Bottom Line Of Flaherty's Pitch Is Next Election

A nervous Prime Minister would have inflated the traditional fall forecast into a mini-budget laced with election-ready campaign promises. Instead, Harper and Flaherty largely limited themselves to rough outline to be filled in later. Still, politicians are by nature cautious and Flaherty did include a safety net. Starting next year, interest savings generated by reducing the national debt will be passed on as reduced personal income taxes. Flaherty says the Tax Back Guarantee — now doesn't that read like an election ad? — will produce a $700-million windfall in 2007. By 2011, it will be $1.4 billion if Tories are still around and still cutting debt. But four years is forever in politics and it's an open question if the modest dividend from the most recent $13-billion debt reduction will buy many votes. After all, $700 million divided by about 23 million eligible voters comes out at just few pennies more than 30 bucks a ballot. http://tinyurl.com/ymfdj2

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