Budget: Lower & Simplified

  • Posted on: 17 March 2013
  • By: Allen Small
Press Release

- M E D I A   R E L E A S E -

This is the fifth in a series of releases designed to introduce our new Campaign platform for 2013-14.

The impact of taxation and spending by government affects each and every person in Ontario and across Canada. Many people consider taxes as a necessary evil to maintain our civil society. But today taxes and spending by government greatly exceed what is required to maintain order in a civil society.

According to the Fraser Institute, the total tax bill for an average Canadian family rose 1738% from 1961 to 2011, while the cost of living for the same family, which includes food, shelter, and clothing rose just 663%. For each dollar removed in tax, a family or an individual has one less dollar of choice to spend on themselves and their own needs.

Was society less civil 50 years ago? Certainly not! Today governments are doing far more than necessary to maintain a civil society. To compound the problem, the present Ontario Liberal government, has borrowed and spent so heavily over the past 10 years, that the resulting debt has caused Ontario’s credit rating to be downgraded by two ratings agencies.   

The Ontario Libertarian Party believes that government revenue is essential to maintain law and order in Ontario, which is the primary function of government. However, present and past governments have created a system where too many individual and family responsibilities have been usurped by government. The creation of new programs and the continuation of unnecessary old programs have resulted in political parties competing to buy the votes of lobby groups. Each program requires more taxation or borrowing while citizens and businesses have less money to make economic choices. It damages the real economy and threatens the financial well being of present and future generations. The massive debt could mean our children and their descendants will pay for the benefits bestowed on us, while those same benefits will not be available to them. 

For Ontario Libertarians restricting the power to tax and spend is central to our goal of limiting government. To address that goal Libertarians would first halt the continued growth of the government at present levels, no new spending, and no increases to salary, benefits or bonuses for any government employees. Ministries and agencies would be directed to find real cost saving measures immediately. Some ministries and agencies would be amalgamated with others, or have their responsibilities shifted to the free market in an orderly fashion. Corporate handouts would be stopped and tax loopholes for corporations and individuals would be closed. The immediate goal is to reduce government spending so that it falls well below the level of revenues.

Once that has been achieved, Libertarians would reduce provincial income tax tier rates, as well as the HST, and gasoline taxes. Corporate taxes would be reduced then eliminated, because those costs are passed on to consumers anyway. All those measures taken together would encourage investment and the creation of thousands of jobs in Ontario while letting people keep more of their earnings.

Longer term the size and spending of ministries and agencies would continue to be reined in, so that the need for revenues would be reduced. Eventually a flat tax, based on a fixed percentage of income would replace the income tax and remain until the debt was eliminated.

Ontario Libertarians believe in limiting spending to only core functions of government, defending life, liberty, and property. We expect the reduction in spending will allow substantial decreases in taxation. Citizens of Ontario should have as much personal and economic freedom as possible.

 

The Ontario Libertarian Party has been a registered political party since 1975. We advocate free markets, property rights, limited government, and voluntary interactions within communities between individuals and groups. Contact: info@libertarian.on.ca

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