Ignatieff in favour of tax cuts

Published Friday January 9th, 2009
A6

HALIFAX - Liberal Leader Michael Ignatieff says if he was prime minister, he would look at giving low- and middle-income Canadians tax cuts to try to jump-start the economy.

Asked at a meeting Thursday with business leaders what an Ignatieff government would do in its first 100 days in power, the Liberal leader said the tax cuts would be put in the hands of people who can make a difference with their spending.

"We may be looking at tax cuts very quickly, targeted at medium- and low-income Canadians, to boost their purchasing power," he said, seated on the stage of the Neptune Theatre in downtown Halifax, where he began a national tour of meetings on the economy.

Finance Minister Jim Flaherty has said his Jan. 27 budget would contain some form of tax cuts for Canadians to spur retail and other spending and get the economy moving again.

Flaherty said spending billions of dollars to build roads and bridges is one way to create jobs and stimulate the economy, but tax cuts are another way of supporting the economy.

Ignatieff wouldn't say what specific tax cuts he would support, but he wants them to be permanent without causing a structural deficit in future federal budgets. He said the Liberals also want "shovel ready" infrastructure projects funded by the federal government to create jobs as quickly as possible.

To achieve that goal, Ignatieff said he would hire a team of people who would call mayors to ask what projects they have ready to go, because the quickest way to spend infrastructure money is through the municipalities.

He also said he would overhaul Employment Insurance to ensure that unemployed people receive their benefits quicker.

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