TORONTO: The Canadian Taxpayers Federation (CTF) reacted to the Ontario government's announcement that the province shifted from deficit-spending to recording a small surplus. Final figures for the 2005/06 budget report a $298-million surplus. In March, the Liberal government predicted another deficit of $1.4-billion.

"The province of Ontario is finally out of the red and that is certainly good news. Unfortunately, Premier Dalton McGuinty resolved the deficit problem on the backs of hardworking taxpayers," said CTF Ontario director Neil Desai. "If the premier wants to improve the outlook for families and the province, his government's top priority should be to repeal the infamous health tax."

The province collects $2.35-billion a year from the health care tax. The tax was introduced in the 2004 Budget shortly after the Liberals came to power. Taxpayers remember that Mr. McGuinty broke his solemn pledge made to the CTF - and to voters at-large - not to raise taxes or run budget deficits.

"Taxing more and spending more is not a formula geared to economic growth," noted Desai. "This surplus is a sign the government should focus on lowering the tax bite. Premier McGuinty now has an opportunity to repeal the health tax. Should he not do so, taxpayers will continue to be deeply skeptical of the man who pledged to not raise taxes and did so anyways."