OTTAWA, ON: The Canadian Taxpayers Federation (CTF) denounced Ontario Premier Dalton McGuinty’s decision to hike personal provincial income taxes by 18 per cent for incomes over $500,000 in exchange for NDP support in the upcoming budget vote.

“Premier McGuinty says he can extract $400 million this year from fewer than 50,000 people, roughly the population of Woodstock,” said CTF Ontario Director Gregory Thomas “These taxpayers already pay more taxes than the bottom five million Ontario income earners combined.”

“Premier McGuinty is taking a page out of Bob Rae’s taxation playbook, and this is going to end poorly for the Ontario economy,” said Thomas.

Thomas pointed out that Bob Rae’s NDP government raised the general income tax rate from 53 to 58 per cent of federal taxes between 1990 and 1993, imposing a surtax of 17 per cent on taxes payable over $5,500 and 25 per cent on taxes payable over $8,000.

“Bob Rae’s tax grabs failed to balance Ontario’s budget – instead we saw bigger deficits and higher unemployment,” said Thomas.

Dalton McGuinty’s health tax was introduced to address a $5.5 billion deficit when he took office. Eight years later, the health tax is bringing in $3 billion and Ontario has a $15.2 billion deficit with record revenue.

“The Premier paid Don Drummond $1,500 a day for his cost-cutting recommendations – he needs to follow more of Drummond’s advice and cut spending, not raise taxes,” continued Thomas. “This tax grab is not going to lower the deficit, it’s going to raise it. It is not going to create jobs, it’s going to destroy them.”

Thomas pointed out that in order to raise $400 million from Ontario’s tiny population of high income earners, their taxes will need to go up more than $10,000 each.

“Why not just tell all these people to leave Ontario,” questioned Thomas. “It’s the same message. High income earners, like doctors or job-creating business owners are not wanted here any more.”’

Ontario’s 1999 Taxpayer Protection Act (TPA) requires parties to officially register their intention to raise taxes with the Chief Electoral Officer during an election, or else hold a referendum on any new taxes or tax increases. Dalton McGuinty famously signed a pledge with the CTF on September 11, 2003 stating that he would respect the TPA. Since then he has repeatedly amended the TPA to grant his government exceptions to it whenever it has been violated.

“As with previous elections, Dalton McGuinty has no mandate under the TPA to raise taxes. If he hikes taxes now without a referendum, he will be breaking the law,” concluded Thomas.