Monday, October 15, 2007

Trial Balloon?

Just caught Linda Leatherdale on CHML's Bill Kelly show.

Linda wonders if the email she discussed in yesterday's Sun was a leak, unsubstantiated rumour or a trial balloon?

CHML has a call in to Finance Minister Greg Sorbara.


Now I'm wondering if this was code for PST tax increase? - "Finance Minister Greg Sorbara said dealing with the financial difficulties of municipalities will be a priority".


* * * *
Related: Library cuts may have backfired, board says - Star. Such competence!

Even His Blondness has to come clean at some point! Miller expected to name external audit panel. (Star)

Kevin Gaudet - Ontario needs a new direction.

13 comments:

Calgary Junkie said...

Linda, rumour is high in the finance department at Queen's Park that after the federal budget reduces the GST by 1% and cuts personal taxes, the Liberals will introduce a 2% PST increase, with 1% for the municipalities and 1% for public transit," states an e-mail from a reader who will remain anonymous.

And so the genius of Harper's GST cuts is slowly being revealed. The Opposition, the pundits, the economists all panned Harper, saying GST cuts were the wrong way to go.

I've always believed that the main point of these cuts was to create highly visible tax room for the provinces to take up. The provinces then collect more and more of their revenue directly to fund their responsibilities (social programs, health care, the cities, etc). At the same time, there will be less and less transfers from Ottawa to the provinces (except for the equalization payments).

Eventually, the GST will be down to zero. The $40 billion or so of tax room that creates, is there for any province to take up (if they want). And another bonus is that businesses have less paperwork, only collecting sales taxes for one level of government.

This is the kind of stuff that Duceppe has been calling for. I'm sure McGuinty wanted it too, but couldn't cause a split from the LPC position of having a strong central government.

SouthernOntarioan said...

Funny though, I'm sure that Dalton wouldn't have campaigned on a 2% PST increase.

I think it might not be a bad idea when coupled with a 2% drop in the GST, but only because it is an agreement to transfer taxation authority to the province in a way.

Joanne (True Blue) said...

Mmm.. How very interesting. And the beauty of it is that the provincial government level has to wear the tax increases if they insist on a tax & spend program. The ones that are fiscally responsible won't need to keep raising their PST's.

Yes, genius indeed.

Möbius said...

Flaherty clearly mentioned this a year or so ago, if I recall correctly. The provinces wanted more cash, and he said to increase their sales taxes to offset the GST cut if they wanted it so much.

Rather than a hidden tax, the provincial sales tax is relatively progressive and transparent. Not that I like it or anything!

Joanne (True Blue) said...

The provinces wanted more cash, and he said to increase their sales taxes to offset the GST cut if they wanted it so much.

Now how does this mesh with an election pledge of no tax hikes?

Möbius said...

Now how does this mesh with an election pledge of no tax hikes?

Well, obviously, that would then be a broken promise/lie, if it were to come to pass.

McG could claim that it's not a tax increase, because it is only an increase of a decrease of the GST. That's the way politicians think... :)

Joanne (True Blue) said...

McG could claim that it's not a tax increase, because it is only an increase of a decrease of the GST. That's the way politicians think... :)

That's just scary.

Northern Ontario Tory said...

That's the way politicians think... :)

Some would say that is an oxymoron? :-)

Anonymous said...

The other thing this does is shift the accountability from the feds. to the province. That's the truly scarey part for me because this gov't is not accountable at all for OUR money.

There's also a smoke and mirrors exercise being played here by McGuinty re: his no new taxes promise.

Joanne (True Blue) said...

That's the truly scarey part for me because this gov't is not accountable at all for OUR money.

Giving McSpendy more control over our tax dollars is like giving matches to a child.


There's also a smoke and mirrors exercise being played here by McGuinty re: his no new taxes promise.

Exactly. Did you notice that towards the end of the campaign and especially just after winning, that he never came right out and said he wouldn't raise taxes? He obfuscated and danced around the question, but he never said no.

Our local MPP was interviewed the day after the election, and he was specifically asked if the government would keep its promise not to raise taxes. He came out with some prepackaged drivel, but did not say 'no'.

Provincial taxes are going up. You can take that one to the bank.

liberal supporter said...

OUR money

Why do you consider it "OUR" money?

Do you buy a car then demand that GM spend YOUR money in your approved way?

We pay taxes. We are buying a service. It's called peace, order and good government.

Perhaps you'd like a refund for the shoddy product, but it is not YOUR money, once the payment is made.

Joanne (True Blue) said...

L.S. - Unlike G.M., the government should always be accountable to the people regarding finances. This is why we have auditors-general.

Any government that doesn't believe they are accountable to the people for every cent are in danger of either becoming a dictatorship, or of being turfed out.

Möbius said...

Perhaps you'd like a refund for the shoddy product, but it is not YOUR money, once the payment is made.

If I freely give money to GM to buy a car, then I'm buying a car.

If I give my money to the government, I expect them to spend it to improve our society in some manner. Not their friends, corporations, cricket clubs, etc.

Wonder why people get cynical?