Spending Cuts Saved Canada-Not Higher Taxes

Floor Speech

Mr. WILSON of South Carolina. Mr. Speaker, in The Wall Street Journal, Fred Barnes documented on July 21 that in 1993 Canada faced a fiscal disaster similar to the one we're facing today. Government spending was on the rise, huge deficits were setting peacetime records, the economy was stagnant, an unemployment rate that was around 9 percent with interest payments on debt using 35 cents of every tax dollar.

The newly elected Prime Minister in 1993 listened to the voters by stating, "Canadians have told us they want the deficit brought down by reducing government spending, not by raising taxes, and we agree.''

By cutting spending, the Canadian economy roared back from 1995 to 1998 and turned a $36.6 billion deficit into a $3 billion surplus. The Prime Minister was able to put aside partisan politics and listen to the wishes of the Canadian people.

By leading in a manner that cut spending instead of raising taxes, the Prime Minister put Canada first. Our President should change from his failed policies and stop tax increases and destroying jobs.

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