Eves letter shows more taxing authority for cities; McGuinty letter clearly reveals hikes to business taxes and scrapping personal income tax cut schedule

OTTAWA: The Canadian Taxpayers Federation (CTF) today weighed back into the Ontario election campaign surrounding the issue of tax hikes and credibility.

On September 11th, CTF Ontario director John Williamson revealed that both PC leader and Ontario Premier Ernie Eves and Liberal leader Dalton McGuinty signed a CTF pledge agreeing to uphold the Taxpayer Protection and Balanced Budget Act. In effect, both parties signed on to the CTF agenda of fiscal discipline, transparency and respect for the democratic will of the electorate.

Aside from being legally bound to run annual balanced budgets - or face severe personal financial penalties - the Act also stipulates that proposed tax increases covered by the Act must be put before voters in a referendum or clearly spelled out in an election campaign for approval or rejection.

"To date, both Mssrs. Eves and McGuinty have complied with the Act by writing the Chief Election Officer at least two weeks in advance of voting day to point out their proposed changes to the tax system," said CTF federal director Walter Robinson.

"Mr. Eves and his Tory party plan to allow municipalities to levy gas and sales taxes if re-elected while Mr. McGuinty will hike the general corporate tax rate by 1.5%, the manufacturers and processors rate by 1% and cancel three personal income tax cuts scheduled to go into effect for the 2004 taxation year," added Robinson.

"While the Liberal platform has been more specific, we in no way, shape or form support higher taxes on individuals or businesses," concluded Robinson. "What is clear is that the Taxpayer Protection Act is working, never before have Ontario voters had such clarity from political parties with respect to how they plan to tax and spend. Regardless of the outcome on October 2nd, we are confident that Ontarians are casting an informed ballot."

The CTF is Canada's most effective taxpayer advocacy group with 65,000 supporters nationwide. It is a non-partisan organization and does not receive funding from any level of government.