Article: Why is Ontario a have-not province?

By Peter Shurman
Posted: 2008-11-13

I know what you are thinking, because I am thinking the same thing. I never thought I?d see the day when Ontario, long considered Canada?s economic engine, would find itself on the ?have-not? list.Although it is understandable that our province would not escape unscathed through the economic turmoil that is affecting much of the world today, it is unforgivable that the McGuinty government, despite warnings from experts and us in the opposition, despite increased taxes and record revenues, maneuvered Ontario into a deficit and attacking small businesses. Yes, I said ?attacking?.

Ontario, with uncompetitive high taxes and increased government spending, has lost more than 200,000 well-paying jobs. Rather than revitalizing small businesses and encouraging investments, the McGuinty Liberals have fallen back onto their default position: when in doubt, tax and charge.

They recently introduced a policy (Bill 119) that would force small businesses to pay, on average, $11,000 in extra fees for government workplace insurance. It would force office workers and company directors to pay for the same coverage as iron workers and heavy equipment operators.

Even those who already have workplace insurance, often at cheaper rates with better coverage, would be forced to pay these extra premiums.

At a time when businesses are faced with the possibility of closing down and laying off employees, the McGuinty government is pushing them out the door.

With their profits down and future uncertain, small businesses can?t afford to pay an extra $11, 000. They will either be forced out of business or into the underground economy, neither of which is good news for the provincial government, at risk of losing revenue it can?t afford to lose right now, or for Ontario, which has suffered enough job losses already.

Sadly, this is the ?tax now and ask questions later? McGuinty Liberal philosophy that has pushed Ontario into have-not territory.

Businesses and Ontarians are getting fed up with this philosophy. On Wednesday last week, PC Leader John Tory with PC Labour Critic Bob Bailey and Judith Andrew, vice-president of the Canadian Federation of Independent Business (CFIB), called on the McGuinty Liberals to kill this bill, instead of killing small businesses.

Andrew, whose organization represents over 40,000 small businesses in Ontario (roughly 50 percent of the province?s jobs), called the legislation a ?betrayal of small and medium-size business?. The McGuinty government didn?t even bother consulting the CFIB before introducing this bill.

Meanwhile, experts suggest that Ontario will not shed its newly acquired have-not title for a number of years.

The thoughtlessness that the McGuinty Liberals have shown with this misguided legislation will not help Ontario off that list any faster.

Why is Ontario a have-not province?

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