REGIME CHANGE AND THE 2016 BUDGET (Essay Sample)

REGIME CHANGE AND THE 2016 BUDGET Student name Professor Institution Course Date Title: Regime Change and the 2016 budget Issue: After a decade, the first budget is always an artful document. To some degree, it signals a profound change in the regime while sometimes its design signals that there is nothing to worry much about. The budget appeals to progressives through the introduction of crucial poverty reduction measures that have been anticipated for over forty years. These measures involve improving the access to jobless benefits and simultaneously raising taxes on the one percent so that families with children and seniors are taken care of financially (Patten et al, 2016). The biggest surprise that the new budget came with apart from its purpose to build upon growth is the much-vaunted funds for infrastructure. About the infrastructure, substantial investments will commence within the next two years with a significant portion of the fund set aside to address the long overdue needs of clean water and housing. Talking points: to pass the intended message appropriately, a point of consideration will be explaining the advantages of the budget. The budget benefits taxpayers that pay the most tax through the provision of income tax cuts. The budget applies these cuts for the top thirty percent taxpayers by labelling them middle class. It is, after all, the middle-class population that makes it possible for the country to run. However, a point to note is that the top one percent who have taxable incomes that spill over 217000 dollars lose this benefit because of the new top marginal tax rate. The budget also appeals to those who have held concerns about the increase in runaway federal spending coupled up with reduced federal contribution to the economy of the country. The first fiscal plan that will end between 2020 and 2021 is projected to have one of the lowest rates compared to the previous sixty-five years. It will have a slightly higher percentage of GDP than 2014 which had the lowest GDP in the history of Canada. With these worries, the country needs assurance that the same will not happen. Debt hawks who prey on the nation will no longer have leverage against the country because the new budget provides a fiscal anchor. The anchor takes the form of a promise to reduce the ratio between the federal debt and the GDP to about forty percent within the four years. Even though the deficit will still take time to disappear, it will be a step towards development (Patten et al, 2016). Background: The bu...