• Health Tax Revenue up 65% in five years
  

TORONTO: The Canadian Taxpayers Federation (CTF) today called on the McGuinty government to eliminate the health tax. The CTF was presenting to the Standing Committee on Finance who are undertaking their mandatory review of the health tax. CTF Ontario Director Kevin Gaudet said, "The health tax is merely a crutch propping up the government's high spending habits. It should be eliminated."

The Health Tax has taken a combined $12.2 billion from the economy since it was created. "That would be enough to build 12 new SkyDomes," said Gaudet. Health tax revenue has grown 65% since its creation, from $1.7 billion in its first year in 2004/05 to a projected $2.8 billion for 2008/09.

In their submission the CTF provided six reasons the health tax should be eliminated:

1. it represents the government's broken Taxpayer Protection Promise not to raise taxes without a referendum;
2. calling the tax a premium is an effort to fool Ontarians into believing they are paying for health care. In reality, the premium goes into general revenue and is merely a tax grab to fund other pet projects;
3. in the last election, 60 percent of Ontarians voted for a party that proposed reducing or eliminating the tax;
4. Ontarians need a tax break, as they have the second highest personal tax burden in Canada at 44.2%;
5. BC is the only other province with a health premium since Alberta recently eliminated theirs; and,
6. 54 percent of Ontario CTF supporters choose tax relief as their first priority for government, ahead of debt reduction at 39 percent. Only 3 percent chose increased spending.

The full CTF submission for the Health Tax Review may be found by clicking HERE.