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Conference kaosws::canada

Title:True North Strong & Free
Notice:Introduction in Note 535, For Sale/Wanted in 524
Moderator:POLAR::RICHARDSON
Created:Fri Jun 19 1987
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:1040
Total number of notes:13668

669.0. "Federal Budget" by KAOFS::B_VANVALKENB () Mon Mar 22 1993 12:42

    	Good Day,
    
    My MP recently sent out a flier giving details of federal expenses and
    revenues. His request was simple ..please play the finance minister and
    make whatever changes you would like to the budget.
    
    What was listed were the expenses for last year (broken down into about
    40 groups) and revenues from last year (broken down into about 10
    groups). The only thing that you weren't allowed to change was the
    interest payments on the national debt.
    
    My wife and I spent about 2 1/2 hours working on this thing. A quick
    calculation before we started showed that in order to balance the 
    budget without raising taxes required an across the board cut of all
    expenses (not including interest payments) by some 30 percent !!!!!
    
    I found this incredible. How could the government have allowed things
    to get this bad !!!
    
    What would you be willing to sacrifice to get thing back on track ?
    
    CBC radio...VIA rail...CMHC Housing...Social Security...Health Care...
    
    Would you be willing to pay more taxes to cut the deficit ?
    
    Do you think it should be made law that the budget be balanced ?
    
    
    Brian V
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669.1Cut our services.. not their perks!!!KAOFS::D_STREETVirtue is relativeMon Mar 22 1993 14:1810
    just as a matter of interest, did the operating expenses of the
    government appear as an area that could be cut? You know, like the
    pensions they can get right after quitting politics? The rest of us
    have to wait untill we retire, why not them?? My point is, they ask us
    what to cut, when what I would like to cut most is THEIR waste.
    
    
    							Derek.
    
    (PS. Did anybody catch "Ross the Boss" on TV last night)
669.2here's the numbersKAOFS::B_VANVALKENBTue Mar 23 1993 07:4992
    Here the beef
                                     91-92 budget
    --------------------------------------------------------------------------
    Transfer to persons               million $
    Seniors benifits			18,393
    Unemployment insurance		18,126
    Family allowance			 2,821		not required in 93
    Other				 1,434
    					------
    					40,774
    
    Transfers to other levels of government
    Payments to less wealthy prov	 8,854
    Health				 6,689
    Canada assistance plan		 6,099
    Education				 2,142
    Other				 2,300
    					------
    					26,084
    
    Other transfer payments
    Foriegn aid				 2,787
    Indians and inuit			 2,547
    Job creation and training		 1,951
    Regional/industrial development	 2,002
    Support for farmers			 1,853
    Other				 3,985
    					------
    					15,125
    
    Crown corporations
    CMHC (housing)			 1,904
    CBC					 1,031
    Via rail				   441
    Other				 1,925
    					------
    					 5,301
    
    
    Cost of running government departments
    Agriculture				   878
    Communications			   464
    Employment and immigration		   538
    Environment				 1,000
    External affairs			 1,052
    Industry science technology		 1,243
    National defense			10,948
    National revenue			 2,163
    Public works			   874
    Solicitor general			 2,344
    Transport				 1,266
    Other				 4,317
    					------
    					28,160
    
    Interest on national debt		41,231
    
    					======
    TOTAL SPENDING		       156,675
    
    
    
    Income taxes
    Personal				61,222
    Corporate				 9,359
    Unemployment insurance premiums	15,394
    non resident			 1,261
    					------
    					87,236
    
    Excise and duties
    GST					15,168
    Import				 3,999
    Gas	tax				 3,138
    Other				 2,891
    					------
    					25,196
    
    Other revenue TAX			   273
    Other revenue NON TAX		 9,327
    
    					======
    TOTAL REVENUE		       122,032
    
    DEFICIT				34,643
    
    
    --------------------------------------------------------------------------
    
    
    Brian V
    
669.3A financial messVAOU09::BOTMANPieter Botman - Western Canada DISTue Mar 23 1993 12:4850
    Just giving us the list of how much we paid for which departments isn't
    going to give us a decent indication of whether there was "value
    received for the money".  In an ideal world I would hope to see figures
    related to budgets broken down by sources of costs (especially those
    which can be defined on a per user basis), and revenues (also
    identifying those revenues which come from users), something like this:
    
    Ministry: Dept of Transport
    
    -------- SERVICE ------	Overhead   Cost/User	******REVENUES*******
    ------  PROVIDED  -----      Costs   or Transact'n  Pass Fee Airline Gen'l
    
    Airport Ops (Mirabel)	 $10M	  $25/pass	$12/pass $2M/yr $5M
    	        (Pearson)	 $19M	  $20/pass	$12/pass $8M/yr $7M
    	        (Vancouver)	 $17M	  $21/pass	$12/pass $7M/yr $8M
    
    
    Once this is out into the open, an informed taxpaying public can see
    exactly what it is they are subsidizing with general tax dollars.  The
    argument about how much should the rich taxpayers pay is another story.
    I'm only saying that users should pay their share, and that general
    taxpayers should be able to influence where that line is drawn.  Do not
    think that everything has a direct user value equation, though: I
    don't think drug addicts dying on the street should be subject to the
    "user pay" equation - their treatment is something that all of us wish
    to pay for, because the victims can't pay, because it is the right
    thing to do, and because it will cost us more in the long run to not
    pay.
    
    
    Having said this, how does any taxpayer get "value" from paying the
    interest on the deficit?  Nobody does, or we all do.  We all do, in the
    sense that we are paying interest on things we bought long ago.  We
    might not be receiving any benefit from these things, but man we're 
    still paying for them - big time!  I almost feel like saying we should
    have separate tax payments on the debt.  This will:
    
      o  hammer home to people how much we are all paying in interest,
         and encourage us to get it paid off sooner;
    
      o  reduce the need to slim down other bona fide gov't budgets, which
         would otherwise get forced down to zero;
         
      o  perhaps lead to an emphasis on the deficit - perhaps there will
         be a change of perception, and we will come up with brighter ideas
         for discharging that debt (sell the rest of Air Canada? Sell
    	 Toronto?)
    
    Pieter
    
669.4KAOFS::J_DESROSIERSLets procrastinate....tomorrowThu Mar 25 1993 15:3615
    Altough the debt we all have to pay IS high, we are the beneficiaries
    of the money borrowed.  The biggest single expense of the governement
    is benefits to ALL.  We should ALL start thinking that each time we go
    to the doctor WE ALL pay.  each time we use one or the other of these
    "free" services, someone has to pay and that someone is all of us.
    
    Each time we cheat the governement, we cheat ourselves.  We all have
    the mentality that we should get "our money's worth" so we all cheat on
    our taxes, we all use as much of the services provided as we can and
    after we all complain it's costing too much.  It took 75 years for
    comunism to prove you don't get something for nothing, with socialism,
    it takes a bit longer (if it hides under a capitalist system).
    
    Jean
    
669.5Impeach the LeachesKAOFS::D_STREETVirtue is relativeThu Mar 25 1993 21:3419
     I don't think I want "something for nothing". When I look at the taxes
    I pay in a year (income, pst, gst, municiple,...), I want "something
    for something". That something being a fairly healthy chunk of my
    income. The trouble is, those in power (at all levels of government) can
    only seem to cut the programs that effect the people they are there to
    represent. (I wouldn't insult anyone by saying they are there to serve)
    
     Recently the City of Ottawa had a budget crunch. They figured they
    could save money by closing some outdoor rinks. One councile member was
    on TV saying if they cut the FREE DOUGHNUTS AND COFFEE for the
    meetings, they could save a rink. He then went on to point at a number
    of other reasonable areas that could be cut from the perks given to
    these "politicans". I am sick and tired of them pi$$ing away my money,
    then telling me that there is no money to fund needed programs like
    houses for battered women.
    
    The leaches are not the people, it's the leaders.
    
    						Derek.
669.6POLAR::RICHARDSONSick in a balanced sort of wayMon Mar 29 1993 14:176
    Also, in Ottawa, consider the new "palatial" city hall. No corners cut
    there for sure!
    
    Nuts!
    
    Glenn
669.7KAOFS::J_DESROSIERSLets procrastinate....tomorrowTue Mar 30 1993 14:2130
    Why do you buy car or fire insurance?  Why do United Staters buy
    medical insurance?
    
    My house has never burned,  why should I have fire insurance?
    
    I don't usualy have major operations, why shoud I pay for my 
    neighbor's gall bladder operation?
    
    The answer is very simple, the financial burden is spread over the
    whole population.  Insurance companies don't make much money, 1 or 2%
    at best.  Their calculations are simple:
    
    		claims + administration = premiums
    
    Which is almost the same as taxes, except the "claims" and the
    "administration" have grown faster than the premiums (blame this on
    Adam Smith and the idiots who beleived him).
    
    Claims are now very high because we pay for all sorts of programs which
    are for a minority.  The administration for all these programs are
    sometimes higher than the programs themselves, add the two together and
    wonder of wonder we are in the RED.
    
    How to get out of it?  just stop spending, how? add a symbolic amount
    to each "service" and you will see a sharp drop in it's use, no use for
    a service, the "administration" will wither.  Keep the taxes stable to
    pay for the deficit and in a few years we will be back in the black.
    
    Jean
    
669.8CSC32::S_BROOKI just passed myself going in the other direction!Tue Mar 30 1993 16:5934
>    How to get out of it?  just stop spending, how? add a symbolic amount
>    to each "service" and you will see a sharp drop in it's use, no use for
>    a service, the "administration" will wither.  Keep the taxes stable to
>    pay for the deficit and in a few years we will be back in the black.

I certainly agreed with your analysis up until this bit here ...

Administrators have this uncanny ability to keep their jobs and justify
their e xistence long after the need for them has gone ... a classic
case was described in this story ...

A town was split by a river, and the old bridge was rotten, so the town
decided that it was time to invest in a new bridge.  The town council pondered
how they would pay for the bridge ... rather than tax everyone, 
they decided to place a toll on the users.

So, they hired a tollkeeper, and after 3 months of operation, they found
that they were actually losing money.  So, the council decided that they would 
have to hire a manager to manage the 2 toll keepers.  Well, the bridge tolls
went up to pay for the manager's salary, but they lost even more money.

The council then decided that they would have to set up a bridge commission to
monitor the activities of the manager and tollkeepers.  After 3 more months
of losing even more money, they decided to hire a management consulting company.
Their instructions were to cut the losses ...

The management consultants required that they be held on retainer for this
job for 2 years.  After the contract was signed, the consultants quickly gave 
their first  report ... it containerd 1 line ....

Eliminate the position of tollkeeper.


Stuart
669.9Cushy job...POLAR::ROBINSONPFiscally challengedWed Mar 31 1993 10:056
    
    Stuart, you would'nt be referring to the Autoroute running north of 
    Montreal, would you ?
    
    Many 8*)
    
669.10CSC32::S_BROOKI just passed myself going in the other direction!Wed Mar 31 1993 10:241
Nope ... 'fraid not ...
669.11CSC32::S_BROOKI just passed myself going in the other direction!Wed Mar 31 1993 11:011
Nope ... 'fraid not ...
669.12Say What?POLAR::ROBINSONPFiscally challengedWed Mar 31 1993 11:093
    
    Is there an echo in here?
    
669.13POLAR::RICHARDSONSick in a balanced sort of wayWed Mar 31 1993 12:121
    Nope ... 'fraid not ...
669.14POLAR::RICHARDSONSick in a balanced sort of wayWed Mar 31 1993 12:121
        Nope ... 'fraid not ...
669.15Too Many polticians.SIOG::EGRIMon Apr 05 1993 08:0024
    What about al these wonderful little trips they take? Didn't Brian come
    over here to Ireland to "look for his roots"? Who financed that sojourn
    just so Mulroney could make sure he was really Irish? Half the Irish
    cabinet went over to the States for Paddy's Day, there were only a
    handful of backbencers in O'Connell St. for the parade here in Dublin.
    I don't think too many of them forked out for there own fares.
    
    Which brings me to another question. I am Canadian and have lived here
    for the best part of the last 16 years. I have seen alot of money
    wasted by Irish politicians. This does not mean that I don't think
    Canadian politicians don't do the same (pheww! 3 negatives in the same
    sentence, does it make any sense to you out there?) The Irish
    government represents slighlty over 3 million people, and its Dail
    (Gaelic for "parliament", pronounced "dole") consists of 166 TDs
    (Gaelic for MPs). My question is :
    
    How many MPs are there in Ottawa to represent about 26 million people?
    
    How many MNAs are the in the Quebec National Assembly? That question
    because I am a Quebecer.
    
    Many thanks.
    
    Ted.
669.16POLAR::RUSHTONտ�Thu Apr 15 1993 11:4123
   <<The Irish government represents slighlty over 3 million people, and its Dail
   <<consists of 166 TDs.  My question is :
   << How many MPs are there in Ottawa to represent about 26 million people?
  
    I think it's about 350 MP's for 26 million.  So, if we scale things
    down to a population of 3 million, Ireland should have only about 19
    TD's.  So who's going to pare back?  Fianna Fiall or Fine Gael?
    
    
    <<How many MNAs are the in the Quebec National Assembly? That question
    <<because I am a Quebecer.
    
    Can't answer that accurately, but from what I have seen on television
    of sessions from the National Assembly, it looks like there's over 100
    MNA's.  That's for a population of about 8 million in Qu�bec.  Again,
    if we scale that down to the Irish population, there should only be
    less than 40 TD's.
    
    
    	    Cheers,
    
    	    Pat
    
669.17SIOG::EGRIMon Apr 19 1993 09:159
    Thanks Pat. Of course there's no way that you can realistically scale
    down in either country. Since both governments are committed to
    creating jobs, it only seems logical that they both increase the number
    of government officials and thereby hire more civil servants,
    secretaries, researchers etc. etc. 
    
    That would be one way of easing unemployment, wouldn't it?
    
    Ted.