Federal Budget and the Economy

April 14, 2009

Tax hike likely unavoidable, Liberal leader says

Here it comes! The bitter irony is that Ontarions will get a double whammy. For all this so called stimulus, Canadians need to understand that we will be paying much higher taxes for years to come to pay off all this government debt. Its would not be such a difficult pill to swallow if the actions (i.e. stimulus plans actually
benefited Canada)
Simple Question: Are you better off now?

January 28. 2009

As most of us know, a federal spend to stay in power budget was presented yesterday in Ottawa. I have created a chart that reflects some of the main differences between our new so called financial stimulus and the US one:

US	Canada
$275 billion in tax cuts for individuals and businesses.	Increased access to credit
$500 tax break per individual	$76 tax break
Focus is on a green economy	???
$12 billion for mass transit	Incentives to buy cars

Another interesting note, I contacted the so called Economic sustainability committee that is being managed by MPP Frank Valeriote and MPP Gerard Kennedy about why the focus for funding is on traditional manufacturing that is not only in trouble, but has been on the decline in Canada for at least 2 decades. Wanted to know why there isn't any focus on the SMB market (small to medium businesses) that has the following facts:

• Employs roughly 75% of the actual Canadian workforce
• Accounts for 40 - 50% of the Canadian GDP
• Contributes billions for infrastructure improvements (computers, phones etc.)

In my business, I here daily, that the govenment (at all levels)

is fixated on larhe manufacturing organizations

that simply put are become antiquated in Canada

and many may not survive transition from the industrialized

economy to post-industrialized one.



Many SMBs who are thriving would love to expand quicker

and hire more employees but try and get funding (fat chance!)

Why is this???????



Second Point:

Why isn't Canada heavily investing into R&D?  It great to

fill potholes and build roads, but the future suggests we

invest into innovation and yet we have been decreasing

R&D funding support.



According to Canadian Business Mag., finding for Canadian

companies is almost non-existent, we focus on University

research but barely on the commercialization of products and ideas.



Again, I deal with start-ups who are highly innovative with great

ideas and so much intelligence and yet I always see the same thing.

There is little to no support from the government.

Its quite sad when you see our brightest people have to go

abroad to get funding or struggle indefinitely back home.





Bottom line is that there is a significant sector with such high growth

potential that should be getting massive support from the government and

yet it is the antiquated industries that are getting your full attention.

Whether we like it or not, the GMs, Linimar's and WC Woods of the world

will not be the future of economic prosperity. Its those little companies

that start with a great idea that really need our attention.



I have yet to get a response.