Cancelled cuts mean $2 billion in extra business income tax, education tax
over next 3 years

Total debt forecast to hit $314.1 billion by 2014-15


McGuinty must deliver wage and pension concessions from government employees

TORONTO, ON: The Canadian Taxpayers Federation (CTF) slammed the 2012 Ontario budget delivered today at Queen’s Park, after the McGuinty government forecast a massive deficit of $15.2 billion, and abandoned promised cuts to income taxes and education taxes for business.



“By taking over $2 billion from Ontario employers in the next three years in the form of higher income and education taxes, the McGuinty government is threatening jobs and threatening our economic recovery,” said CTF Ontario Director Gregory Thomas. “Tax cuts have helped keep Ontario employers in the game in a very tough economy. Breaking the promise on lower taxes sends the wrong signal at a critical time in the recovery.”



Thomas compared Ontario’s $15.2 billion deficit for the coming year to Quebec’s forecast budget shortfall of less than $1.5 billion, and budgets closer to balance in every other Canadian province.



“Once again, Ontario is running a bigger deficit than all the other provinces put together. They’re running a bigger deficit than they ran in 2010. The McGuinty government has failed to control spending. And they need Ontario’s government employee unions to accept a wage freeze even to hit the modest target they’ve set for themselves.



Thomas pointed out that, since the financial meltdown of 2008, Ontario has run $39.6 billion in total deficits, and expects to run deficits totalling $66.5 billion before finally balancing its budget in 2017.



Ontario’s total debt is now expected to hit $314.1 billion by 2014-15, after growing from $162.2 billion in 2007 to $257.5 billion this year.



The CTF applauded the McGuinty government’s plan to rein in its runaway payroll and pension costs, noting that pension expenses for its four biggest plans are slated to rise over half a billion dollars in each of 2012 and 2013 before proposed reforms begin to take effect.

“

We wish the government well in its contract negotiations. It’s fair to say that they have created a monster,” said Thomas