Toronto: Canadian Taxpayers Federation (CTF) Ontario Director, John Williamson, reacted today to Liberal leader Dalton McGuinty's economic plan for Ontario.

According to the Ontario Liberals, the focus of their four-point plan is to manage taxpayers' money wisely. The manifesto commits the party to balanced budgets, debt reduction, and more open government. Moreover, Mr. McGuinty has promised to abide by the Taxpayer Protection Pledge, an initiative spearheaded by the CTF to hold politicians accountable. This law, passed by the legislature in 1999, prohibits governments from raising most taxes and deferring scheduled tax cuts without first holding a province-wide referendum. Yet the Liberal economic plan, entitled Achieving Our Potential, is regrettably void of any real tax relief measures and lacks specifics (like a scheduled debt reduction plan and the party's planned changes to workfare, for instance).

"It is clear that if the Liberals are elected to office, the days of steady tax relief will be over for Ontario workers," Mr. Williamson said today. "The Ontario Liberal party is simply not committed to delivering even modest tax relief."

Mr. McGuinty believes his plan will build an Ontario economy that is "the envy of the world." But the Liberal party promises to jettison scheduled cuts to business taxes, and slam the brakes on further tax relief measures. "The current government's tax reductions have helped foster an economic environment that created one million news jobs since 1995, lowered welfare dependency, and fueled economic growth that is stronger than any other Canadian province and any other G-7 nation. That's quite an achievement," said Williamson. "If you want growth, more prosperity, and higher productivity, you don't start off by promising to raise taxes. That will imperil Ontario's long-term economic performance."

"And for a document that is supposed to focus on the economy there was an awful large number of spending commitments. Apparently, the old Liberal belief that governments can spend their way into prosperity is alive and well. Obviously, if the Liberals are elected our organization will be busy," concluded Williamson.


NOTE: Mr. Williamson will be meeting with Ontario Finance Minister Janet Ecker on Friday, January 31, to present the Canadian Taxpayers Federation's 2003/04 budget priorities. The pre-budget submission will also be made available to the Finance Committee and all political parties following that meeting.