I’ve been mulling over the recent Ontario provincial election and wondering if the dark cloud is truly as dark as I thought it was on October 11th.
Well it isn’t. I believe I have found the silver lining.
As per the recent Throne Speech, the federal Conservatives will be doing three things in the coming session of Parliament that when taken together are greater than the sum of the parts.
1) They will be working to move the Federal government out of programs that are Provincial jurisdiction and
2) They will be cutting the GST another point to 5%, and
3) They will be making broad based tax cuts.
When you mix these three with the previous promise to correct the Fiscal Imbalance the sum is greater than the parts. The Feds will fix the Fiscal Imbalance by letting the provinces take more control of their own spending and programs, which costs the Feds less and the provinces more.
Well there is a rumour floating out there that if the GST is cut a point, Quebec plans to raise the provincial tax by that same point to compensate for these downloaded services.
Well if Quebec does it, you can be sure several other provinces will too. And that probably includes Ontario.
When you think about it, if the provincial Tories won the election and then had to raise taxes, they would never have been able to live it down or criticize Dalton McShifty again.
But if services are downloaded to the provincial Liberal government and Yellow Bellied McShifty is required to raise taxes to compensate, you can be sure that tax payers will not treat the Liberal brand in Ontario well.
When Dalton first said he would not raise taxes and did, we were upset but we swallowed it. In the last election he also promised that he would not raise taxes. But if PST goes up to 9% when the GST drops to 5% then you can be sure that the Liberal name will be as good as dirt for one, two and maybe even three elections.
So there is the silver lining for you Ontario Tories out there.