Analysis of Ontario Budget in the context of the election by: Trish Hennessy, Ricardo Tranjan and Sheila Block, Canadian Centre for Policy Alternatives – Ontario Office
… Meanwhile, the decision to put off raising any significant new taxes in order to ensure fiscal health in light of long-term slow economic growth projections means the government heads into this election with a deficit-funded platform. The technical adjustment in the personal income tax system from surtaxes to adjusted brackets and rates will increase taxes paid by higher income Ontarians by $275 million. At most, higher income earners will pay $200 more per person. Otherwise, when it comes to taxes nothing much to see here.
The wise Alex Himelfarb, CCPA-Ontario advisory board chair and former clerk to the Privy Council, has said governments that are afraid of taxes have two choices: sell off public assets or take on a deficit. This government has already sold off public assets, including the majority share of Hydro One, which is one of the most unpopular things it has done. Keeping public assets in public hands makes more sense since it gives government greater control.
Going into deficit is the better trade-off between the two options, but we do pay the price for tax avoidance. Had the government turned to key revenue tools to raise taxes during these past few years of reasonable post-recession economic growth, it would have been better positioned to make these needed investments in hospitals, pharmacare, dental care, child care, and more. There would have been less catching up required.
See the analysis here: http://behindthenumbers.ca/2018/03/28/ontario-budget-placeholder/
Impressive — program level analysis of Ontario provincial budget from Doug Allen to the Ontario Council of Hospital Unions. http://ochuleftwords.blogspot.ca/2016/02/health-care-declining-as-share-of.html It incorporates a longer view of where we have been and are going.
The Ontario government spent 1.6 per cent less of provincial Gross Domestic Product (GDP) compared to the other provinces in 2010-11. With sharp cutbacks in Ontario, that gap had increased to 2.1 per cent by 2014/15. On this basis, Ontario spent about $15-billion less on programs than the other provinces and territories. On a per capita basis, Ontario is the lowest spending (and lowest revenue) provincial government in Canada. Ontario spent $1,200 less per person in 2010/11 than the other provinces and territories and almost $2,000 less per person in 2014/15. Here the gap is even larger – Ontario spent about $27-billion less on a per capita basis than the other provinces and territories.
The gap is almost certainly growing. In 2015/16 Ontario program spending increased at less than 2/3rd the rate of nominal economic growth, according to the 2016/17 budget. That budget also forecasts increased spending to go up just less than 1 per cent in 2016/17 – or about a quarter of the forecast nominal economic growth. Ontario program spending will continue to decline as a share of the economy. These real funding cuts are having a serious impact on public services
See more of the article and ensuing links. http://www.socialistproject.ca/bullet/1240.php#continue