LARGEST DEFICIT IN ONTARIOS HISTORY

[madmax]

http://www.thestar.com/News/Ontario/article/608870

14.1 billion deficit is largest in the history of Ontario

TORONTO STAR FILE PHOTO

Ontario has taken the lion’s share of job losses in Canada.

Budget speech word cloud $56.8B deficit over seven years

Here are highlights of Finance Minister Dwight Duncan’s budget:

— $56.8-billion deficit over seven years as province grapples with global economic downturn.

— A harmonized 13 per cent sales tax beginning July 1, 2010 that will raise costs on a myriad of goods and services, including home heating oil.

— A family with an income of $160,000 or less to get $1,000, spread over three payments starting June 2010, to ease transition to new sales tax.

— A single person with an income of $80,000 or less to get $300 to ease transition.

— $32.5 billion for infrastructure spending over two years, including $5 billion from Ottawa, to sustain some 300,000 jobs.

— $4.5 billion in tax relief for business over three years through corporate income tax cuts.

— Income tax cut for 93 per cent of Ontario taxpayers, including an average 10 per cent cut for people earning less than $80,000.

— Ontario Child Benefit accelerated, giving low- and middle-income families up to $1,100 per year per child.

— Total budget spending of $108.9 billion for 2009-10 with a $14.1-billion deficit.

Mar 26, 2009 04:49 PM

Comments on this story (91)

Richard J. Brennan

OTTAWA BUREAU

The Liberal government released a big-spending budget today featuring the largest deficit in Ontario history and a new blended sales tax that will make everyone's wallet a little lighter.

In an attempt to fight the recession, the government is rolling out record infrastructure spending of $27.5 billion plus $5 billion from Ottawa to create jobs, more than $10 billion in tax cuts and a couple of billion dollars more in sales tax.

[DrGreenthumb]

http://www.thestar.com/News/Ontario/article/608870

14.1 billion deficit is largest in the history of Ontario

At least the Liberals TAX and spend. The Conservatives seem to think they can cut taxes while increasing spending, and everthing will balance out just fine. I think the Conservatives should go back to high school and take a practical mathematics course.

[madmax]

At least the Liberals TAX and spend. The Conservatives seem to think they can cut taxes while increasing spending, and everthing will balance out just fine. I think the Conservatives should go back to high school and take a practical mathematics course.

The Liberals are cutting taxes for those making the most money. They are increasing their regressive tax that has a larger negative effect on the poor and working poor.

This should just about kill low to middle class consumption.

[tango]

http://www.thestar.com/News/Ontario/article/608870

14.1 billion deficit is largest in the history of Ontario

TORONTO STAR FILE PHOTO

Ontario has taken the lion’s share of job losses in Canada.

Budget speech word cloud $56.8B deficit over seven years

Here are highlights of Finance Minister Dwight Duncan’s budget:

— $56.8-billion deficit over seven years as province grapples with global economic downturn.

— A harmonized 13 per cent sales tax beginning July 1, 2010 that will raise costs on a myriad of goods and services, including home heating oil.

— A family with an income of $160,000 or less to get $1,000, spread over three payments starting June 2010, to ease transition to new sales tax.

— A single person with an income of $80,000 or less to get $300 to ease transition.

— $32.5 billion for infrastructure spending over two years, including $5 billion from Ottawa, to sustain some 300,000 jobs.

— $4.5 billion in tax relief for business over three years through corporate income tax cuts.

— Income tax cut for 93 per cent of Ontario taxpayers, including an average 10 per cent cut for people earning less than $80,000.

— Ontario Child Benefit accelerated, giving low- and middle-income families up to $1,100 per year per child.

— Total budget spending of $108.9 billion for 2009-10 with a $14.1-billion deficit.

Mar 26, 2009 04:49 PM

Comments on this story (91)

Richard J. Brennan

OTTAWA BUREAU

The Liberal government released a big-spending budget today featuring the largest deficit in Ontario history and a new blended sales tax that will make everyone's wallet a little lighter.

In an attempt to fight the recession, the government is rolling out record infrastructure spending of $27.5 billion plus $5 billion from Ottawa to create jobs, more than $10 billion in tax cuts and a couple of billion dollars more in sales tax.

Now ... let's see the data for the federal TORY deficit!

Seems both parties can do it!

[jdobbin]

The Liberal government released a big-spending budget today featuring the largest deficit in Ontario history and a new blended sales tax that will make everyone's wallet a little lighter.

In an attempt to fight the recession, the government is rolling out record infrastructure spending of $27.5 billion plus $5 billion from Ottawa to create jobs, more than $10 billion in tax cuts and a couple of billion dollars more in sales tax.

The deficit certainly is a bitter pill to swallow for Ontario.

It seems like couple of decades since they have had budgets that were not depressing.

Are you against the harmonized tax in principle or because of the timing?

What do you think the government should have done?

[Chuck U. Farlie]

I know you weren't asking me, but I am against the HST only because of the timing.

If we were booming and unemployment was low, and while I don't like taxes much, increasing consumption taxes while decreasing income taxes seems a good way to go.

However, when people are already not spending, people are losing jobs, and businesses are struggling, the last thing we should do is increase consumption taxes (which increases what companies will have to charge their customers).

I feel this move will only serve to prolong the recession in Ontario.

Early in 2010 people might spend a bit more on large items only to avoid the upcoming merge of taxes, but after June or July when the HST is brought out, people will likely stop spending (similar to the Millar land transfer tax in toronto - housing sales boomed just before it was implemented).

[tango]

I know you weren't asking me, but I am against the HST only because of the timing.

If we were booming and unemployment was low, and while I don't like taxes much, increasing consumption taxes while decreasing income taxes seems a good way to go.

However, when people are already not spending, people are losing jobs, and businesses are struggling, the last thing we should do is increase consumption taxes (which increases what companies will have to charge their customers).

I feel this move will only serve to prolong the recession in Ontario.

Early in 2010 people might spend a bit more on large items only to avoid the upcoming merge of taxes, but after June or July when the HST is brought out, people will likely stop spending (similar to the Millar land transfer tax in toronto - housing sales boomed just before it was implemented).

Hmm ... you're making me think ... People who are (or were) average earners just don't have more to spend. The spending will have to be done by the wealthy, to pull us out of this! I think they'd better just keep quiet and buy and buy ... and pay and pay!

It's the least they can do for the priviledge of getting rich off our labour!

Edited March 28, 2009 by tango

[jdobbin]

I know you weren't asking me, but I am against the HST only because of the timing.

If we were booming and unemployment was low, and while I don't like taxes much, increasing consumption taxes while decreasing income taxes seems a good way to go.

My preference would be the same. Aren't there income tax cuts in this budget as well?

However, when people are already not spending, people are losing jobs, and businesses are struggling, the last thing we should do is increase consumption taxes (which increases what companies will have to charge their customers).

Why do you think they are doing it?

I feel this move will only serve to prolong the recession in Ontario.

Early in 2010 people might spend a bit more on large items only to avoid the upcoming merge of taxes, but after June or July when the HST is brought out, people will likely stop spending (similar to the Millar land transfer tax in toronto - housing sales boomed just before it was implemented).

Was there a similar decline when the GST was announced?

[Chuck U. Farlie]

I don't remember when the GST was brought out anymore... I am only 33.

All I can base my assumptions on is that if this HST was brought out tomorrow, I would stop spending or I would only spend money at flea markets or chinatown (black market)... I would do that, while hoping that others do the same, to purposely send the government a message.

In my personal situation, I am already making plans to relocate to Alberta. I have always liked Calgary, and there seems to be many things that I agree with in Alberta - lower taxes, privately run beer stores, fewer liberals and ndpers, and some mountains.... Fortunately I work for Canada Post, so it should be fairly easy to arrange for a transfer.

[jdobbin]

I don't remember when the GST was brought out anymore... I am only 33.

I don't remember a decline when the GST was increased. I do know some people tried to avoid the tax by paying under the table and still do.

All I can base my assumptions on is that if this HST was brought out tomorrow, I would stop spending or I would only spend money at flea markets or chinatown (black market)... I would do that, while hoping that others do the same, to purposely send the government a message.

Unless you cut all spending, I don't know how one could completely avoid the tax.

Also, isn't the tax now built in as the total price or is still added on that end. I wasn't sure what it was going to be.

In my personal situation, I am already making plans to relocate to Alberta. I have always liked Calgary, and there seems to be many things that I agree with in Alberta - lower taxes, privately run beer stores, fewer liberals and ndpers, and some mountains.... Fortunately I work for Canada Post, so it should be fairly easy to arrange for a transfer.

You have to work where you're happiest.

Alberta does have a pretty big deficit this year and spend like crazy. I hope they don't end up like they did last time and have to put Alberta through a lot of pain in the aftermath.

[Randy Nicholas]

I don't remember when the GST was brought out anymore... I am only 33.

All I can base my assumptions on is that if this HST was brought out tomorrow, I would stop spending or I would only spend money at flea markets or chinatown (black market)... I would do that, while hoping that others do the same, to purposely send the government a message.

In my personal situation, I am already making plans to relocate to Alberta. I have always liked Calgary, and there seems to be many things that I agree with in Alberta - lower taxes, privately run beer stores, fewer liberals and ndpers, and some mountains.... Fortunately I work for Canada Post, so it should be fairly easy to arrange for a transfer.

Passively sending the government a message is a waste of time. Will you send that message and then still drive on the roads, use the hospitals? Call 911 if you need to? Send your kids to school? If you live in a place it is your civic duty to pay the taxes. Not having a provincial sales tax just means they take it straight from your income instead. I doubt if you'll be saving any money in Calgary.

Alberta has fewer people, so fewer bills to cover, but as more people minded like yourself make the trek, that will change.

I know I'd like an Ontario with fewer conservatives! enjoy your life out west.

[daniel]

http://www.thestar.com/News/Ontario/article/608870

14.1 billion deficit is largest in the history of Ontario...

One of the biggest criticism of McGuinty was that he was acting too much like Stephen Harper:

http://www.thestar.com/News/Ontario/article/610319

This large deficit is just another example.

Edited March 31, 2009 by daniel

[WIP]

I never voted Liberal in the provincial elections, but what the hell do people expect McGuinty to do with this mess? Industry here in Ontario is grinding to a halt, plants are closing right and left, is it any surprise that the provincial deficit is growing? When Bob Rae was running 10 billion dollar a year deficits (which were actually 12 billion if his sales of Crown assets weren't included), the tax base wasn't collapsing as it is now. I'll be honest, I wouldn't want to have his job right now, and from what I am seeing, Stephen Harper is doing worse because he has a lot more options as Prime Minister, than a provincial premier has to affect the economy.

[Chuck U. Farlie]

Passively sending the government a message is a waste of time. Will you send that message and then still drive on the roads, use the hospitals? Call 911 if you need to? Send your kids to school? If you live in a place it is your civic duty to pay the taxes. Not having a provincial sales tax just means they take it straight from your income instead. I doubt if you'll be saving any money in Calgary.

Alberta has fewer people, so fewer bills to cover, but as more people minded like yourself make the trek, that will change.

I know I'd like an Ontario with fewer conservatives! enjoy your life out west.

I wish I had the option to only pay for the services I use - I am tired of (being middle class) having to subsidize the rest of society.

I only drive about 10000km a year, I'd be happy to pay a toll instead of gasoline tax, vehicle tax, etc..

I don't have kids and never will, I would be happy to opt out of paying for other people's kids education. If you want to have kids, you pay for them. The world has too many people as it is; I shouldn't have to pay for others irresponsibility.

I'd be happy to pay for private health insurance or directly to clinics if I had that option. I haven't been to a doctor in 4 years, and the last time I went was in Indonesia where I visited a western trained private doctor - it was very fast, efficient, and not very expensive.

I think I would save money in Calgary. No PST, and from what I have seen the provincial income tax rates are lower than Ontario and are some of the lowest in Canada. It seems that housing is just as expensive as here in the GTA, and I haven't checked out property tax rates yet so I don't know if I would save money or just break even there. I know I would be saving money on insurance premiums.