It's only a few days till the provincial budget and already the McGuinty government is feeling the heat. Broken promises don't sit well with voters, as the good citizens of Hamilton East proved in Thursday's by-election. Despite throwing millions of dollars in corporate welfare at an ailing Stelco, the Liberals still only captured a dismal 27% of the vote. Which proves that integrity - not money - is the key to voters' hearts in this era of scandal and political cynicism.
This Tuesday's budget is Premier McGuinty's ultimate integrity test. The big question is, will he break the mother of all promises, his signed Taxpayer Protection Promise not to raise taxes and not to run a deficit So far, the 8-ball says yes. Instead of curbing spending, the premier seems hell-bent on squeezing more money out of taxpayers. While food and lottery taxes are off the table, higher beer taxes, cigarette taxes, and an expanded PST are still up for consideration.
But it doesn't have to be this way. There are plenty of ways his government could save money, increase economic activity (thereby generating more tax revenue), and balance the books without raising taxes. In fact, suggestions are made to the Canadian Taxpayers Federation's Ontario office all the time. So in the final days before the budget, we pass some of the best ones along.
1. Eliminate waste. This one's a no-brainer. There is so much going around, it's hard to know where to start. One idea - scale back the $100,000 club at Hydro One and OPG. Worst example of this According to one caller (who wants to remain anonymous), the laundry supervisor at a Toronto-area nuclear plant pulled in $100,000 last year. Makes anyone want to quit his or her job and fold sheets for a living.
2. Spend smarter. Start with a visit to your local LCBO. In the last few years, most have been transformed into veritable Holt Renfrews of liquor, courtesy of the Ontario taxpayer. To build these temples of tippling, the LCBO jacked up its capital expenditures by 294% since 1997. Had costs been held to 5% a year, the Brewers of Canada estimates that the government would $302 million more in the bank. Think how many more schoolbooks that would buy, instead of wood-paneled wine tasting stations. (And of course, if the LCBO were privatized, we wouldn't even be having this conversation).
3. Reduce regulation. It's a truism that the more red tape there is, the costlier it is to do business, and the less business gets done. The financial services sector is a good example. The Ontario Securities Commission costs taxpayers $50 million a year, while its reams of new rules have upped compliance costs by 40% since 2001. And you can bet those costs are passed through to the consumer. According to financial advisors' association Advocis, their members can no longer afford to serve the small investor - the very people who need good advice, and whose investments help grow our economy.
One could go on, but one would run out of space. The point is, all of these ideas are doable, and none of them would cost taxpayers one cent. If Premier McGuinty spent as much time finding ways to save money as he did finding new tax sources, the budget would be balanced and his integrity restored. But if he breaks his word and fails this first test, voters in Hamilton East won't be the last to pass judgement.
Is Canada Off Track?
Canada has problems. You see them at gas station. You see them at the grocery store. You see them on your taxes.
Is anyone listening to you to find out where you think Canada’s off track and what you think we could do to make things better?
You can tell us what you think by filling out the survey