Chapter 4 - Budget invests in Province

http://telegraphjournal.canadaeast.com/opinion/article/557022

Summary

The article begins by talking about how the recession lead to how the global economy has weakened. The Canadian Govonor gave a sigh of relief throughout the country as he pronounced that the government laid an ambitious plan to move the economy forward. Canada's Economic action plan creates jobs, supports families by cutting taxes, and prepares the country for success in the years ahead for strategic investments. The initiative of tax cuts will boost the income and spending to get the country's economic wheels spinning again. The federal government also recognized that each province faces different challenges. They gave new Brunswick a share of 4.5 billion for infrastructure upgrades. New Brunswick will benefit from 420$ million in tax relief for individual and businesses over five years. This year the province will be given 1.7 billion through equalization payments and an increase of 341$ million since 2005-06. The new plan will help New Brunswick emerge from the global recession.

Connections

Canada's economic action plan had tax cuts will put more money back into our pockets. It will boost income and spending to get the economy going again. This relates to social justice as taxes should be equitable. They noticed that the economy had brought people down and so they made this plan to be more "fair" This article relates to equalization payments as the government helped New Brunswick by funding them. The intention is to bring revenues to the levels of Quebec, ontario, saskatchewan, manitoba and b.c. New Brunswick had recieved 4.5 billion for infrastructure projects. With the economy in a recession, the ability to pay taxes are lower. With tax cuts, this increases the ability and the flow of money is higher.

Reflection

The use of equalization payment helps economies in a good way. If the government does this, people will survive by getting jobs. The government invested in new brunswick, and the expected outcome is that people will be able to pay more taxes in the future. The tax relief was beneficial as it was more than 420 million $. This was great as they helped people return to the labour force