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Harper promises ban on federal tax hikes, touts latest surplus numbers

RIVIERE-DU-LOUP, Que. 鈥 Stephen Harper is making a promise to keep his promise 鈥 and he鈥檚 even locking it up and throwing away the key.
FedElxn Conservatives 20150.jpg
Former Toronto Mayor Rob Ford, right, and his brother Doug attend a rally where Conservative leader Stephen Harper delivered a speech in Toronto on Saturday, Oct. 17, 2015. Canadians will go to the polls in the Federal election Oct. 19.

RIVIERE-DU-LOUP, Que. 鈥 Stephen Harper is making a promise to keep his promise 鈥 and he鈥檚 even locking it up and throwing away the key.

A re-elected Conservative government would introduce so-called 鈥渢ax lock鈥 legislation that would prohibit increases to federal tax rates, Harper announced Friday in Quebec.

鈥淭his new legislation will protect our fragile economy and guarantee reduced taxes and stable incomes for our families,鈥 Harper said.

Thing is, the Conservatives have already promised not to increase taxes.

The gesture is a symbolic one, enshrining in law what Harper has already repeatedly promised, and allowing him to say other parties 鈥 should they form future governments 鈥 would have to break the law in order to raise tax rates.

The Liberals have promised to increase taxes on the wealthiest one per cent, while the NDP want to raise the corporate tax rate.

Another government could also just repeal the legislation.

So if sa国际传媒 finds itself with a minority Conservative government after Oct. 19, would Harper let the other parties topple his new government over it, plunging the country into another election? Harper wouldn鈥檛 say.

鈥淚鈥檓 not going to get into discussing hypothetical situations,鈥 he said with a smile.

The 鈥渢ax lock鈥 鈥 for the benefit of the cameras, Harper illustrated the promise by taking a sign with the words 鈥渢ax hikes鈥 and locking it inside a safe 鈥 is a direct lift from British Prime Minister David Cameron鈥檚 re-election playbook.

It also bears the fingerprints of right-wing campaign consultant Lynton Crosby, who is working with the Conservatives. Crosby is credited with having helped secure victories for Cameron and Australian Prime Minister John Howard.

Harper鈥檚 legislation would prohibit increases to federal personal and business income taxes, sales taxes and 鈥渄iscretionary payroll taxes鈥 such as employment insurance and the sa国际传媒 Pension Plan.

The Conservatives say the law would still allow them to close tax loopholes and address 鈥渢ax avoidance schemes.鈥

Asked if there would be any consequences to a government breaking the 鈥渢ax lock,鈥 Harper didn鈥檛 name any 鈥 beyond the political.

鈥淭here are particular consequences for Conservative governments because people expect Conservative governments in particular to keep taxes down, but when you make a commitment there is a cost to breaking that commitment that鈥檚 very high,鈥 he said.

鈥淚 could cite a former president of the United States around that but I won鈥檛 get into that particular discussion.鈥

That appeared to be a reference to one-term U.S. President George Bush, whose famous 1988 promise 鈥 鈥渞ead my lips: No new taxes鈥 鈥 was broken in 1990, then came back to haunt him in 1992 when he lost to Bill Clinton.

Not surprisingly, Harper made political hay Friday with the Finance Department鈥檚 monthly fiscal monitor, which showed that Ottawa鈥檚 surplus after four months of the 2015-16 financial year was about $5.2 billion.

鈥淲e have yet another contrast between our Conservative economic action plan and the reckless spending promises of the Liberals and NDP,鈥 Harper said.

鈥淲e are well on track for the second balanced budget in a row at the federal level.鈥

Earlier this month, the Finance Department said the government finished the 2014-15 fiscal year with a $1.9-billion surplus, the opposite of the $2-billion shortfall that was predicted in the spring budget.

The 2014-15 surplus ended a streak of six straight deficits under the Conservatives.