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Cuts: Government
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Over nine years the cuts total about 40 percent, while the government estimates that the cost of caring for patients will increase 20 percent. Over the life of the cuts, 77 percent of physicians say they will be forced to limit the number of new Medicare patients they treat.
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On September 26 Stephen Harper’s Conservative government announced a series of cuts totaling $1 billion over the next two years. The cuts were announced on the same day the government made a $13.2-billion payment on the national debt. The cuts affect a vast array of departments but are concentrated primarily on aboriginal programs, skills and literacy training, social policy research, legal assistance and research, and funding for Status of Women Canada.
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The tax cuts caused the government budget deficits. Quite the contrary: Federal revenues rose sharply after the tax cuts, from about $600 billion annually in 1981 to almost $1 trillion annually by 1989 when Reagan left office. While revenues soared, spending went into orbit: Federal expenditures rose from $800 billion to $1.2 trillion by 1989. Congress, in fact, reneged on part of its bargain with Reagan to hold the line on spending. Routinely, his proposed spending reductions were written off on Capitol Hill as "dead on arrival." But in any event, the government got more money than ever [A]fter the tax cuts!
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