Buy Vaseline Stock Because Ontarioians Are Going To Get Screwed Again

Ready for more hikes? Ontarians already pay some of the highest taxes in the country, but more are to come

By LINDA LEATHERDALE, BUSINESS EDITOR

Did you read his lips?

"We're not going to raise taxes," Dalton McGuinty promised.

Well, just like the lies he told us four years ago, that was before the election. This is after. So, here we go.

"Linda, rumour is high in the finance department at Queen's Park that after the federal budget reduces the GST by 1% and cuts personal taxes, the Liberals will introduce a 2% PST increase, with 1% for the municipalities and 1% for public transit," states an e-mail from a reader who will remain anonymous.

The e-mail went on: "They say this is why (Toronto Mayor David) Miller laid off in the provincial election."

As I've warned, we've been fooled again. Prime Minister Stephen Harper gives another 1% cut in the hated GST to 5%, and Premier McGuinty hikes the 8% PST to 10%, if this rumour is correct.

Well, no sooner did Flip-Flop McFly win another majority government than a congratulatory letter from the Toronto Board of Trade landed on his desk urging him to get on with funding public transit and reforming the provincial sales tax (PST).

Coincidence?

The board is adamant it doesn't want higher taxes, but with a $500-milion budget shortfall at City Hall "we have to be realistic," spokesman Glen Stone said.

On public transit, the board wants a return to Queen's Park sharing the funding of both capital and operating costs of transit, plus increased support for the Greater Toronto Transportation Authority.

McGuinty has already promised to spend $11 billion in capital investment on transit in the GTA over the next 13 years. And with PST reform, the board not only wants municipalities to be exempt from paying the provincial sales tax -- but it wants the PST changed to a value-added tax, like the GST, meaning manufacturers would no longer pay the PST twice -- once on raw materials, then on manufactured goods.

TAXED OUT

Go back to 1990 and Brian Mulroney's Tories. Ottawa hiked the federal manufacturers' sales tax to 13%, then axed it to usher in a 9% GST, which was later dropped to 7% amid the biggest tax revolt this country has seen.

With these tax changes, manufacturers don't pay twice.

The board is also for harmonizing the GST with the PST, which means a bigger tax burden as the provincial sales tax would not be slapped on services, as well as goods.

Bottom line is, one taxpayer, one pocket. And we're taxed out.