Taxes And The National Debt

This article talks about how the Conservatives in Canada are planning to lower taxes and at the same time, lowering the national debt. The plan is to pay off the net debt in 15 years and the savings from the interest would be used as tax cuts. This plan drew criticism from the Liberals and NDP because they say the net debt is calculated differently and is a lot smaller then the federal debt. The Conservatives also are saying the government surplus will increase and the money will be used to make Canada's debt smaller. The Conservatives say the tax cut will give people a reason to work harder and it will be a reason for skilled workers to stay and to come to Canada. The NDP have a problem with the Conservatives plan because they say they are neglecting the daily lives of Canadians by focusing on the national debt. While the Conservatives say they will be increasing the amount of money put into infrastructure and will be giving more money to universities and colleges. Net debt is calculated by taking Canada's debt and subtracting Canada's assets from it, the net total will be the net debt.
The Conservatives are planning to reduce the net debt, which in turn will lower interest payments, which in turn will be used to lower tax percentages. A big source of this net debt are governments borrowing money from citizens and companies in and outside the country. They do this because most citizens don't know about it and it looks better then increasing the tax percentages. They say the interest payments that they'll no longer have to pay will lead to tax cuts, but with Canada using a progressive tax, will the tax cut benefit the rich or the poor. Lowering tax percentages in a progressive tax system for low income families will not cost the government a lot of money, which means many businesses and high-income families may receive the benefits of the tax cuts. This plan may work if Canada's economy is booming but if Canada's economy starts slumping, will the government keep borrowing and increasing the net debt or will it increase tax revenues.
This topic is very important to the youth of Canada because once teenagers like me enter the working world, will we be receiving these tax cuts? I am willing to pay higher taxes as long as the government reduces the debt, which in my opinion will benefit us in the future. I predict the national debt will slowly be reduced, but factors such as the slumping American economy will slow down the national debt being reduced.

http://www.cbc.ca/cp/business/061123/b112357A.html