Yorkregion.com - Editorials - Let's face it, Ontario taxes are high
Let's face it, Ontario taxes are high
Editorials
Mar 27, 2008 06:22 AM
The war of words between Finance Minister Jim Flaherty and Queen’s Park provided an interesting backdrop to Tuesday’s provincial budget. Mr. Flaherty insists Ontario’s high corporate taxes are hurting the economy at a time of economic uncertainty.
The provincial Liberals for the most part ignored Mr. Flaherty’s call for action on the tax front, instead announcing spending to retrain workers who have lost their jobs because of the high Canadian dollar, the slumping United States economy and, some would argue, high taxes in Ontario.
But that is their right. It is a duly elected government that, within the provincial domain, can manage matters as it sees fit.
What has been comical is the stance taken by Mr. McGuinty’s defenders.
For instance, Markham-Unionville MP John McCallum, Liberal finance critic, doesn’t dispute Ontario’s taxes are high. His just wishes Mr. Flaherty would quit pointing it out.
“To repeatedly tell investors from around the world that the last place they want to start a business is in Ontario is not only irresponsible, it is reprehensible and Mr. Flaherty should apologize to the 12 million people who live here,” Mr. McCallum said.
Perhaps Mr. McCallum is hoping a company might set up a manufacturing plant here, not realizing they would be paying the highest corporate taxes in the country if they did, if only Mr. Flaherty would keep quiet.
The truth is, we do have high taxes. We have high business taxes, we pay a special health tax, we even pay higher sales taxes.
In Alberta, there is no provincial sales tax. In Saskatchewan, it’s 5 per cent. In B.C. and Manitoba, it’s 7 per cent. In New Brunswick, Newfoundland and Nova Scotia, they pay a similar provincial sales tax as ours, but it is through a harmonized sales tax of 13 per cent that saves businesses time and money in terms of collecting and reporting it.
There may be trying times ahead for Ontario and there could be a lot of pain associated with that in lost jobs. In times of trouble, different experts call for different strategies — cut spending, increase spending, cut taxes, leave taxes where they are. Time will tell who was right, Mr. McGuinty or Mr. Flaherty.
In the meantime, however, there is no point in hiding our heads in the sand about the high level of taxation in Ontario, on all fronts. It’s a fact.