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PAGE 10 â€" WATERLOO CHRONICLE. WEDNESDAY. MAY 20 Melodee Martinuk Chronicle Staff Federal Finance Minister Miâ€" chael. Wilson‘s first budget has drawn kudos from this city‘s busiâ€" ness community. ‘‘Tough, but fair, and a step in the right direction," is how Waterloo Chamber of Commerce presidentâ€" elect Jim Harper summed up his view of the longâ€"awaited document. "I think our whole outlook this morning is laughing rather than crying ... I think there‘s reason for optimism,‘‘ remarked Chamber manager Peter McFadden. Speaking for a group of local accountants assembled by the Chamber to analyze the budget, Harper said the government‘s apâ€" proach shows that federal politiâ€" cians have listened to calls from the business community for greater freedom. ‘‘This is clearly designed to imâ€" prove the confidence of the business community. All along the governâ€" ment has been saying the recovery has to come through the private sector, and now they‘re saying ‘we‘re going to let business act,‘ * said Harper, an accountant with Thorne Riddell. Of special significance to business he said was Wilson‘s plan to allow Canadians $500,000 in taxâ€"free capiâ€" tal gains in their lifetime, as well as initiatives permitting managers of Registered Retirement Savings Plans to invest in small businesses. He also commended the governâ€" ment‘s decision to refund dollars spent on research and development. ‘For this community it will be terrific â€" with the research Hewlettâ€" Packard, Magna International and Raytheon will do, it will be a real boon," said Harper. Our business community is happy with new federal budget OPEN DAILY 8 A.M. TO 7 P.M. â€",«» BROOK & f RAINBOW TROUT FISHING BEECHWOOD CENTRE 886â€"4412 (corner of Erb at Haliman) MANICURES TROUT HMHATCHMERY Except Mondays by Judy W Speaking generally of the budget, Harper said it was not ‘"nearly as tough"‘ as the politicians had said it would be. While it does include increased federal taxes, and the extension of taxes to a list of new products, which could mean Canaâ€" dians will be paying $400 a year more in taxes, Harper said such measures are a necessary price to pay to reduce the national debt. "We have to start paying for our debts and it has to be done in this generation ... $365 a year is a small investment to make to achieve their objectives in lowering the deficit," he said. "‘I like the fact that the budget had a specific direction â€" that the government would do two things: deficit reduction and put the onus on the private sector to develop this recovery," concluded Harper. Less ‘"enthusiastic‘ about the Tory government‘s first budget is University of Waterloo economics professor Wayne Thirsk, who arâ€" gued" the government ‘‘is fighting the wrong foe." Thirsk maintained that the emâ€" phasis on deficit reduction will not stimulate the investment in the economy needed to create the jobs necessary to put Canada‘s unemâ€" ployed back to work. Instead, he said, by cutting spending and inâ€" creasing taxes, the budget will only throw the economy further out of balance. "I‘m skeptical that the relationâ€" ship between reducing the deficit and business confidence will work the way the government thinks â€" by draining off the purchasing power of young Canadian taxpayers it will only diminish investment. The deâ€" mand just won‘t be there to stimuâ€" late the economy,"‘ Thirsk exâ€" plained. JOARM The 15th & 9th Scout troops will be collecting papers at curbside in the above areas between 6:30 and 9:00 p.m. on May 31st. For your convenience, papers may be dropped off at the Parkminster United Church parking lot [X] between these hours. BOY SCOUT PAPER DRIVE Friday, May 31 6:30â€"9 p.m. Waterioo Chamber of Commerce Peter McFadden (right) brought together a team of six local accountants to prepare an analysis of last week‘s federal budget. Chronicte photo e Consumers will be shelling out an extra two cents a litre for gasoline effective September 3. _ e Effective immediately is a two per cent hike on beer, wine and liquor taxes. These will increase another one per cent in January. _ e Canadians earning $40,000 a year will be paying five to 10 per cent more in taxes, starting July 1. _ _ â€" e Ottawa‘s spending on job creation and training has been trimmed by five per cent to $2.1 billion in 1985â€"86. _ e Contributions to Registered Home Ownership savings Plans have been eliminated, but you have until Deâ€" cember 31 to withdraw money in such plans without a tax penalty. No additional maintenance Approx. 1% year payback on installation Virtually free heat May to October CALL TODAY FOR YOUR FREE ESTIMATE 6 6 AQU A! 9 SUN SYSTEMS USE THE SUN TO HEAT YOUR POOL \ j e In July the federal sales tax will be extended to candy, pet foods, soft drinks, shampoos, soaps, and some energy saving devices. e Federal sales tax will rise by one per cent in January ‘86. c e The child tax credit is increased by $70 a child in the 1986 tax year, and there will be further increases in the following two years. The child tax exemption is reduced to $560 from $701 per child in the ‘87 tax year. _e Approximately 15,000 public serâ€" vants‘ jobs will be eliminated by 1990. e The price of a package of 25 cigarettes will increase 25 cents effecâ€" tive immediately. NO GAS 743â€"1111 ocb sb ui+ Tes c Te is * oo en P e o ie