revenues

Thursday January 29, 2015

Thursday January 29, 2015Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday January 29, 2015

Ottawa faces deficit with low oil prices, budget watchdog says

For SalePlunging oil prices will cost Ottawa billions of dollars in lost revenue but the Conservative government has enough wiggle room in its budget to weather the turmoil and still balance the books, the parliamentary budget officer says.

A new analysis released Tuesday confirms that low oil prices mark an unwelcome development for Conservatives and their pledge to balance the books this year.

In a report, <http://www.pbo-dpb.gc.ca/files/files/LowOilPrices_EN.pdf>  the budget watchdog assessed the shock of dropping oil prices on the federal fiscal picture and said it would mean, worst case, a deficit of $1.2 billion this year and a deficit of $400 million in 2015-16, even after exhausting a $3 billion contingency fund.

Still, officials with the parliamentary budget office said the government can tinker with its fiscal plans to show a surplus despite the oil price hit, allowing the Conservatives to keep their vow of a balanced budget

Mostafa Askari, assistant budget officer, said a balanced budget is “very feasible” in 2015-16 thanks to the government’s ability find savings by slowing spending or delaying capital projects.

“There are many ways that the government can actually find some revenues or some savings on the spending side to make sure the balance is there,” Askari said. (Source: Toronto Star)

 

Published on National Newswatch and in the Winnipeg Free Press.

Thursday, November 20 2014

Thursday, November 20 2014Editorial 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)

 

Wednesday February 15, 2005

Wednesday February 15, 2005By Graeme MacKay, Editorial Cartoonist, The Hamilton Spectator – Wednesday February 15, 2005

Jealous Eye

Prime Minister Paul Martin appeared to take an oblique swipe at Ontario Premier Dalton McGuinty on Monday when he said “all great Ontario governments” have understood the need to help less-prosperous regions of the country. Martin was responding to criticism from McGuinty about an offshore royalties deal signed Monday between Ottawa and the governments of Newfoundland and Nova Scotia.

McGuinty complained last week of a $23-billion gap between what Ontario contributes to federal coffers and how much it receives in return.

But Martin, who travelled to Newfoundland and Nova Scotia for the official signing of the offshore deals, said federal transfers to Ontario have increased almost 40 per cent in the last five or six years.

And he pointed out that Ontario will receive $2 billion this year and next in increased health transfers – or roughly 40 per cent of the total payout.

“This country is held together by the recognition that we are one nation,” the prime minister told reporters after the signing ceremony in Halifax. (Source: Hamilton Spectator)