Ontario Ministry of Finance: Position Paper
Minister: the Honourable Simon Jefferies Deputy: the Honourable Kimia Karbasy
Amidst all of the current global economic uncertainty, action must be taken by the federal government in order to ensure economic stability in Canada. In order to stabilize the economy the federal government should provide money to the provinces to attract businesses and create jobs. As Ontario has been shortchanged in the past in equalization payments, Ontario is in favour of reforming the equalization payment system. As our unemployment rate increases basic services need to provide to the people in need. Now would be a good time for Canada to liberalize employment insurance. Ontario’s manufacturing industry, which Ontario’s economy is dependent on, is almost no longer in existence. Ridings around Ontario are losing revenue as living expenses increase. Ontario is Canada’s largest economy and would like to be active in reforming Canada’s financial structure. Now more than ever is the time for action.
The Ontario Government supports the introduction of a Harmonized Sales Tax. In order to attract businesses into Ontario and the rest of Canada we need to offer them incentives. In order to keep up with the rest of the world progress and change is necessary. The Harmonized Sales Tax will provide tax cuts to businesses when they need it most. By reducing all of the hidden taxes on goods businesses will save almost 4.5 billion dollars over a three year period in Ontario alone. Switching to a Harmonized Sales Tax would increase competitiveness in the market and increase the amount of jobs. 4 Canadian provinces have already made the shift to a harmonized-sales tax and Ontario would like to see the rest of Canada as well.
Ontario supports the reform of the equalization payments system. Many provinces pay into the pool of money but are unable to receive the proper amount of money to support future development. For years Ontarians have paid millions of dollars into equalization payments, and until only recently have not been able to properly utilize the money. Serious reforms are necessary in order to run the equalization payments system efficiently. As Ontario in the recent years has transitioned from a have to a have-not province, we now are in need of a strong and efficiently run structure. Ontario is suggesting a system where the provinces pay according to how much they take, where equality is the number one goal. This would allow each province to have an equal opportunity to develop economically.
The Ontarian Government and Ministry of Finance believes that in the current economic environment it is necessary to run a budget deficit. The recession has driven up demand for government services, and in order to provide for this increasing demand a deficit is the best option. The Ontario Government does not want to place a financial burden on the taxpayers of Canada. The majority of provinces in Canada are currently running a budget deficit as well as Alberta for the first time in 15 years. The deficit should be run to provide jobs and to stabilize our economy.
Ontario looks forward to working with the other delegations in order to improve the Canadian financial system. Together we can make Ontario and Canada better and stronger.
Minister: the Honourable Simon Jefferies Deputy: the Honourable Kimia Karbasy
Amidst all of the current global economic uncertainty, action must be taken by the federal government in order to ensure economic stability in Canada. In order to stabilize the economy the federal government should provide money to the provinces to attract businesses and create jobs. As Ontario has been shortchanged in the past in equalization payments, Ontario is in favour of reforming the equalization payment system. As our unemployment rate increases basic services need to provide to the people in need. Now would be a good time for Canada to liberalize employment insurance. Ontario’s manufacturing industry, which Ontario’s economy is dependent on, is almost no longer in existence. Ridings around Ontario are losing revenue as living expenses increase. Ontario is Canada’s largest economy and would like to be active in reforming Canada’s financial structure. Now more than ever is the time for action.
The Ontario Government supports the introduction of a Harmonized Sales Tax. In order to attract businesses into Ontario and the rest of Canada we need to offer them incentives. In order to keep up with the rest of the world progress and change is necessary. The Harmonized Sales Tax will provide tax cuts to businesses when they need it most. By reducing all of the hidden taxes on goods businesses will save almost 4.5 billion dollars over a three year period in Ontario alone. Switching to a Harmonized Sales Tax would increase competitiveness in the market and increase the amount of jobs. 4 Canadian provinces have already made the shift to a harmonized-sales tax and Ontario would like to see the rest of Canada as well.
Ontario supports the reform of the equalization payments system. Many provinces pay into the pool of money but are unable to receive the proper amount of money to support future development. For years Ontarians have paid millions of dollars into equalization payments, and until only recently have not been able to properly utilize the money. Serious reforms are necessary in order to run the equalization payments system efficiently. As Ontario in the recent years has transitioned from a have to a have-not province, we now are in need of a strong and efficiently run structure. Ontario is suggesting a system where the provinces pay according to how much they take, where equality is the number one goal. This would allow each province to have an equal opportunity to develop economically.
The Ontarian Government and Ministry of Finance believes that in the current economic environment it is necessary to run a budget deficit. The recession has driven up demand for government services, and in order to provide for this increasing demand a deficit is the best option. The Ontario Government does not want to place a financial burden on the taxpayers of Canada. The majority of provinces in Canada are currently running a budget deficit as well as Alberta for the first time in 15 years. The deficit should be run to provide jobs and to stabilize our economy.
Ontario looks forward to working with the other delegations in order to improve the Canadian financial system. Together we can make Ontario and Canada better and stronger.
