Ontario's Minority Government looks to be getting the backing of the Hudak Conservatives. Some of you may see that as a surprise. I for one am not at all surprised at this. Hudak doesn't want an election right away. McGuinty will use this first year to cut and slash as much as he can so he can have more good news announcements as we close in on an election, likely in two years.
The Liberals have teamed up with Don Drummond, former chief economist for TD Canada Trust. Drummond has said spending has to be kept at one percent over the next six years. McGuinty and his government have already agreed to this number.
Drummond is supposed to provide the government with a report as to how the government can do this. He has met with the Conservative leader Tim Hudak who says that cuts need to be made to everything except education and health. Andrea Horwath is supposed to meet with Drummond on November 17. Today Horwath told the Toronto Star that Drummond, Hudak and McGuinty are three peas in a pod. Horwath added that she was disappointed that these people felt that families had to bear the burden of budget slashing.
From the outside looking in I too have to say that the three gentlemen seem to be fixated on slashing government revenues. The current government is moving to cut corporate taxes, a move that will see less revenue coming in. With less revenue, the government will cut spending even more to balance the budget in six years.
The current federal government promised to eliminate the deficit in three years. Now they say it will be longer, in the medium term, before they balance the budget. One of the reasons given for this failure, wait for it... falling corporate income tax revenue. Has anyone reminded the Finance Minister that he has been lowering these taxes for years now? That another decrease in Corporate taxes is coming on January 1st.
We can raise corporate taxes. The companies won't run away. These companies are already sitting on hundreds of billions of dollars. They aren't doing their part to help bring us out of this mess. They need to spend some money creating jobs.
It obvious the government has blinders on. Ontario businesses already pay low taxes when compared to our competitors.
I have a good idea as to what Horwath will say to Drummond when she meets with him on November 17th. I even have a good idea how her suggestions will be received. They will be crumpled up and tossed in the garbage can after the meeting.
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