Ontario posting $57-billion in deficits over 7 years
CTV News Video
|
Bill Doskoch
Date: Thursday Mar. 26, 2009 11:39 PM ET
TORONTO Ontario's government is rejigging its tax system while tabling a $100 billion-plus 2009 budget designed to kickstart the economy -- all while hoping things don't get worse.
The budget forecasts a $56.8-billion deficit over seven years as the province grapples with the global economic downturn.
The provincial Liberal government will be largely harmonizing the provincial retail sales tax with the federal GST, but will spend more than $4 billion to ease the transition.
In addition, it will be bringing in some income tax cuts that will supposedly leave lower and middle-income Ontario families better off, according to the 2009-10 provincial budget tabled Thursday.
But the government is also targeting tax relief to corporations.
The government is expecting to take in $64.8 billion in tax revenue in 2009-10, compared to $65.4 billion in 2008-09.
The biggest single change is the harmonization with the federal five per cent GST in July 2010, which the government says will improve the system's efficiency and be good for business.
However, the new tax will cover many goods and services not previously covered by the eight per cent RST. Those include:
- Gasoline
- Home heating oil
- Fast food under $4
- Tobacco
- Haircuts, pedicures
- Real estate commissions
- Gym memberships
- Taxis, newspapers, magazines
- Movie tickets, internet fees
- Postage stamps
The province will make the following exemptions:
- Books
- Diapers, children's clothing and footwear
- Child booster seats
- Feminine hygiene products
- New homes under $350,000
However, if you are buying a new home for $800,000, that home will cost you an additional $40,000.
Purchasers of new homes worth up to $500,000 will get a rebate on the provincial portion of the new sales tax. "The effect of the housing rebate would be to ensure that, on average, new homes under $400,000 would not be subject to an additional tax burden," the government wrote.
Small businesses will get a one-time sales tax credit worth a total of $400 million.
An estimated 6.5 million individuals and families will get cash payments in 2010 and 2011. The payments will be a maximum of $1,000 for families and $300 for individuals. The payments will total $4.3 billion -- which is the amount Ottawa is giving Queen's Park in transitional funding.
The McGuinty government also promises to deliver broad-based, permanent tax relief to both families and businesses.
For families, individuals and seniors:
- a permanent, $260 refundable sales tax credit to low and middle-income adults and children
- a property tax credit of $250 for non-seniors and $625 for seniors
- $1.1 billion in broad-based income tax cuts by cutting the first bracket rate to 5.05 per cent from 6.05 per cent
- The government claims 93 per cent of Ontarians will get a tax cut.
For business:
- cutting the corporate income tax (CIT) rate on manufacturing and processing to 10 per cent from 12 per cent, effective July 1, 2010
- reducing the general CIT rate to 12 per cent by July 1, 2010 and to 10 per percent by 2013
- exempting more small and medium-sized businesses from the Corporate Minimum Tax and cutting the rate for large businesses to 2.7 per cent from four per cent effective July 1, 2010
Senior government officials said there are other tax relief and targeted measures for business that are currently taking effect.
Some measures are also being tied into the changes to the sales tax, they said.
Spending, assumptions
Overall, the government plans to spend $32.5 billion on infrastructure spending, plus $700 million on skills development.
With total spending of $108.9 billion (including $9.3 billion on debt interest), the province is expecting a deficit for 2008-09 of $3.9 billion and $14.1 billion for 2009-10. The deficits running to 2014-15 are expected to add up to $56.8 billion.
The province won't return to balanced budgets until 2015-16, the government projects.
Here are some other measures:
- Shrink the civil service by five per cent through attrition and "other measures"
- Freeze MPPs' salaries
- Limit the raises of senior civil servants
- Make the BuyOntario program mandatory
It also hopes to ferret out $1 billion in savings.
Ontario assumes that the recession will end by mid-year, with economic growth returning after that. The government said its assumption is more conservative than those of private-sector forecasts.
The province assumes that for every lost point in GDP, the government would lose $725 million in revenue.
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Robert Nimmo
said
Has he read the news lately?
The Hammer Man
said
Sighs
said
Small Town Ontario
said
I can't wait for the next election. If Ontario is stupid enough to vote in Liberal again than I think I have to move to another province!!
Ryan P.
said
Bill Gettting the shaft from McGinty
said
Rick in NB
said
Bob in Renfrew
said
Wally Paige
said
TTC all ways benefits at budget time. All for the rich. Who you guys kidding. I'll give Layton a try this time. Thanks for nothing.
Richard in Ontario
said
LondonJames
said
Peter D
said
Charlie
said
It is also interesting that, for all the tax decreases, my tax bill keeps going up a bit more every year, whether it is sales, income, property and like taxes or those darling "user fees". I can at least get out of them by sitting at home in the dark on my hands and doing nothing - at least until someone comes along with a "breath" tax.
I really dislike being treated like a fool and played for one by governments. Regardless of how much taxes are reduced, there always seems to be enough to pay fat bonuses to those always deserving civil servants or carry politicians from one hopelessly exhausing fact finding mission (warm climates preferred in winter months) after another. Isn't it about time the public said "Stop" - we will not tolerate this garbage anymore?
A little honesty will go a long way - and as for ways to reduce taxes, start by cutting waste, bonuses, trips and the like and channel the savings into tax relief or job creation. "Honourable" members were elected to serve the people - but somehow that has been turned to "snow" the people.
MW in Thunder Bay
said
When the Tories left, Ontario was on track for a $2 billion deficit (which could have been balanced with the sale of assets).
Since then, McGuinty has piled on billions in new debt and only managed one year in which he posted an extremely modest surplus. Now he's using a recession as an excuse to spend the province into the poorhouse.
This is reckless, wrong and handcuffs future governments and taxpayers with enormous annual interest payments on a staggering amount of debt.
When will governments of all stripes finally understand that you can only spend what you make? That means never running a deficit, no matter how good or bad the times are. That's how ordinary Canadians run their finances and that's how government should as well.
Tony C in Toronto
said
Help for those in a lower and middle income bracket is a good thing.
The harmonized sales tax is a good thing.
Eric
said
This harmonized tax is garbage. I say it is time for an election. Where is Mike?
$1000 to offset what we have to shell out. Give me a break!
Lynda Hurdis
said
When I sell my home who pays the pst on the commission my realtor gets..will it affect why the buyer offers? And tell me how can they spend $4 billion dollars to ease the "transition" - when according to this news report they only make just over $1 billion on new tax revenues? Glad I don't run my household this way or otherwise I would be on welfare. Hey maybe that't the answer.
Ann
said
One benefit you have that married couples don't - you get a GST cheque, I don't.
I hate to tell you but we are all getting the shaft from McGuinty. No-one is exempt except large corporations. Businesses are already tax exempt for items purchased for use in production of their product - how is harmonization going to change that.
Reuben
said
The funny thing is the Liberals wouldn't have to harmonize the sales taxes if they'd just collect the taxes that they're supposed to... you know, like the $500 million they didn't collect in cigarette taxes.
When's the next election?
annie, ontario
said
It's a slippery slope, when you raise taxes, people with wealth leave your area and you earn less than prior to your tax hike.
BTW, those states are liberal states and 2 of the 3 are facing bancruptcy.
Gunnar
said
Liberals only know how to spend money. They don't spend wisely, frugally, or practically....they just spend. Stop voting them in, and this will stop.
yum
said
yim yim
said
Tim from Calgary
said
Steve the Pundit
said
I haven't done the full math yet, but there's no way that the proposed tax "cuts" and tax "rebates" are going to offset my increased cost of living:
- price of gassing up (at today's prices): up $5 / week
- price of haircuts: $1.60 / month
- my daily cuppa joe: $.10 / day
- monthly movie night: $1.00 / month
utility bills (gas and hydro only, at current rates): $20 / month
That's already over $550 / year and I haven't factored accountants, gym memberships, internet access... I'm speechless!
There's only one way to sum this up: everybody sing along with me!
"A place to scram
A place of woe
Ontari-ari-ari-oh!!!"
Linda in Vancouver
said
I just hope he's right.The whole country is hoping the people of Ontario can get their province through this recession in the same way the whole world is hoping the USA can mend it'd broken economy.
But I will say this,I quit the Liberal party of Canada because of socialists like the Bob Rae that "Ryan P" seems to favour.
NO ONE is going to get through this recession without some negative impacts.That is simply the way it is.All we can expect from any of our leaders is their best effort to mitigate the damages to Canadians.Governments with the lowest debt and tax levels will suffer,but not nearly as much as those with big debt,and little room to lower taxes.Long term,and as much as I'm not very fond of Mr.Harper,I agree completely that we must have a strategy to lower taxes and accumulated debt all across Canada.That is the gist of my problem with the Liberal party,the NDP,Dalton McGuinty and the province of Ontario.
That,and of course SENATE REFORM.We need a DEMOCRATIC Senate.If we ever did that we might actually see all Canadian provinces with a voice,and a willingness to work together in times like this.We should be helping each other for a stronger Canada.Not fighting each other over how to divide up an increasingly smaller number of resources.
Peeved in Northern Ontario!!
said
Gail (Hamilton)
said
ouifyg
said
vinny
said
but that wouldnt help civil servents who have their premiums paid by the public.
Carolyn
said
Scott in Kingston
said
all they do is tax, tax, tax us to death
Mark
said
Everyone sign up, it is time for the Ontario Tea Party, Dalton and Millers socialism must be removed ASAP.
The first party in the next election that promises to immediately reverse this tax grab and take away the 6% health tax grab gets my vote. Hospitals, wait times and test wait times are even worse now than when that tax was introduced.
Cory-Toronto
said
Susan
said
Don
said
Brenda outside of North Bay
said
Rock
said
RT
said
Syko
said
Mike vdB - Chatham, ON
said
Mark
said
My wife and I both are professionals, will receive zero benefit and will now pay even more in tax. The worst news? We live in Toronto so we get it twice-once from McGuinty and the 2nd time from Czar Miller.
Got to learn from the west
said
Mike V
said
Time to move out to Saskatchewan, Alberta, or another country where they don't screw hard working people with high taxes.
Gord from Guelph
said
Al from Oshawa
said
CHRONOSS
said
HOW IN HELL does a min wage construction job make our economy better when most of the jobs are 8-10$ a hour and most of that gets later spent on beer and drugs and , does very little to return to the rest of Canada.
NOW add the HST and you get items welfare and disability now will be charged 8% more on and get a 2% raise thus taking even more money out of the economy to regular buying
Matt
said
Tax hikes?
Service cuts?
5% workforce reduction, but hundreds of thousands of "new jobs"
Time to get the PC or NDPs in there.
Mark
said
Mcguinty & Miller are socialist crooks who have destroyed the Ontario middle class and I am not supporting auto bailouts tax harmony rip-offs or the god awful hospital waits should you ever be unlucky enough to wait 12 hours to see one after paying 6% health tax for supposed better health care services.
It is time for a full fledged tax revolt!!!
Jim - Calgary
said
The trouble is that when your provincial governments, past and present, put Ontario in the tank financially, you proceed to take the country with you and then expect the rest of us to do something about it.
Some how all of this doesn't compute in the mind of this old Alberta cowboy. This story reminds me of the book "How to Recover From the Effects of Bank Robbery" by F & J James, forward by the Dalton Gang.
Greywolf
said
Ex-Ontarian in BC
said
How about all those income surtaxes? Bring em back!
Am I ever glad that I turned my back on Ontario years ago. It was a ripoff to live there then, and it still is now.
Where is Mike Harris when you need him?
With government like McGuinty's, it's amazing that any one would want to do any business in that province!
David in Toronto
said
dropping and people are losing money on there Homes . Now Ontario wants to hit the Homeower with
PST & GST on all Utilitys . Then when you Drive your car to work - More GAS TAX too. It's a Bad time for the HST Tax - Things will get worse in Ontario . You may see more Cross-border shopping again soon .
al
said
i feel for the low income families. who said mike harris was bad.......
dan ontario
said
Angry Dave H. from Cornwall, Ontario
said
RJ
said
I'm no rocket scientist but a bad economy means tax hikes?? Bring back Harris or even may i say Rae? where do i sign the Get Rid of Dalton Sheet??
PrairieDog-prairies
said
chris
said
Where is that
said
Yeah, move to Alberta and herd sheep or whatever.
Jenna
said
vince in trenton
said
Al
said
Ditto to Linda in Vancouver.Well stated.
Senate reform especially!!!
Ray in AB
said
Red X
said
HaHa
said
Glen
said
Marc
said
yushi
said
Ontario soon become ghost town province
Mike from Toronto
said
M
said
Tax the rich; make 'em squeal even louder
said
Red X
said
The Harper Gov't threw away their principles to stay in power by introducing budgets with deficits well into the future. The province of Ontario is matching some dollars to get the infrastructure shovel ready.
China will be a crutch to the World Economy...
gentel
said
How many jobs does Saskatchewan have to offer?
said
300?
Let us know when hundreds of thousands of jobs are available.
That's what Canada needs.
Not more penny-ante nickel-and-dime operations.
Big thriving progressive economic activity, not some piddling small-time hobby jobs.
Got that yet?
Two Guys From Windsor
said
JR
said
"The Lying King"
Starring Dalton "The Hoser" McGuinty
Directed By Dwight "Spendo" Duncan
Sure to be a sell out at the next election.
Check the Harper story that CTV won't give a board
said
He's still trying to pretend there is no recession.
Harper is a fool and a disgrace!
Al in Oshawa
said
pamela bushey
said
more Liberal budgetary giveaways to corporations
said
* reducing the general CIT rate to 12 per cent by July 1, 2010 and to 10 per percent by 2013
* exempting more small and medium-sized businesses from the Corporate Minimum Tax and cutting the rate for large businesses to 2.7 per cent from four per cent effective July 1, 2010
HPL
said
J
said
Not Happy
said
I am now screwed with MORE tax, MORE government BS and my kids will inherit this mess.
Last time we had a deficit this big, Mike Harris killed everything in order to get the Province back (somewhat) in the black.
I can just imagine what this Province will look like...
Sink McGuilty
said
John from TO
said
Andrea H
said
I see good and bad in the budget.
The good is more funds for healthcare, but then bad for people who drive a car and rely on gasoline.
But lets face it, were is a recession, jobs have to be created some way or another.
Rick in SK
said
Cambob Screwed TAXPAYER!
said
Every person in Ontario who is opposed to this must voice thier opinion strongly!
GENERAL STRIKE, APRIL 1.
Yes, lost wages. Yes, schedules and conflicts. But if we let this pass, every single person here is going to be shafted HARD by this tax grab.
GENERAL STRIKE, APRIL 1.
I am not in a union. My boss will freak out. But we CAN NOT LET THIS HAPPEN!
GENERAL STRIKE, APRIL 1.
Do not go to work. Do not shop. TELL YOUR FRIENDS. TELL EVERYONE. It's just one day, but it's the only way to stop these thieves!!!
GENERAL STRIKE, APRIL 1.
In all friendliness and with due respect, people:
said
If you don't like it in Canada, move.
No, really, pack up and move.
You're free. I won't stop you from moving and I sure won't beg you to stay.
Eric
said
PrairieDog-prairies
said
Angela
said
Anyone that thinks this is a good thing is an absolute idiot. This could kill many small tourist businesses in all parts of Ontario. I'm furious that people are breathing a sigh of relief that they won't have to pay sales tax on diapers but are not even focusing on utility bills. The new harmonized tax on commercial rentals and utilities is going to give the province buckets of money for them to waste. If it costs you $300.00 to fill your oil tank now you can add another $18.00. Buy a $40.00 book and you won't have to pay and extra $3.20. I don't have to buy a book but I do have to heat and power my home 12 months of the year.
71 liberals sat on a wall!
said
David C (Ottawa)
said
G-RANT
said
Abby
said
Bob R (Cardinal)
said
Let us decide if it's a workable budget put your dictatorship on the line.
KL
said
Wings Fan.
Margaretha
said
Will be growing my hair ,gray will have to stay
Might keep the internet.
Welcome to Ontario
Denis P
said
B Martin
said
Dave
said
Matt
said
They dangle $1000 rebate cheque in front of the voters, jusy hoping we don't realize that we will be paying THREE TIMES THAT much every year, now having to pay PST on items which were previously exempt.
M M B Ont
said
Tim
said
Maggy Northern Ontario
said
I'm really angry with the liberal government. All they want to do is spend.
They should be lowering taxes specifically on cars and houses to get people who can afford to spend to go out and buy. A short term moratorium on the PST for new automobiles could have possibly went a long way in helping Ontario's beleaguered auto industry.
We can take solace we are not alone our friends south of the border voted liberal (democrats) and are also going to pay through the nose TAXES, TAXES, and MORE TAXES.
Liberals are all about spending, deficits and taxes.
AND
I'd like to know what the Liberals are doing with the Health Tax they slid in a few years ago, as our health care system continues to deteriorate rapidly. Did any of this money go towards health care???
I was going to go for a ride to blow off some steam, but realized I can no longer afford it as I will have to pay more for gas.
GUTSHOT! in Thunder Bay
said
In Ontario if you buy a used car in a private sale, all you "luckily" had to pay was the PST on the amount the government said it was worth.
If its "harmonized" then if you bought a used vehicle privately for $20,000, you will have to pay an additional 7% now (and every subsequent time the vehicle is sold in its life)
and they want to offset this and everything else with $300???
Do the prairies want a good auto mechanic? Im ready to move, and I can start Monday
Dan Sarnia
said
Don
said
Ron Kilby
said
yahuan
said
thinker
said
VERY MAD
said
A proud Conservative
said
They are so out of touch with reality, it is pathetic. The next election should be very interesting as most people keep voting for the same old piece of crap.
You did it after he screwed us over with his famous health care tax. How bloody stupid were all people who voted for him a second time. Some people never learn.
Now it is time to shut the hell up and put up with this band of Liberal no brains.
Alain Marenger Russell Ontario
said
André in Ontario
said
Doug BC
said
For several decades we have elected the party that promised us the most "free" social programs,and ignored those who warned us that their could come a day when we would regret the massive debts we were accumulationg.
And those warnings came form a lot of people,not just Conservatives.John Turner and John Manley were Liberals with the same concerns.
No,I'm not a big fan of Mr.Harpers,and I did spend the vast majority of my life supporting the Liberal Party very actively in every federal election.
Well my friends,all the chickens have come home to roost.It's time to pay the piper for all of our past excesses.And sadly,it's the people we thought would benefit from all those "free social programs that are now going to suufer the most damage.
How many more decades will take for Canadians to finally figure out that "there is no no such thing as free"??
BC Liberals have been adding to debt too.But not a huge amount,and,unlike the NDP of the p[ast,at least I can look out and see new roads,bridges,and public transit.I still don't like the debt,but at least I can see what I'm paying for.
We're also seeing more user fees,but some lower tax rates.Local government is a problem because they still keep addsing to property and transit taxes.
It's not good anywhere on the planet,so I'm reluctant to offer comparisons.Perhaps the man from Ontario who now lives in BC would do better at that.
But,I side with Harper on one major issue.If we did not have this massive debt we would be better equipped to deal with this nasty recession.I see no Liberal west of BC even willing to consider that.
Kris
said
peter in BC
said
Raybees
said
Alicia
said
GF
said
Did anyone else catch this?
Pretty hypocritical considering last week it was revealed the McGuinty government awarded a contract to a company in China to make Ontario provincial flags.
db
said
Ron in Sask.
said
Maggy Northern Ontario
said
Wake up Ontario - Liberals are not the way to go. Canada wake up - Don't get fooled by the Federal Liberal Leadership Mikee! Show your support for conservatism. Just watch what is happening in the US right now under the new democratic liberal party. Not looking good. It's all been lip service, more campaigning and yet nothing is getting done other than raising taxes.
Terry
said
northst*r
said
At least Ontario tells you where the money will go NOT like the Federal Conservative.
You guy's on here are just whinning and just think of yourself...
Your a bunch of sore losers...
We're a very rich Country and we have to share...
Well done Dalton...
Your looking for the Provinces welfare for the future!!!
Congrat....
Lynn in Hamilton
said
R Dow
said
Have a great day
Dave
said
That is pretty easy to say when you are the one in that bracket. Seniors who have payed into society yes give them the break. Welfare families who just think that they are baby factories so that they can get more. Give them nothing. The way i see it, if you contribute nothing, you get nothing.
PrairieDog-prairies
said
You don't have to move to Alberta to heard sheep. There's more than enough in Ontario.
Dale Lane
said
This is ridiculous. How does this make any sense? Does this new house exemption mean brand new homes or homes for resale to the first time buyer. One thing left to say I Can't wait for the next election. Good bye McGuinty and the Liberal Liars, I mean government.
Greg Barker
said
Windex
said
NEVER AGAIN!
said
Those who elected the "Fiberals" in Ontario deserve these OUTRAGEOUS taxes...
mommabear
said
Al
said
I'm sinking throw me an anchor
said
Don
said
I'll just have to bide my time until the election and then... :-)
Ian
said
MDC
said
For a government that had promised no taxes when it first ran and won.. We are now facing another huge tax increase in 2010.
I really hope that they come to thier senses and drop this crazyness.
1. We are in a recession, people are loosing thier job which means no income after pogie runs out. How is incrased taxes gonna help them.
All this is gonna help is people who pad the pockets of the provincial liberal government.
Well, I just may have to look at moving to another province where I will not be paying so much extra to live.
Is this a plot by the NDP
said
just another canadian.
said
tb
said
Low Income Person
said
Betty McCullough
said
Prof. Pye Chartt
said
A special thank-you to all the stubborn and obstinate little weenies who voted for Deceitful Dalton. By elevating this political and ideological loser to Premier you added another nail to Ontario's economic coffin.
After you electoral morons have finished salivating over your $1,000 bribe, you'll realize that you're getting your pocket picked AGAIN and that you're worse off, along with your province.
What a bunch of poor saps and suckers Ontarians are. Deceitful Dalton lied to us about taxes, smiled, put on a rubber glove, and then proceeded to violate our financial sanctity once again.
Sly? No. A snake.
Brett
said
LD from Brampton
said
Dave, Niagara
said
Owen Burmania
said
Ian
said
MD
said
Edward in Ottawa
said
Introducing taxes in this manner at this time is dumb, dumb, dumb........
Ian
said
Alysha Ont
said
Pissed Canuck
said
Geoff
said
My guess is he is probably right!
You get what you elect people!
Chris
said
I'm sure voters will never forget about this and the next party to rule Ontario will be the PC.
As a liberal, I guarantee everyone that I will vote PC in the next prov. election. I am still a Liberal federally, though.
Bob in Harley
said
JN
said
"You know, you Ontarians can dump your provincial government. It is possible and force another election. Just because he was elected does not mean he has to stay in for the whole term."
Please Peter: tell me how one can dump a majority government short of a revolution.
Thomas C
said
People are complaining that he picked a recession to execute that tax reform. I say they don't know what they're talking about. If one is to introduce a tax reform that will have short term negative effects, you might as well do it in the midst of a recession rather than introduce it in a period of rapid economic growth, as it would have the effect of stopping or slowing down that growth.
Think of it as something like medicine. Sure, it can taste horrible going down, but long term effects are positive.
But, on a side note... sales tax harmonization... corporate tax cuts... gee, I wonder just who has been pressuring the Ontario government to do both of those for the longest of times.
Hate the Fiberals!
said
But yet, this party has a cult following?
Wake up people!!
Dalton has to go....where do I sign?
John
said
taxpayer
said
Mary Clarke
said
McGuinty makes the decisions for Ontario,not Flaherty or Harper.
And a HST is a good idea,but only if it exempts the products not currently subjected to 2 taxes.
Cathy Wilson
said
McGuinty with his "no new taxes" and the Feds with their promises to eliminate the GST,and 12 years of promising National Day Care!
Never believe a Liberal,when they promise the moon.
RTYSB
said
Get Even
said
I'm looking forward to an election.
Charlotte McKenzie
said
Heating fuel is already extremely expensive,and now will cost another 8%.
We'll eventually see more families living in poverty.
Liberals don't care about avg. Canadians.
L.R.C.-ontar-arario
said