Saving the Review

This commentary argues that the Social Security Review is in danger of becoming little more than the cuts exercise that its critics have accused it of being from the outset.  The rumoured mega-block fund for federal social transfers to the provinces and likely changes to Unemployment Insurance will bring large cuts in federal social spending.  But it is not possible to invest in a stronger and more effective social security system while at the same time gutting its budget.  Where will the money come from to finance improvements to employment development services, education, supports for families and the other social investments advocated in the federal Discussion paper on social policy reform?

Caledon argues that Ottawa and the provinces must cast their reform net wider to capture the many billions of dollars in tax benefits delivered through the income tax system.  Tax expenditures should be included in budgetary projections and subject to the same scrutiny and evaluation as direct spending programs.  The money required to finance improvements to child benefits child care, training and other necessary social investments can be found by curbing some tax breaks and eliminating others.

ISBN – 1-895796-28-8