Taxpayers Federation believes that FAO budget analysis hints at future Ford tax cuts
TORONTO, ON: The Canadian Taxpayers Federation believes that tax relief is coming in light of the Ontario Financial Accountability Office’s analysis showing strengthening spending restraint by the provincial government.
“This government was elected on a mandate to put Ontario’s books back in order and we’re pleased that the FAO has found that the government is getting on track by controlling spending,” said CTF Ontario Director Christine Van Geyn. “The FAO has more access to budget details than the general public and it reports that the government has already found about half the cost savings it needs to achieve the balanced budget target. We expect the government to keep its balanced budget promise and find the rest of these savings.”
The FAO found that the government will achieve its plan to balance the budget by 2023, a year after the next election, if it is able to meet its targets on program spending restraint. The CTF has repeatedly called for restrained program spending in pre-budget submissions and while program spending did grow significantly during the first few months of the new government, it is slated to drop dramatically and hold at an average of one per cent per year.
The FAO also found that the 2019-20 budget includes what it calls “fiscal room” for revenue reductions (e.g. tax cuts). The report indicates that over the next five years, average tax revenue growth will be 3.3 per cent, slower than the 5.3 per cent rate from 2013-14 to 2018-19.
“When Premier Doug Ford was campaigning last year, he promised to cut the carbon tax, and he did it, but he also promised to cut personal income taxes, the small business tax rate, and the excise tax on gas,” said Van Geyn. “Taxpayers are holding the premier to his promise. There’s room in the budget to cut taxes and the premier needs to get it done. Taxpayers need relief and it is a core part of Ford’s mandate.”
The full FAO report is available HERE.