OTTAWA, ON: The Canadian Taxpayers Federation (CTF) applauded Ontario Premier Dalton McGuinty for rejecting the NDP’s proposed 18 per cent hike in provincial income tax rates on incomes over $500,000, even at the risk of triggering an election

“Andrea Horwath wants the McGuinty government to do a $570 million tax grab and spend every penny – when Ontario is already running $15 billion in the red this year,” said CTF Ontario Director Gregory Thomas. “We’re witnessing the return of Bob Rae economics to Ontario.”

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,” saidThomas.

Similar results happened when Dalton McGuinty’s health tax was introduced to address a $5.5 billion deficit. 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.

Thomas said Horwath’s tax grab would target roughly 60,000 Ontarians and hike their taxes an average of $10,000 each. It would raise the tax rate on income over $500,000 by two percentage points from 11.16 to 13.16 per cent.

“The NDP wants to nail 60,000 people, a population similar in size to Sarnia, for another $570 million,” continued Thomas

“The top 0.7 per cent of income earners – those earning $250,000 or more, pay 19.9 per cent of all income taxes already.  These 60,000 already pay their fair share of taxes, and more,” said Thomas. “This is a recipe for more unemployment and more vacant factory buildings in Ontario.”