Winnipeg Free Press

Winnipeg Free Press (Newspaper) - November 24, 1981, Winnipeg, Manitoba 14 Winnipeg free november 1981 up photo provinces Square off finance ministers attack Ottawa proposal to slice Federal Aid Ontario Miller pulls out his and Hopes the Federal government will do the same for the nation budget gets mixed bag of reviews Vancouver up the 12 Federal Bud get received mixed reviews monday qualified Praise from a senior Bank but criticism from the Canadian tax foundations Board of although some parts of the budget warrant a second before they Are most of its intentions Are necessary and Good for Edward senior Vic president and chief economist of the Royal Bank of told the opening session of the annual meeting of the tax but foundation chairman Charles Pelletier told an audience of More than the foundations Board of governors for the first time in its 36year express concern to finance minister Allan Mac Eachen about the Way the government makes tax of particular said was the Lack of Public consultation on major tax changes in the budget roundly criticized the which has been roundly criticized by most groups the wealthy and the poor closed Many of the loopholes that Maceachen said were allowing some wealthy individuals and corporations to pay Little or no Maceachen said that move allowed him to raise tax revenues while reducing the tax Neufeld said Many of the technical changes and tax expenditure changes in the budget rest on Lon term tax and economic he said some of the changes go too far too fast and Are suggested the finance department take a second look at the timing and phasing in of some of the for the budgets limits on interest rate deductions for financing investment along with other tax break re will hamper needed he As the budget should have among other the amount a person can put into a registered retirement savings plan and the an individual May deduct from investment Neufeld that would give canadians a fighting Chance of maintaining the value of past he real culprits on list on the other Neufeld we finally have a budget that recognizes the need to fight inflation and reduce the Federal deficit real culprits on our economic sick he said the budget puts Ottawa taxing and spending policies in line with its inflation fighting tight Money if present monetary and fiscal poli cies there is reason to Hope that the medium term will see a More stable Environ with lower inflation and better real while the rare budget Praise will be welcomed by he will have to contend with unprecedented criticism from the private tax re search groups Board of foundation director Douglas Sherbanuk said in a interview the concerns will be expressed in a sub Mission to Maceachen from the he said the submission will suggest Ottawa seek More advice before making tax changes and not rely As the government now on the advice of a Small group of finance department Halifax up finance minister Allan Maceachen squared off with the provincial finance ministers yesterday Over plans to Cut Federal Aid to the provinces by billion and add con Dit Ioris to the Money left Quebec finance minister Jacques Parizeau led the and it was Clear he was enjoying telling the Federal govern ment it should do its slammed Ottawa for allegedly underestimating the size of the cuts and called Maceachen proposed new equalization formula ridiculous and Ontario treasurer Frank Miller questioned Parizeau sincerity and said the Quebec who is at tending despite Quebec Boycott of most other Federal provincial meet seems to have a vested interest in creating a rift Between Ottawa and the Newfoundland finance minister John Collins whose prov Ince depends heavily on Federal Money said Parizeau calculations were very interesting and new Bruns Wick finance minister Fernand Dube said they deserve to be looked at More All provinces apparently voiced opposition to Maceachen plans to save billion Over the next five years by slowing the rate of growth in the billion Worth of annual transfers Ottawa makes to the Lou come and go at a moments getting up in the missing your strange no one you know in towns a thousand Miles to make it More to give you a Little More for the regular Economy fare you air Canada offers you connoisseur they also rejected Maceachen plan to negotiate the cuts now and set the Over the next year what conditions the provinces must meet to get whats left of the Federal Money destined primarily for hospitalization and pos secondary Maceachen had been hoping to get the negotiations wrapped up in Jan but Parizeau said it could take Miller said he told Maceachen that if Ottawa wants to persist in telling the provinces How to run such provincial programs As i say to them take Back your health care Maceachen appeared unruffled by the attacks or by the fact he had to admit he made a mistake in some of the budget after were launching a Nego and in sure the provinces Are attempting to get the Best possible Maceachen told i would be surprised if they came out and said everything was that would be a reversal of the approach used in Federal provincial Nego much of the Day was devoted to Federal plans to change As of april 1 the system of equalization payments to the have not prov inces Quebec and the four Atlantic the current formula brings the fiscal capacity the capacity to raise Money through taxation to the National per capita the proposed new formula would bring the six provinces fiscal capacity up to that of Miller said he still is disappointed nothing has been done about the enormous fiscal Gap Between the Oil producing provinces and the Wilim porting he said Ottawa should take More of its Energy Revenue and Channel a Large part of it Back into the prov inces such As Ontario which Are paying for these Parizeau said his calculations show that the formula effectively encourages Quebe cers to invest in Ontario rather than their own voice of poor says Galbraith Vancouver up the voice of the poor int being heard in the debate Over economic Canad Anborn economist John Kenneth Gal Braith told an audience of More than tax specialists celebrated american mocked president Ronald reagans economic policies As horseman Sparrow econom if you feed the horse enough Oats something will pass through for the he said in an analogy of the suppl Side economic theory that if you give business tax Breaks and free it from government regulation the Bene fits will trickle Down to anybody who accepts that theory is dangerously open to he said in an address to the three Day annual conference of the Canadian tax foun Galbraith also said governments should place less Reliance on tight Money policies and High interest rates to combat inflation and Start using stronger tax Galbraith mourned the shift away from what he said was the consensus among Industrial countries after the second world War that government had a major role to play in the econ that he was to take the rough Edge off capitalism by pro Viding services the private sector and protecting the individual from circumstances beyond his con the attack on that As reflected in the policies of Reagan and British prime minister Margaret comes from the affluent in especially through their Access to the news and Doest represent the voice of the he its More than drinks and entertainment included in the a Choice of comfortable stereo headsets and the other Perks that airlines offer in their business those Are just things and we have them what we Are interested in is seeing you Home or away in the Best possible with the most the least travel connoisseur service is a recent Survey of Canadian business travellers showed an overwhelming majority using connoisseur service Over other business class it int just the Perks at no extra its the feeling someone wont you come with us you can feel the we know flying Doest always come Pat Jennifer Ryan ;