Even though our national election is in full swing, the Ontario legislature continues in session. There are significant debates taking place at Queen’s Park right now.
This spring, our party has focused on some of the pocketbook issues facing Ontario families. Rising hydro bills, the HST and other high taxes, along with the high cost of gasoline are stretching household budgets to the limit.
Unfortunately, the Dalton McGuinty Liberal government seems oblivious to the economic worries our families are facing. On March 29, the government tabled its provincial budget. It contained no new significant measures to make life easier in Ontario.
In fact, much of the budget speech was an unprecedented and irresponsible attack on the official opposition.
But the most important fact coming out of the budget is Mr. McGuinty has no credible plan to balance it without a massive tax increase. That would come next year – if he is re-elected this fall.
I believe the Liberals would raise the HST between two and five percentage points. It would go from its current rate of 13 per cent to between 15 and 18 per cent. Let’s remember their record. After promising not to raise taxes in 2003, they brought in the health tax, which, in truth, is a brand new provincial income tax. It does not go directly to health care; it goes into the government’s general account.
Then, after promising not to raise taxes in 2007, they surprised us with the HST.
They tell us a one per cent cut to the HST would cost the treasury $3-billion. The deficit this year is projected to be $16.3 billion. That means they are borrowing $1.86-million an hour, every hour, 24 hours a day. And worse, the provincial debt has almost doubled since Mr. McGuinty took office.
All of those numbers add up to one thing: they cannot close the gap without a massive tax increase – a tax increase that Ontario families can ill afford.
Our party is advocating an alternative. We need a new approach that focuses on priorities, identifies savings, and eliminates wasteful spending, instead of knee-jerk tax increases.
Only then can we avoid a pending debt crisis like those of Greece and Portugal. We have to accept our responsibility to future generations. And a better future it will be.
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Wellington-Halton Hills MPP Ted Arnott an be reached at 1-800-265-2366. His website is tedarnottmpp.com.