CTF incensed over gutting of Taxpayers Protection Act

Toronto: Canadian Taxpayers Federation (CTF) Ontario Director, John Williamson, reacted today to news that Ontario Finance Minister Janet Ecker is set to break key campaign promises on taxes.

Minister Ecker will table legislation to delay the personal and corporate income tax reductions that the PC party promised to deliver in the 1999 election campaign; freeze the education tax credit; and amend the Taxpayer Protection Act, a law that was passed by the legislature in 1999 prohibiting governments from raising most taxes and deferring scheduled tax cuts without first holding a province-wide referendum.

"As best we can tell, there is no good reason to delay these important tax relief measures," said Mr. Williamson. "The economy is strong, but the Ontario government is telling people they face fiscal uncertainties. The federal government presented its own economic update today and announced the Canadian economy is robust and revenues solid. We can only conclude that the Ontario government is simply no longer committed to delivering modest tax relief and holding the line on spending."

In the 1995 provincial election, 129 out of 130 Tory candidates - including Premier Ernie Eves and Minister Ecker - signed the Taxpayer Protection Pledge, an initiative spearheaded by the CTF to hold politicians accountable. And within the current PC caucus, 47 members signed this pledge in 1995. "If these members support this amendment they will be breaking a promise, and breaking their word to Ontario voters," said Williamson. "We were told that the TPA was inviolable and was the government's guarantee that no one - now or in the future - could raise taxes or delay scheduled tax cuts without the consent of voters," said Williamson. "For the government to amend this act is a breach of trust and a sell-out of their principles."

"What is the point of having the Taxpayers Protection Act if the government is going to amend it " asked Williamson. "If the Tories are not going to respect their own law what will prevent the Liberals or New Democrats from doing the same should they one day form a government And that day may be sooner rather than later with the Eves government abandoning the tax cutting agenda and breaking campaign promises."

These amendments are part of a larger bill dealing with investor confidence. "By placing her amendments in a completely unrelated bill it is obvious Minister Ecker was hoping to quietly make these changes in a way that no one would notice. Is this how we maintain investor confidence in Ontario, by raising taxes and breaking promises If the minister wants to restore investor confidence she should cut taxes and do what the party said it would do in 1999," concluded Williamson.