When the Facts Change Budget special: When The Facts Change x Gone By Lunchtime
May 22, 2025
Dive into the complexities of a growth budget and its real impacts on society. Explore whether tax depreciation changes really fuel economic growth or just favor certain demographics. The effects of recent budget cuts on youth and the unemployed are scrutinized, raising questions about equity. Also, hear about the influence of global economic fluctuations on local budget decisions and the challenges of balancing fiscal restraint with social responsibility. A critical look at what truly shapes our economic landscape.
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Pay Equity Cuts Fund Tax Cuts
- The government is financing tax cuts by cutting pay equity payments significantly.
- This move removes previously expected government obligations, generating large savings.
Investment Boost's Limited Impact
- The government's "investment boost" yields modest short-term GDP growth but not enough to prevent recession risks.
- Fiscal tightening contracts the economy, reducing government size from 34% to 30% of GDP and relying on private sector growth that isn't materializing.
Tractor Buying Example
- Bernard uses a farm buying a tractor as a simple example of accelerated depreciation's tax impact.
- This illustrates how upfront deductions reduce taxable income, incentivizing business investment.