• The CTF's makes its 2003-04 Prebudget Submission to the Ontario Government

CTF's Prebudget Submission (391 KB)

TORONTO: The Canadian Taxpayers Federation (CTF) Ontario Director John Williamson met with Ontario Finance Minster Janet Ecker today to present the CTF's 2003/04 budget submission.

The CTF is pressing the Ontario government to:

Rein in spending, fulfil the taxrelief schedule, and ensure the books remain balanced. Under no circumstance should the province return to deficit financed spending. If lawmakers need an example of why debt undermines prosperity, they need only consider this: If there was no provincial debt and no interest to pay on it, the provincial income tax could be cut by 49% - without a corresponding reduction in programme spending. Alternatively, the health care budget could be increased by 34% - without a tax increase. Debt means higher taxes and fewer spending options.

Focus attention on the province'shigh marginal tax rates and bring them down by eliminating the 20 per centsurtax on all income earners in the next budget and establish a schedule to phase out the second 36 per cent rate. These surtaxes allow Ontario to claim it has three low tax brackets (6.05%, 9.15%, and 11.16%) and distort the tax picture by making it difficult for taxpayers to know the real tax bite. In fact, these surtaxes raise Ontario's third rate to 17.41% on income above $65,000 - a far cry from the posted 11.16% rate.

Re-commit to privatization,alternative service delivery, and public-private partnerships to be more cost-effective and to promote competition, entrepreneurship, and excellence in service delivery.

" Implementing our proposals would ensure the economy remains competitive and strong. Moreover, it would signal the government is committed to the successful fiscal formula voters twice elected it to enact. That is to say, modest tax relief, combined with even-handed spending increases and some debt-repayment," said Mr. Williamson. "We will be keeping a close eye on the Ontario legislature in the months ahead to ensure the interest of taxpayers are front-and-centre."