A Capitalist's Guide to Ontario's Budget
March 26, 2008 by Paul McKeever
- Personal Income Tax $25.2
- Corporations Tax: $12.3
- Employer Health Tax: $4.8
- Ontario Health Premium: $2.8
- TOTAL: $45.1
Retail Sales Tax (8%): $17.2
Gasoline and Fuel Taxes: $3.1
Other Taxes: $3.5
KEY EXPENSES (Billions):
Government Health Insurance Monopoly $40.4
Tax-funded, government-owned/operated schools: $13.1
Post-secondary education/training: $6.2
Welfare of various sorts: $11.8
“Other Programs”: $11.9
…oh yeah, we almost forgot “Justice”: $3.7
It doesn’t take a genius to see that all but about $3.7B of the Ontario budget is spent on wealth redistribution schemes (and that’s all they are: it’s not as though health care or education services would disappear were the government to allow people to pay for them directly from the service providers).
Key considerations: notice the total of revenue that is taken in the form of income taxes ($45.1B). Note that income taxes – unlike retail sales taxes – can be imposed with progressive rates (i.e., with an income tax, the rate can be made to increase with the person’s income). Finally, note that health and post-secondary education are funded by an amount almost equal to the total of all income taxes.
Now ask yourself two questions:
1. Should I be free to purchase whichever health insurance plan suits my wants and budget?
2. Should I be forced to pay for my neighbour’s child’s Bachelor of Arts degree in sociology (minor in Soviet film studies)?
If your answers to these questions are 1. Yes, and 2. No, then it should be obvious to you that Ontario could eliminate income taxes without running a deficit…thus joining Texas, Florida, Alaska, Nevada and 3 other U.S. states that do not tax income.