Ontario Premier Dalton McGuinty’s legacy is bound to be that, in a profession where everyone is presumed not to tell the truth, he has turned lying to the electorate into an art form. While running in the 2003 provincial election McGuinty looked straight into the camera and told Ontarians that they would not pay “one penny more” in taxes under his government than they were then presently paying. Shortly after coming to power with a majority, McGuinty imposed a health tax that was the largest tax increase in the province’s history.
In an attempt to calm the unwashed masses, he proudly announced that this was a health premium and not a tax. Years ago Ontario residents were required to pay a health premium and the collective agreements that the Ontario government had with its unionized workers required the employer to pay the tax. Despite its previous abolition, this term was never taken out of some of these agreements. After the workers jumped for joy because they were not required to pay the new health premium, Dalton chuckled and told them not to be silly – it was a tax and not a premium.
A few months ago the shameless premier again made a promise that he would not raise taxes. At least this time, the voters appreciated it for what it actually meant – nothing. True to form, in last week’s budget, the government announced that the provincial sales tax will be harmonized with the GST, beginning in July of next year. While there are valid arguments that a harmonized sales tax will benefit business and therefore the economy and the ability of business to be more efficient and be better able to create jobs, it is still a tax increase. Some goods and services that are currently exempt from the PST and subject only to the GST will be taxed at 13% instead of the current 5%. And, as 13% is more than 5%, this constitutes a tax increase despite however McGuinty and his flacks try to spin it. Tax increases inevitably follow Dalton’s promise not to impose such increases.
But the budget also contained cuts to personal, corporate and small business taxes. For example, the current corporate tax rate of 14% is slated to fall to 10% by 2013. These tax cuts, together with the harmonized sales tax just might go a long way in helping Ontario’s economy that, because of its manufacturing base has been disproportionately hit hard by the current world economic situation. McGuinty is now considering forgoing the planned increase in the minimum wage next year; an increase that is set out in the budget that was tabled only days ago. Dalton McGuinty is now on the same page as federal Finance Minister Jim Flaherty who has constantly urged Ontario to lower taxes in order to be more competitive. But McGuinty never listened before, preferring not only to tax and spend but to put the province’s emphasis on building up a nanny state to micromanage as many aspects of Ontarians lives as it could.
This was the big lie. Increasing taxes so that money could be spent on frivolities such as changing the logo of the now infamous Lottery and Gaming Corporation were the order of the day. Introducing more and more legislation to micromanage the lives of ordinary law abiding citizens was a prime directive of this government. McGuinty and his MPPs never cared about the economy or the lives of ordinary Ontarians. It was all about them; their ability to feel good about themselves when the taxed people to spend money on their pet causes. It was all about the power to run peoples’ lives in the way that they believe they should be run. The only thing that Dalton McGuinty has accomplished so far in his tenure is that Newfoundlanders, once the butt of jokes, are now able to sit around and tell Ontario jokes; jokes about Canada’s latest have-not province.
McGuinty’s steps to improve the Ontario’s economy show that nothing that he did before was in order to strengthen the province financially. Now desperate that the province is experiencing disproportionate fallout from the current economic crisis, McGuinty decided to finally take steps to improve the lives of Ontarians. His previous time in office was the biggest lie of all. It was all about him and power; it had nothing to do with making the province more productive. His present tax cuts proves that he and his boys and girls knew all along that what they were doing was actually hurting rather than helping the economy. Faced with a real crisis, the government has finally decided to take responsible action to help bring back the economy.
But don’t expect Dalton to admit this; that would be telling the truth.
