Thursday, November 20 2014

November 19, 2014 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday, November 20 2014

Charles Sousa won’t rule out Ontario tax hike

As the Liberal government staggers under the weight of a $12.5-billion deficit, Finance Minister Charles Sousa refuses to rule out raising taxes.

“I am concentrating on those measures that I have spoken about already, which are making certain that the underground economy is addressed, looking at ways to expand our revenues through our assets, looking to ensure that we transform government,” he told reporters after question period.

A day after delivering his fall economic statement, Sousa told reporters he prefers to “maintain our tax rates the way they are now” but when asked seven times if tax increases could be part of his plan to bring in more money, Sousa wouldn’t dismiss an increase.

Progressive Conservative MPP Monte McNaughton, a leadership candidate, said the Liberals will take the easy way out.

“I think (Premier) Kathleen Wynne is going to take the easy route and that is to raise taxes instead of reducing spending,” McNaughton told the Star.

In the legislature, he asked Wynne: “How can you expect the people of Ontario to believe that you’ll balance the budget without raising their taxes when you keep overestimating revenue and won’t stop spending?”

The Liberals’ July budget did not increase corporate taxes but did increase taxes on aviation fuel and for individuals earning more than $150,000 a year.

Sousa said he wants to “plug the leaks that exist in our tax system” so that everyone pays their fare share. That alone could bring in $400 million more, he said. (Source: Toronto Star)

Tuesday July 15, 2014

July 14, 2014 by Graeme MacKay

By Graeme MacKay, The Hamilton Spectator – Tuesday July 15, 2014

Summer rerun for big spending Ontario budget

Ontario’s newly elected Liberals steamrolled ahead Monday with the same big-spending budget that triggered the June 12 election, despite opposition warnings that the $130.4-billion plan will trigger a downgrade of the province’s debt rating and lead to massive public-sector job cuts.

The Liberals didn’t even bother putting a new cover on the deja-vu document they had tabled back in May, its passage a foregone conclusion now that the party controls the legislature with a majority of seats.

“Ontarians gave our government a strong mandate to implement the budget and the plan that we took to the people,” said Finance Minister Charles Sousa.

The Liberals promise to spend $130 billion on infrastructure over a decade — including $29 billion for public transit and transportation projects — $2.5 billion in corporate grants to lure and keep businesses in the province and $1 billion to build a transportation route to the Ring of Fire mineral deposit in northern Ontario.

They also pledge to build new college and university campuses, create spaces for 15,000 more post-secondary students and increase the number of apprentices training in Ontario.

The province plans to hike taxes for individuals earning more than $150,000 as well as levies on aviation fuel and tobacco, and create an Ontario pension plan that will require contributions from both employees and companies.

Spending is forecast to jump by $3.4 billion this year, $900 million more than projected in the 2013 budget, with program spending expected to climb to $119.4 billion. That’ll push up the deficit to $12.5 billion this year, but the Liberals insist they’ll balance the books in 2017-18.

They are touting the budget, which has slowly leaked out since late March, as a plan that will provide the necessary cash injection to grow Ontario’s economy while holding the line on public sector compensation and finding other savings to staunch the red ink on schedule.

“It’s easy for some to suggest, don’t spend the money, don’t invest in transit and all these other things because it’s too expensive,” said Finance Minister Charles Sousa. “It’s more expensive if we don’t do it today.”

But the opposition parties warn it’s a ticking time bomb that will herald a new wave of public sector job cuts and provoke a downgrade of Ontario’s debt rating, jacking up borrowing costs that are already consuming about $11 billion a year — its fourth-largest expense. (Source: Metroland)

Wednesday, December 18, 2013

December 18, 2013 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday, December 18, 2013

Canada Pension Plan reform stalls without Ottawa’s support

Finance Minister Jim Flaherty insists economy too fragile for premium increases

Ontario is ready to go ahead with pension reform on its own after Ottawa blocked a consensus on Canada Pension Plan reform.

At a news conference following a meeting with his provincial counterparts in Meech Lake, Que., federal Finance Minister Jim Flaherty said now is not the time to move on the pension issue . Flaherty said there was a “frank discussion” about CPP changes, but he believes the economy is too fragile.

“We believe that CPP payroll taxes can hurt the economy and distract from what truly matters for all Canadians — keeping our economy strong and our finances in a strong fiscal footing is the plan of this government,” Flaherty said.

“Now is the time for fiscal discipline. And that is why all governments must focus on encouraging job growth and getting their fiscal houses in order. Now is not a time for CPP payroll tax increases,” Flaherty said.

Two hours later, Ontario Finance Minister Charles Sousa issued a press release saying the province would implement a made-in-Ontario solution to the pension conundrum.

“Given today’s unfortunate stall tactic by the federal government, we will move forward to implement a made-in-Ontario alternative to protect Ontario workers in their retirement,” Sousa said.

He laid blame for the lack of consensus squarely at Flaherty’s door, saying the federal minister was stalling what could have been an agreement among the provinces.

“Doing nothing is not a solution to this problem and will not give Ontarians the security they need to retire. We have to act and that’s what Ontario will do,” Sousa said. (Source: CBC News)

Friday, November 8, 2013

November 8, 2013 by Graeme MacKay

By Graeme MacKay, The Hamilton Spectator – Friday, November 8, 2013

Ontario Liberals won’t worry about $11.7B deficit if economy slows

Ontario is on track to eliminate the $11.7-billion deficit in the next four years without worrying about cutting programs, Finance Minister Charles Sousa said today.

The Liberal government is prioritizing investments in jobs before meeting “short term targets” to balance the province’s books.

“Stronger economic growth and new jobs are the surest, fairest path to higher revenues and a balanced budget,” said Sousa in this year’s fall economic statement.

Sousa added that the uncertain and slow recovery from the global recession has led to $5 billion less in projected provincial revenues since 2010.

The province has revised its estimates of economic growth downward because of the U.S. government shutdown and more modest exports from Ontario. Souza now assumes real GDP growth will be 1.3 per cent in 2013 and 2.1 per cent in 2014.

He said the gloomier economic picture did not affect the deficit forecast.

Earlier Thursday at a Toronto conference on public-private jobs in Toronto, Premier Kathleen Wynne said the Liberals were not relenting on their goal to cut the deficit.

“It’s not that we are saying we’re abandoning that and we’re going to now just spend and invest,” she said. “We’re the leanest government in the country. We need to continue to make sure that we control spending in a rational way, but I am determined that we are not going to cut and slash the services that people need.” (Source: CBC News)

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Tuesday, June 4, 2013

June 4, 2013 by Graeme MacKay

By Graeme MacKay, The Hamilton Spectator – Tuesday, June 4, 2013

Sousa wants transit funding meeting with Flaherty

Ontario’s Finance Minister is calling for a meeting with his federal counterpart to urgently discuss public transit funding in the province.

Metrolinx, Ontario’s transportation agency, recently proposed a number of measures to raise the $2 billion a year needed to fund transit, including a one percentage point hike in the HST for residents in the GTHA.

Flaherty has flatly rejected the idea of a regional tax hike, saying it would not be accepted by the federal government, which administers the HST.

But Sousa points out that Ontario has not asked the federal government for any changes to the HST as it continues to examine the Metrolinx proposals.

“We’ve made it clear that these are just recommendations. We’ve made it clear that we’re going to have engagement and discussions and we’re going to assess what this means,” Sousa told The Canadian Press in an interview.

“Let’s sit down and talk about the funding and what it is the federal government is going to do to support Ontario.”
Charles Sousa has written to Jim Flaherty asking Ottawa to participate in a discussion on how to best fund and support much-needed transit expansion in the province, particularly in the congested Greater Toronto and Hamilton Area.

Sousa’s letter on Sunday came in response to correspondence from Flaherty on Thursday in which the federal finance minister warned against making changes to the Harmonized Sales Tax. (Source: CBC News)