• ledge Commits Candidates to Legislated Debt Reduction Schedule
• Would Earmark A Nickel of Every Ontario Tax Dollar Collected to Debt Reduction

Pledge

OTTAWA: The Canadian Taxpayers Federation (CTF) today continued its "Leadership Week" with the release of its Taxpayer Legacy Pledge and a challenge to all PC leadership candidates to sign the pledge which would commit them to institute a legislated debt reduction schedule committing a nickel from every tax dollar collected in Ontario to go directly to paying off Ontario's $110.7 billion debt.

The Legacy Pledge: Another Step for Taxpayer Protection
"In 1995, the CTF put balanced budgets and referendums on tax increases on the public agenda with its taxpayer protection pledge, signed by Mike Harris and 128 other PC candidates - which became the law in 1999," stated CTF federal director Walter Robinson.

"Now we look to the future with a workable plan to remove the burden of debt from future taxpayers. A nickel a day to pound the debt away, it's pretty clear and straightforward," added Robinson. "To not sign this pledge is to condone the fiscal crime of intergenerational tax evasion perpetuated against our children."

 

A Nickel a Day: Debt Could be Wiped Out in 30 Years or Less
"Our plan ensures that 5% of provincial own source revenues each year would go directly to debt reduction starting in fiscal 2002-2003. With future surpluses in question, Ontarians deserve a government that will include debt repayment as a direct line item in the budget as opposed to the present contingency reserve practice or flimsy surplus allocation formulae offered up so far," added Robinson. "At a minimum, $2.43 billion each year would be devoted to paying down debt, it would be a great legacy to leave to our children."

 

"As the economy improves and revenues increase, this 5% amount will quickly climb to $3 billion or even $4 billion a year, and our debt could be wiped out in 30 years or less once debt interest costs begin to diminish as well," said Robinson. "By the January 31st Ottawa debate, Ontarians will have a clear indication whether the aspirants for the Premier's chair really care about our fiscal future."

 

For every $1 billion of net provincial debt that is retired (a one-time commitment), $80,243,902.44 is freed up (annually) for program priorities, further tax relief or more debt reduction.

"We hope to have all PC leadership candidates signed on by January 31st and Mssrs. McGuity and Hampton will also be pursued on this issue during the next provincial election," concluded Robinson.