Sarnia & Lambton County THIS WEEK
Queen's Park Report with MPP Bob Bailey
Ontario Needs Tax Relief and Spending Restraint in 2010 Budget
03 February 2010
It's been a very busy year at Queen's Park as the PC Caucus and I have worked to hold the McGuinty government to account. Tim Hudak and the rest of our team have been inundated by your phone calls, letters and petitions in regards to the new Harmonized Sales Tax (HST). We have done everything that we can to ensure your voices are heard in the Legislature on this particular issue.
As you know over the past year, Dalton McGuinty's Liberals used their massive majority to ram through their $3 billion tax grab on middle class families and seniors, contained in this HST bill. This new tax, which takes effect on July 1st, 2010, will raise consumption taxes to 13% on home heating, fuel, snow removal and haircuts. Even funerals will be taxed, among other things. In effect, this new tax will on average, increase taxes for Ontario families and seniors to total approximately $1,100 a year.
As Ontarians across our province emerge from one of the greatest recessions in decades, I firmly believe that now is not the time to slap a new tax on the many people who have just begun to recover from the economic hardships of the last two years.
Unfortunately, however, it seems that Mr. McGuinty believes that tax grabs and reckless spending are right for Ontario. Since Dalton McGuinty came to office in 2003, Ontario's debt has grown by a staggering $65 billion and currently, the McGuinty Government is spending $2.8 million more per hour than they are receiving in revenue.
Nevertheless, last week saw just one more multi-billion dollar deal signed as Premier McGunity promised $7 billion to the Korean company Samsung to generate wind and solar power. While I do agree with the need for more renewable energy in Ontario, I disagree with bumping foreign companies to the head of the line and simply handing them sweetheart deals at grossly inflated costs to be paid for long after this current Government has been replaced.
First, what are we saying to the many in-province companies who have patiently waited for approval on their projects? And secondly, why has Mr. McGunity agreed to pay Samsung anywhere from 475% to 2,000% more than the current wholesale market price for electricity? The cost is simply another multi-billion dollar boondoggle, of which will ultimately be paid for by Ontarians in the form of their electricity bill.
It's definitely time to get back to the basics. Ontarians need tax relief as we emerge from the recession and spending must be capped on Mr. McGunity's pet projects. It simply doesn't make sense to increase government spending by 65% over a time period when Ontario's economy has only grown 5.7%.
My PC colleagues and I are calling on Dalton McGuinty and his Liberal Government to put the brakes on their reckless spending habits and provide tax relief to hard working Ontario families and businesses in their 2010 budget.
This week the Legislative Committee on Finance and Economic Affairs began their pre-budget consultations with people and organizations from across the province.
I want to ensure that you have the opportunity to share your views so I would like to invite you to an Open Forum with myself an MPP Lisa MacLeod, PC Critic for Revenue and Government Accountability, on the new HST at the Sarnia Royal Canadian Legion on Front St. from 3-5 pm on February 10th. I continue to welcome your questions and concerns. Phone: (519) 337-0051; Email bob.baileyco@pc.ola.org or through my website at www.bobbaileympp.com.
