Watch out, taxpayers of Ontario - Premier Dalton McGuinty is revving up corporate welfare to run roughshod over your wallets. This week the Toronto Star trumpeted the headline, "Oakville wins Ford's $1B", hailing the fact that taxpayers are shelling out $200 million to attract a new automobile manufacturing plant to the GTA.

According to the article, the plant is "massive" - but no details are given on how many jobs will actually be created. And just how badly is Ford doing that it needs an "aid package" from Ontario taxpayers Apparently, not badly at all: in the third quarter of 2004, the company posted profits of 15 cents per share, or $266 million, on revenue of $39 billion.

Of course, the provincial government will argue that because US states offer subsidies to automakers, Ontario has little choice but to follow suit. But that tide may now be turning, thanks to fed-up taxpayers south of the border, who have taken the issue to court - and who may yet put the brakes to the corporate welfare gravy train.

In a recent decision, a three-judge panel in Ohio found an investment tax credit in that state to be unconstitutional. The case involved special tax credits that Ohio gave to Chrysler while it was building a new assembly plant in Toledo. The judges held that the investment credit gave preferential treatment to companies that expand within the state, rather than in other states, thus hindering interstate commerce. According to a senior Chrysler official, the ruling appeared to call into question all kinds of aid to industry.

While Canada has different laws governing inter-provincial commerce, the court ruling does give food for thought - and signals a warning bell to governments eager to dole out taxpayer dollars to big business. The Ohio lawsuit was filed by a dozen taxpayers and three small businesses in Toledo, with assistance from presidential candidate and consumer advocate Ralph Nader. The case has been appealed (surprise, surprise), but if it is upheld, it could be used to challenge programs in other US states.

In Canada, like in America, corporate welfare is nothing but a shell game - and it's not just personal taxpayers who foot the bill. The government also takes the money raised from one corporate taxpayer and gives it to another - in other words, it subsidizes the competition. In Ontario's auto sector, that means that Toyota, Chrysler, Honda, Suzuki and GM - and their workers - will end up helping Ford beat them at their own game.

And just how do governments decide who gets their money Too often, political connections pave the way, without regard for the viability of the actual business.

Instead of picking winners and losers with taxpayers' dollars, Premier McGuinty should implement business tax cuts and right-to-work laws, making it easier and less costly for companies to do business in Ontario. Sadly, one of the premier's first actions was to cancel corporate tax cuts planned by the previous Conservative government. The message he is now sending to business is, come and we will pay. Which puts big business in the driver's seat - and leaves taxpayers in the dust.