• Personal tax revenues up 42%, Corporate tax revenues up 58% since 03-04
• Program Spending up 28% since 03-04
• Ontario Debt approaches $150 Billion
• Zero tax relief for middle-income Ontarians

TORONTO - The Canadian Taxpayers Federation (CTF) responded to the 2007-2008 Ontario provincial budget tabled today by Ontario Finance Minister Greg Sorbara. "For a government that promised not to run deficits or raise taxes every year, it is about time they finally balanced the books," stated CTF Ontario Director Kevin Gaudet. "But, they've done it by reaching deeply into the pockets of taxpayers and by failing to hold the line on spending. Ontario is swimming in tax revenue so the books should have been balanced long ago."

Soaring Tax Revenues: Books Should Have Been Balanced Years Ago

Premier McGuinty's Mantra: Spend, Spend, Spend

"Ontario's books have remained in the red for the bulk of this government's mandate because every revenue increase has been met with a spending increase," stated Mr. Gaudet. "The more money Ontario taxpayers have sent, the more the government has spent. Premier McGuinty never met a program he didn't like or a tax he didn't hike".

A Ballooning Debt: Mortgaging Ontario's Future

More bad news for taxpayers is the growth in Ontario's net debt. "Ontario's debt is fast approaching $150 billion. Failing to tackle the debt in a meaningful way ensures that future generations will pay for policy mistakes made today," stated Mr. Gaudet.

Band-Aid Solution for Property Tax System is Not Real Reform

The McGuinty government has recognized that the property tax system in Ontario is badly flawed. The government plans to introduce a four year property value reassessment cycle starting with 2008 assessment values. The assessment increases would be spread equally over the four years and the assessment appeal system would also be reformed. "This is not the real reform that is needed for Ontario's broken property tax assessment system," stated Mr. Gaudet. "This merely delays the pain of a tax increase, and creates a financing plan that continues to overpay the Property Tax Man."

"For years the CTF has been calling on the government to freeze assessment levels to 2003 levels pending real reform of the property tax assessment system. It is a shame that Premier McGuinty waited until the 11th hour to address this longstanding problem," concluded Mr. Gaudet.


For further information please contact Ontario Director Kevin Gaudet at 416-725-0501 (mobile).