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TORONTO - The Canadian Taxpayers Federation (CTF) and CTF Federal director John Williamson filed suit today against Ontario Premier Dalton McGuinty and Finance Minister Greg Sorbara to prevent tax hikes contained in the May 18th provincial budget. The lawsuit was filed this morning at 9:30 a.m. at the Ontario Superior Court of Justice in Toronto. A hearing date has been reserved for June 21st, 2004.

"It should not be necessary to go to the courts to demand that our elected officials keep their word and obey the law," said Tasha Kheiriddin, the Federation's Ontario Director. "But in our view ,Mr. McGuinty has breached his contractual promise not to raise taxes, and Mr. Sorbara has not lived up to his legal obligations under the Taxpayer Protection Act. Under these circumstances, we have no choice but to ask the courts to uphold the rights of taxpayers."

On September 9th, 2003, Mr. McGuinty signed a contract with the CTF during a highly publicized press conference in Toronto. The document states in part that "I, Dalton McGuinty, leader of the Liberal Party of Ontario, promise if my party is elected as the next government, that I will: Not raise taxes or implement any new taxes without the explicit consent of Ontario voters."

The May 18th budget contained a new tax based on income tax increases of up to $900 per taxpayer. The Taxpayer Protection Act states that any new taxes or tax increases not disclosed during a campaign must be approved by referendum. Such a referendum was not held before Mr. Sorbara introduced the budget bill in the legislature on May 18th.

"We are asking Premier McGuinty to keep his word to the CTF and to taxpayers and either revoke these tax increases or put them to the people in a referendum as required by law," said Kheiriddin.
" This legal action is being supported by thousands of outraged Ontarians who are demanding that Messrs. McGuinty and Sorbara respect both their vote and the Taxpayer Protection Act."

Because this lawsuit is being taken against Mr. McGuinty and Mr. Sorbara, not against the Crown, it is the CTF's position that no taxpayer money should be spent on their defence. "When former Alberta finance minister Stockwell Day fought a defamation action in his personal capacity, a court held that he was not entitled to legal representation at taxpayers' expense. The same rule should apply to the defendants in this case," said Kheiriddin.

In addition to the lawsuit, the CTF is also holding a rally in Toronto on the grounds of the legislature at Queen's Park at noon on June 9, and continues to receive names on its online Pledge Petition, which currently has over 110,000 signatures.