MP Anthony Rota says the Liberals plan to help the middle class and those looking to get there is working.

He’s reacting to Tuesday’s Federal fiscal update, which dedicates about a third of an unexpected windfall from a surprisingly strong economy towards investments, tax relief and new spending on social programs to support children and the working poor.

“There are more Canadians that have jobs, we have the fastest growing economy in the G7,” he says. “We’re investing that money, not only in reducing the deficit for the long-term, but investing it in people now so they can get out and spend money, and keep that growth going.”

The opposition Conservatives say the Liberals should focus on returning the books to balance.

Rota says it’ll happen.

“When you invest in the economy your balance sheet gets better and you can reduce the deficit, but you have to get out there and grow the economy before you get to the balance,” he says.

 

Meantime, the executive director of Low Income People Involvement is welcoming a few initiatives announced in Tuesday’s fall federal economic statement.

First, Ottawa will introduce an enhancement to child-benefit payments, so they start rising with the cost of living two years earlier than initially promised.

LIPI’s Lana Mitchell says anytime a government introduces a cost of living attachment to a program they’re taking it seriously, unlike other announcements in the past.

“We’ve seen where programs get introduced and then they lose their buying power and they’re not paid attention to in the future. It’s a one time political announcement and then they let it go. This is encouraging,” she says.

As well, Finance Minister Bill Morneau said they’re going to bolster the working income tax benefit, a refundable credit aimed at providing relief for low-income Canadians who have jobs and encouraging those who don’t to join the workforce.

Mitchell is pleased.

She says it’s more than necessary and definitely overdue.

“What’s the line that the government uses right now trying to make it to the middle class because there is a whole other sector in there. People who are left out of everything. So this is encouraging. I think this is fantastic,” she adds.

Mitchell also says there was a line about support for the national housing strategy and she likes that.

Morneau’s fall economic statement promises $14.9-billion in fresh spending and tax relief over the next five years, in addition to what was already outlined in the March budget.

The government is also expecting to run hefty, but smaller-than-predicted budget shortfalls, $18.4-billion this year, and a $15.6-billion deficit next year.

(With files from The Canadian Press) 
File photo 

Filed under: federal Fall Economic Statement, MP Anthony Rota