EN FR

Ontario: Taxing Christmas Cheer

Author: Kevin Gaudet 2008/12/22

Andy Williams probably summed up the holiday season best when he said: “It's the most wonderful time of the year.”  However, it’s doubtful Mr. Williams’ joyous outlook would apply to Ontario where the McGuinty government has been hiking everything, from the deficit, to corporate welfare, to even the minimum price on beer.
 
There has been a lot of talk by the chattering classes about what Prime Minister Harper should do to aid the flagging economy.  In an interesting double standard little has been said of what Mr. McGuinty should do.  The largest economic problems are said to be in Ontario after all.  So what is Mr. McGuinty’s solution to the economic woes of Ontario?  So far, he has announced an indeterminate reduction in travel expenses, the spending of a minimum of $1.3-billion for an auto bailout, the appointment of an economic advisory panel, and a hike in the minimum cost of beer.
 
He has announced no plans for tax relief, no tax reforms and no spending reductions.  In fact, the Canadian Bankers Association pointed out that Ontario has some of the highest corporate income taxes in North America at 14 percent.  They had the temerity to argue that corporate tax relief might even keep more financial services job in Ontario.  The Premier rejected their pleas, accusing them of not doing enough to help out.
 
The Premier has tried to look like he is tightening his belt. He announced in November that a plan for restraint and cuts would come “soon.”  Still, Ontarions are waiting for the plan.  He has said he will limit salary growth for MPPs and senior civil servants to 1.5 percent.  A decent start, but this isn’t cutting spending, this is merely limiting its growth.  It’s worth reminding the Premier that the private sector in Ontario already enjoys higher pay than in the private sector.  According to the Canadian Federation of Independent Business, of all the provinces, this gap is largest in Ontario.  There is a $7,000 spread between its public sector’s average salary of $60,656 versus a comparable private sector wage of $53,682 – a difference of 13 percent.  Public sector wages should be frozen.
 
An economic advisory panel has been created with a special seat for the Canadian Auto Workers union so there should be no surprise at the $1.3-billion so far thrown and GM and Chrysler by Mr. McGuinty.  This cash alone will push Ontario towards the $2-billion deficit mark.
 
Ontario, with Canada and the rest of the world watching, will be hosting the World Junior Hockey Championship in Ottawa – Premier McGuinty’s home town.  Normally one would settle down in the comfy recliner, turn on the game and have a cold one.  Well, the cost of this Christmas cheer just went up.
 
In a most un-Canadian move, the minimum cost of a 24 of beer was just hiked by LCBO at the request of the McGuinty government to $25.60 from $24.  This is a direct shot at Lakeport Beer who started the “buck-a-beer”  marketing campaign.  So much for the free market of ideas or the free market of prices in Ontario.
 
This is the time of year for good tidings not ill.  How unfortunate that the only good news taxpayers are getting in Ontario right now comes from the weather network.  But look at the bright side, with our governments giving money to failing companies, a growing deficit and pricier suds, at least we have something other than the weather to complain about for a while.


A Note for our Readers:

Is Canada Off Track?

Canada has problems. You see them at gas station. You see them at the grocery store. You see them on your taxes.

Is anyone listening to you to find out where you think Canada’s off track and what you think we could do to make things better?

You can tell us what you think by filling out the survey

Join now to get the Taxpayer newsletter

Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

Join now to get the Taxpayer newsletter

Hey, it’s Franco.

Did you know that you can get the inside scoop right from my notebook each week? I’ll share hilarious and infuriating stories the media usually misses with you every week so you can hold politicians accountable.

You can sign up for the Taxpayer Update Newsletter now

Looks good!
Please enter a valid email address

We take data security and privacy seriously. Your information will be kept safe.

<