OTTAWA - The federal Conservative government is being tricky and is exaggerating when it boasts that it has cut taxes by almost $41 billion, says the Canadian Taxpayers Federation.
The group says that while the Tories have cut taxes since coming to office 18 months ago, they are inflating the size of those cuts.
"The problem for taxpayers is the amount is not correct and is overstated by at least $8.8-billion,'' federation president John Williamson said.
"In fact, the overall tax burden is decreasing, but not to the extent the Conservatives would like Canadians to believe.''
He claims there is some sleight of hand at work.
"Three tricks were used to arrive at the larger -- and more impressive -- figure. The Conservatives magically credit themselves $500 million for enacting measures announced in the 2005 Liberal budget; they include an income supplement program for the working poor worth $1.2 billion as a tax cut instead of properly classifying it as an expenditure; and mysteriously calculate the 2006 budget's half-point personal income tax increase as a multibillion dollar tax reduction.''
Williamson says the government risks losing credibility over the issue.
"If Canadians cannot trust what politicians tell them about tax and spending levels, their faith in government and its officials will fade. This is never a good thing in a representative democracy.''
He says the government talks about tax cuts, but seems reluctant to go any further, despite large budget surpluses.
The government has been targeting tax relief to various segments of the population, rather than offering across-the-board cuts.
