TORONTO, ON: The Canadian Taxpayers Federation (CTF) is floored by the tax-and-spend budget tabled in Ontario today. The 2014 Ontario budget features new payroll taxes, tax hikes on businesses, increased excise taxes on tobacco and aviation fuel, and the creation of a new personal income tax bracket that will raise incomes taxes on 220,000 people across the province.
“Budget 2014 fails taxpayers on absolutely every measure,” said CTF’s Ontario Director Candice Malcolm. “Massive tax hikes, check. Out-of-control spending, check. Higher-than-projected deficit, check. Record debt, check.”
“Even with the host of new taxes imposed across Ontario, government revenues still cannot keep up with all of the new spending in budget 2014,” continued Malcolm.
Budget 2014 increases spending by $3.04 billion, projects Ontario’s deficit to grow to $12.5 billion, fails to clearly explain how the government will balance its budget by 2017-18, and shows the net debt will inflate to $289.3 billion.
“With more expenditures funded by borrowing and a plan to pay for transit with an undefined 'green bond' borrowing scheme, Ontario has established itself as the Greece of North America,” said Malcolm.
“Despite the 148 per cent tax hike on aviation fuel that will make flying more expensive, this budget encourages more people to buy one-way plane tickets to BC and Alberta,” continued Malcolm.
The budget includes an additional payroll tax with the creation of a mandatory Ontario Retirement Pension Plan that will claw back 1.9 per cent of incomes for both workers and employers. Ontario employers already pay more payroll taxes than other large provinces like Alberta, thanks to the 1.95 per cent Employer Health Tax (EHT).
“Payroll taxes make Ontario less competitive, lead to lower salaries and smaller take-home paycheques for Ontario workers,” said Malcolm. “This new scheme will claw back about $950 per year from the typical Ontario worker.”
“The Wynne government has finally shown its true colours,” continued Malcolm. “A tax-and-spend government racking up debt and shaking down the taxpayer to enable more pet projects and targeted handouts.”
CTF calculates that Ontario’s net debt now increases by $396 per second, $23,782 every minute, and $1.43 million every hour in 2014.
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