The Conservatives have long been the Wal-Mart of Canadian political parties, driven by the mantra “every day low taxes.”

Families with children will next week find themselves on the receiving end of the Harper government’s largesse in the form of $3-billion of enhanced universal child care benefit.

Yet, despite promising $27-billion in tax cuts over the next five years, the Tories find themselves in the uncomfortable position of having been outbid for voters’ affections by Justin Trudeau.

The Liberal leader’s “fairness” plan for middle-class families promises families with two kids earning $45,000 will be nearly $4,000 a year better off than they would be under Stephen Harper’s family tax package.

For a party that has made low taxes its end of the aisle statement, this is a reality that cannot be allowed to stand.

The Conservatives looked at trimming the goods and services tax by another percentage point, but swiftly concluded the $7-billion price tag was too rich.

The chat now is of “other measures”, based on what worked in the 2009 budget. It suggests strongly the Conservative platform will propose to raise the basic personal exemption that allows individuals to earn more before they start paying income tax. That amount was raised to $10,320 in the 2009 budget, from $9,600, and is currently $11,138. The cost of even that minor increase in 2009 — along with small changes to the two lowest tax brackets — was $2-billion a year. Aaron Wudrick at the Canadian Taxpayers’ Federation estimates it would cost up to $289-million for every $100 increase in the basic personal exemption.

Given the parlous state of the public finances in the era of $50-a-barrel oil, it is difficult to see any fiscal room for further cuts.

But we are less than 100 days from a general election — all the party leaders have their heads in the clouds and their feet in the ballot box.

It would certainly make sense from a strategic point of view. Raising the basic personal exemption is the only truly universal tax cut, benefitting all taxpayers and taking many working poor off the tax rolls altogether.

It would provide a suitable riposte to Trudeau’s “fairness” campaign — what’s more fair than a tax cut for everyone?

If nothing else, it would give the Conservatives a justification for running an attack ad, featuring an exchange from the House of Commons in late spring, in which Harper said his tax policy has “helped every single Canadian family in the country.”

The Conservatives probably won’t introduce a $2-billion tax cut just to give them a punchline for an attack ad. Probably

The Liberal leader rose to inform the House that “benefitting every single family is not what is fair.”

The Conservatives probably won’t introduce a $2-billion tax cut just to give them a punchline for an attack ad. Probably.

But there are plenty of other reasons for Harper to want to bring the conversation back to lower taxes — the one topic on which polls suggest he has a commanding lead over his rivals.

Elsewhere, the outlook is gloomy. The New Democrats have just released an excoriating ad that belies their reputation as namby-pamby perennial losers — a rogues’ gallery video of Conservative “corruption and mismanagement” that details the various government scandals involving breach of trust, misleading voters, illegal campaigning, bribery and election fraud. “Have you had enough?” it asks.

The Conservatives have been serial breakers of the 11th political commandment – thou shalt not get caught. If ethics is the battleground for this election, they will soon form a small cluster sitting next to Elizabeth May, next to the interpreter’s box in the House of Commons.

But they’re not dead yet, and if they can turn the conversation to pocket-book issues they may reverse the tide of change.

“People love low taxes,” said one senior Conservative, knowingly.

National Post

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