Wednesday, January 11, 2006

$3.9 million mistake caused by Liberal policy-on-the-fly

Five and a half million people received tax packages printed prior to the Liberal's desperate attempt in November to preserve their tottering government by pulling tax policies out of their asses. The Liberal's shenanigans will cost the taxpayer $3.9 million dollars.

The federal government will spend about $3.9 million mailing out one piece of paper to 5.5 million people whose tax return packages were printed prior to changes announced in November.

It takes a year for the government to put together tax return packages, says Colette Gentes-Hawn, a spokeswoman for Canada Revenue Agency.

She said 5.5 million packages were ready to mail at the time of the economic statement last fall. That's when Finance Minister Ralph Goodale announced tax changes including an increase in the basic personal exemption and a lower tax rate for the bottom income bracket.
John Williamson, federal director of the Canadian Tax Payers Federation, said "it's a bureaucratic mistake that's happened, but it's happened because the Liberal government made those last-minute tax changes in the November economic update.

"It does highlight the folly, I think, of writing tax policy practically on the back of a napkin just prior to a confidence vote
," Williamson said. "The process was politicized and because of that there's a $4-million correction."


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