How Much Is Too Much?
As we conclude another tax season, many Canadians are asking where all their tax money is going. Canadians work hard to pay their taxes and they rightfully expect it to be spent wisely.
The reality is the current government has been spending money at a much higher rate than it collects taxes to pay for it and so our debt keeps increasing. Our national debt has more than doubled since 2015 and now sits at a whopping $2.2 trillion ($2,200,000,000,000).
The problem with a debt so large is that it requires us to pay more in ‘debt servicing’ charges. In 2023/24, we paid $46.5 billion which is 36% higher than the year before.
In fact, we will spend more to carry this massive debt each year than we do on healthcare. We spend $16 billion more on carrying this debt than we do on childcare benefits. Imagine what we could afford if we were not spending that money each year just to carry debt.
Most concerning is the fact that interest payments are up 36%, but revenues are up by just 3%. Canada cannot afford to keep paying out more than it collects – something has to give.
Recent Nanos polling shows 63% of Canadians want the government to lower its expenses. Interestingly, 38% of respondents want the money that would be saved to go toward repaying government debt, while 25% want tax cuts. Only 9% want higher spending and most of this group want higher taxes to pay for it. Only 2% want increased spending through more borrowing.
Canada cannot afford more debt. Nothing will put our precious social programs more at risk than to have them based on a weak fiscal foundation. If Canadians want to ensure our social programs and benefits programs are there when we need them, we need to get our spending under control.
MP – Calgary Confederation Len Webber proudly serves the following Communities: Balmoral, Banff Trail, Brentwood, Briar Hill, Bridgeland, Cambrian Heights, Capitol Hill, Charleswood, Collingwood, Crescent Heights, Dalhousie, Greenview, Greenview Industrial Park, Highland Park, Highwood, Hillhurst, Hounsfield Heights-Briar Hill, Montgomery, Mount Pleasant, Mountview, Parkdale, Point McKay, Queens Park Village, Renfrew, Riverside, Rosedale, Rosemont, St. Andrew Heights, Sunnyside, Tuxedo Park, University District, University Heights, Varsity Acres, West Hillhurst, Winston Heights-Mountview
