Ontario budget: New taxes and high government spending threaten provincial economy

(TORONTO) Today, Ontarians for Responsible Government is calling on Premier Kathleen Wynne to back down from the high spending plans outlined in this year’s newly released budget.

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"This is a terrible budget for Ontario, and it sacrifices the province’s hopes for economic recovery," says Peter Coleman, President and CEO of Ontarians for Responsible Government. "This government is still projecting a deficit of nearly $9-billion yet they are already committing to more than a hundred billion dollars of new spending over this decade? This is a reckless and irresponsible economic policy for the province." Total government spending in Ontario has increased from $73-billion in 2003 to $132-billion this year, as detailed in today’s budget. Interest costs from the provincial debt are now the third largest budget item, at $11.9-billion. "This is a government that is out of ideas, and has no plan to balance the books by 2018 as promised," continues Coleman. "Even worse, they are trying to make up for their out of control spending by increasing taxes on families and businesses." This budget introduces several new taxes in Ontario, ranging from a new beer tax expected to increase costs to consumers by more than $100-million annually to an expansive carbon cap-and-trade tax system that is expected to cost taxpayers up to $2-billion each year. "How can this government claim to have any respect for taxpayers when they continue to break their promise not to raise taxes, and drive up the cost of living and doing business in Ontario?" Ontario also has the highest electricity rates in North America, and these rates are set to increase even higher. "This government has already wasted billions of dollars on its disastrous Green Energy initiative, and now they are planning to sell off Hydro One just to pay for new program spending," adds Coleman. "This is public money that should be used to pay down the staggering provincial debt, not to feed the Wynne Liberals’ spending addiction." Ontarians For Responsible Government is a project of the National Citizens Coalition.

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