I ran mortgage calculations again. The federal debt keeps growing. To completely pay off the debt starting January 2006, it would have required starting with a $17.4 billion surplus. All that would have to be applied to the principle of the debt. Then the total of interest plus that payment to principle would be fixed every year, just like the mortgage of a house. So as the balance of the debt comes down, interest charges come down. For every dollar of interest, the payment to principle increases by the same dollar, so the total mortgage payment remains the same. Just like a house mortgage. That would take 16 years to pay off the debt starting from budget March 2005. Since the "status quo" surplus for 2005/06 was $17.4 billion, if we just continued it would have taken 15 years from January 2006.
In 2011 I recalculated. Some portions of the debt have been renegotiated, reducing interest. That sounds good, but the total mortgage payment can't be too low or it'll take longer to pay off. Because the debt was larger and interest rates were lower, we would have had to start with a $24 billion surplus. Spending in 2011 was still very high, so the remainder of 2011 would have been spent cleaning up Harper's mess. Then 15 years to pay off the debt starting January 2012.
Now today. I recalculated. Based on the "Federal Debt" published in this year's budget, it would require $32.3 billion to pay it off in 15 years. That's 15 years starting this coming New Year's Day, so federal income tax would no longer be deducted from your paycheque effective January 1, 2031. But again, that requires starting with a $32.3 billion annual surplus. And starting this New Year's Day. Since this year's budget is teetering between $1.4 billion surplus and $1 billion deficit, that would require 1/4 of the annual surplus for January 1st to March 31st 2016. That would give 2015 an $8 billion surplus. That would require *HUGE* spending cuts.
If we start with a $24.7 billion surplus, again starting this coming New Year's Day, then it would take 18 years to pay off the debt. So that means no income tax from your paycheque effective January 1st 2034. You would still file an income tax return in 2034, because that would be for taxation year of 2033. But that would be the last tax return you ever file.
Every year we run a deficit, the debt gets larger. As the debt gets larger, the surplus to start a repayment plan gets larger, and the length of time to pay it off gets longer. And that's from the time we start; the sooner we start, the sooner we finish. Every year we don't pay down the debt is another year we have to pay income tax.
Now Trudeau is talking about running deficits until 2019.
And Harper claims he wants to balance the budget, but he's the one who ran us into deficit. According to Jim Flaherty's first budget, the status quo surplus for 2005/06 was $17.4 billion. That budget stated his intent to reduce the surplus to $8.0 billion; not by cutting taxes, but just by increasing spending. The final actual figures for that year were in the Auditor General's report, and published in the 2007 budget. Spending for 2005/06 increased by $13.9 billion. The surplus was smaller, but not that small. The reason the surplus wasn't reduced to $3.5 billion was Canadians worked harder and paid more taxes than anyone estimated.
Now Mulcair is claiming a balanced budget the first full year he's in power. He said 2015/16 is Harper's, but the 2016 budget will be balanced. Wait, what? NDP will balance the budget? The NDP? Is this the Mirror Universe?