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Canada, Ontario

McGuinty’s Big Idea

As Ontario continues to sink deeper and deeper in our economic woes, Dalton and his Liberal Government have a plan they believe will get us out of this mess and onto the road of economic recovery. To understand Ontario’s current economic troubles, let’s take a look at Ontario’s recent history.

The economic woes of Canada’s most populous province did not begin over night nor did it start when the financial giant Lehman Brothers collapsed. Ontario’s problems begin in 2003 as Dalton’s Liberals were being sworn in as the province’s new governing party. The early 2000s had been exciting yet bad time for Ontario: Terrorists strike the northeastern United States resulting extreme security measures being created and enforced on the Canada-US border. This need for extreme border security negatively affected our export and manufacturing sectors. Our tourism suffered as result of the SARS crisis. Another blow to our manufacturing sectors was the closure of several Ford Motors plants resulting in massive job losses: from the time McGuinty and his Liberals were elected into office to their reelection in 2007, Ontario had lost over 300,000 manufacturing and auto parts jobs. It didn’t help that Government jobs were on the rise and so were their salaries. It seem that job creation in what ever form was good, however the increase of civil servant positions and an increase of their salaries will, in most cases, result in a negative effect on the wallets and pay cheques of taxpayers. What seems to be the case is that McGuinty is stays true to the description that is given to the liberals by the Tories: tax & spend. While taxing and spending are not inherently bad, this government had mismanaged the public funds and how they are collected.

As a result of the economic crisis and Liberal mismanagement, the Province now has a deficit over almost a half-billion dollars. And of course, McGuinty has a plan: to tax the hell out of working families and less fortunate individuals. To fund their mismanaged spending and to fill their coffers, the McGuinty Liberals are introducing the Harmonized Sales Tax to replace the currently separate federal GST and Ontario’s PST. While most individuals will think that there will no difference or change to their expenses under the new HST regime, it is actually quite the opposite. Under the current PST regime, there are certain goods and services that are exempted: goods such as prepared foods under four dollars or services such Hydro. The new Harmonized Sales Tax regime includes no such provisions for a majority of the goods and services that had PST exemption.

What Dalton McGuinty and his Liberal Government need to realize is that this is not the time to be introducing a quasi-tax hike. Yes, there will be an increase in revenue for the Ontario Government. But at what cost? Does McGuinty or his Liberals even realize that introducing the Harmonized Sales Tax will hurt working families, lower income earners, and individuals who just lost their jobs? Obviously not.

Dalton and friends need to get through their thick skulls that what they believe is “the right but hard thing to do” may actually be the wrong thing to do. If they can’t understand that, then they don’t deserve to be in government and need to be dumped by the people of Ontario.

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