spent the past decade plus reducing both corporate and individual taxes. Our corporate tax rate is lower than that of our neighbour and greatest trading partner. Moreover, that very greatest trading partner is showing signs of recovery. Early indicators suggest that Canada's is starting to ship more goods to the U.S. This will improve our U.S.-trade dependent economy.
There is a time and place for tax cuts. Now is not the time. The Canadian economy is currently steady, and set to improve with the southern revival - which suggests that any benefits from new corporate tax cuts will lost. With the improving economic outlook, Canada's revenue for corporate taxes should increase and help to off set our ballooning debt. Such revenue would be valuable in offsetting cuts to social programs to balance the budgets (heck, that revenue would be valuable to pay for all of the jails the Tories want to build). Diminishing tax revenue now would mean that the government would have to look elsewhere to cut in order to balance the budget.
It is not clear what the benefit of new tax cuts would be for corporations. The cynical view is it would help to rationalize the inflated bonuses of corporate management. After so many years of corporate tax cuts, are corporations so hard done by? Would that income not be better used for encouraging more research and development, more job creation, better support for those on EI? Is GM Canada more deserving of a tax break than their workers that they laid off in Oshawa?
With all parties suggesting that they do not necessarily want an election, but only willing to compromise in limited means, the NDP has shown that it has the weakest hand. In this game of chicken, the party willing to compromise on core values will lose.
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