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McGuinty Fiddles with Tic Tacs While Health Tax Still Burns

Author: Kevin Gaudet 2007/08/23
They say that a Tic Tac is more than a breath mint. They're right. It's a taxpayer cash mint. The McGuinty government announced last week that it is running a surplus of $2.3 billion. A few days later they made an announcement that they are giving $5.5 million interest-free five-year loan to a US owned, private, global candy manufacturer in Brantford to 'improve its Tic Tac candy production line'. Talk about having your priorities out of order. Instead of doling out taxpayer money in corporate welfare grants, the government should use the surplus to remove the $900 per person health tax they imposed.

Ontario needs a premier who will remove the health tax. Just prior to the last election, Dalton McGuinty signed the Canadian Taxpayer Federation's Taxpayer Protection Promise in which he promised not to raise taxes absent a referendum. He and the Liberal Party of Ontario used this promise as an advertising cornerstone of their campaign. He broke this critical promise in his first budget by imposing the new health tax: the largest single tax hike in the history of Ontario. For this key broken promise, McGuinty should be held to account. Better yet, Ontarians deserve a premier who will promise to reduce their taxes, starting with the hated McGuinty Health Tax.

Mr. McGuinty has made it very clear he opposes any tax relief. Not long ago, just after the last Ontario provincial budget, the Premier rejected the notion of tax relief. He referred to tax cuts as 'shiny trinkets and baubles'. He explained away his opposition to offering tax relief to hard working Ontarians and to deserving Ontario businesses, suggesting that tax relief would put the government into deficit and would take money away from the health care system.

Surprise, surprise, on the eve of an election the money bags are suddenly full and the Premier has gone on a spending bender with an announcement a day, making over $25 billion in new spending promises. Forget boutique tax cuts or meaningful tax relief. Not a single announcement has offered a 'trinket or a bauble' for Ontario taxpayers. Ontarians remain overtaxed: 46% of our income goes to taxes. Individuals need to see a meaningful reduction in their personal taxes, starting with the newest tax of all - the McGuinty Health Tax. As well, businesses need to see an acceleration of the elimination of the capital tax and reductions to the corporate tax rate below 14%.

The McGuinty Health Tax drains from taxpayers' pockets around $2.5 billion every year. This number is very close to the latest announced surplus number. The size of the surplus proves false the premier's argument against axing the tax. There is fiscal room to remove it. What the premier really fears in axing the tax, is that it will deprive him of large pools of cash to try to buy votes in ridings like Brantford with $5.5 million Tic Tac subsidies. It will mean there is less taxpayer money for him to shovel out the door at year-end in slush fund grants like the $1 million given to the Cricket Association.

Ontario voters need to find politicians who will keep the promises they make. They could start by finding those who promise to axe McGuinty's health tax. NDP Leader Howard Hampton would likely keep the promises he makes. He wouldn't sign the Taxpayer Protection Promise. Too bad, but at least he was honest about it, unlike Dalton McGuinty. So far, John Tory is the only one promising tax relief, starting with phasing out the McGuinty Health Tax.


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Franco Terrazzano
Federal Director at
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