This has been a really bad week for Ontario. First, our beloved Leafs got tossed out of the playoffs. (So much for Leafs Nation - and "Flames Nation" really doesn't have the same ring to it). Then Premier Dalton McGuinty checked taxpayers - by refusing to defend his signing of the Taxpayer Protection Pledge during last fall's election.
The Premier is now giving every indication that he will break his promise not to raise taxes, not to run deficits, and to abide by the Taxpayer Protection and Balanced Budget Act. He claims that the law needs to be amended to provide greater transparency for government finances.
Now, no one would disagree that a second set of eyes on the books is a good idea. But the Premier doesn't need to change the law to get an audit. He already hired Erik Peters for that purpose.
No, McGuinty's motivation in amending the Act is much more sinister: to strip away taxpayer protection entirely. According to government sources, the Liberals are considering changes that would allow for multi-year deficits, instead of an obligation to balance the books every year.
Who knew McGuinty would play just like former NDP Premier Bob Rae Perhaps he thinks voters have forgotten the $63.4 billion Rae added to the provincial debt. Sadly, taxpayers in this province are still paying off that tab. As we speak, Ontario's debt is increasing by $15.4 million every day. Fourteen cents of every dollar taxpayers send the government is wasted on debt servicing. That's fourteen cents that could go to health, education, tax cuts, or rebuilding our infrastructure. Running a deficit only adds to the debt, eats up more tax dollars and gives Ontarians nothing in return.
As it stands, nothing in the Act actually prevents Mr. McGuinty from running a deficit. There are even three exceptions which allow it: war, disaster, or a 5% decline in tax revenues. But if no exception applies, and the Premier still doesn't balance the books, he has to pay the economic and political price. That means pay cuts for him and his team - and the loss of faith of voters who elected him on another broken promise.
To add insult to injury, however, McGuinty now questions whether his ministers should pay the $9000 penalty for running a deficit, even suggesting that former Progressive Conservative ministers pass on some of their pay. Sorry Premier, but icing won't score you points in this game. While it's true that the previous government overspent, it's also true that this fact was common knowledge before the last election - before you signed the Taxpayers Pledge with such great fanfare.
So what should the government do Very simple: keep its word. Balance the books. Don't raise taxes. Get its fiscal house in order by curbing waste and spending. (Whatever happened to that $1.2 billion in Tory waste McGuinty talked about during the election anyway )
What can taxpayers do Make your voice heard. Go to www.taxpayer.com and sign the Ontario CTF Pledge Petition asking the Premier to keep his word. Call your MPP and give him or her an earful. Write a letter to the editor of your local paper. Let the government know that enough is enough.
The May 18 budget will be a faceoff between taxpayers and the government. The difference between hockey and politics is that the Leafs have the chance to play again next year. But if the government wins this one, taxpayers will be on the bench for a long time to come.
Is Canada Off Track?
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