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A Capitalist's Guide to Ontario's Budget

March 26, 2008 by  

REVENUES (Billions)

Income/Property Taxes:

  • 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

ANALYSIS

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.

Comments

4 Responses to “A Capitalist's Guide to Ontario's Budget”

  1. Ron Payne on March 26th, 2008 8:43 am

    Welfare of various sorts: $11.8
    Please tell me you have a break down for this, that you could share or send me.

    WHO IS REALLY COMMITTING THE FRAUD AROUND HERE

    The general public has no idea what the system is really like. They think fraud is ramped in Ontario Works and ODSP. Here is something to think about and it is just the tip of the iceberg according to our research.
    The provincial government says welfare fraud is around 2%.
    Who is really committing the fraud around here?
    The federal government says income tax fraud is 13%

    Ontario Works staff charged in $1.3million Fraud
    By Sarah Elizabeth Brown Tuesday March 4,2008
    Chronicle Journal

    Government ODSP worker charged in $585,000 fraud case.
    By SooToday.com Staff Wednesday, November 14, 2007
    SooToday

    93.7 million dollars in corporate welfare
    Linda Leatherdale March 7,2008

    Premier Dalton McGuity is handing over a 9.7 million dollar corporate welfare cheque to Kellogg. Kellogg’s profit was $1 billion. Also Ford got a $55 million cheque and is now cutting shifts, while GM got $29million and is also cutting shifts.

    $150 million called corporate welfare for a profitable industry.
    Rob Ferguson January 10, 2008
    Queens Park Bureau
    The Ontario Government has earmarked $150 million to encourage pharmaceutical companies to do more drug research and manufacturing in the province.

    Ron Payne
    Welfare Legal
    Hamilton, Ontario
    E-mail welfarelegal2004@hotmail.com

  2. Ron Payne on March 26th, 2008 7:20 pm

    How to save money #2

    How about Welfare insurance. If your out of work you get benefits. Millions could be save in administrative costs. We could just tac it on to Employment Insurance Benefits.

    This was sent to the Premier of Ontario Dalton McGuinty, the Minister of Community and Social Services Madeleine Meilleur, Hamilton Mayor Fred Eisenberger and Hamilton city councilor Bernie Morelli, via e-mail on Feb 24 08.

    My question to you and to myself is how do they get away with the callous and unjust manner that workers approach their clients with, at Ontario Works, ODSP and even the Social Benefits Tribunal?

    The answer is very simple. BECAUSE THEY CAN

    For the record I would like to state, I have seen many improvements to the SBT since a change of it’s Chair and I expect to see many more. I can’t say the same for Ontario Works and ODSP.

    The research shows when clients have contact with workers the response is not always the same. You could ask three different workers the same question and receive three different answers.

    If the worker doesn’t especially like you, they will simply ignore you. This means things like no return phone calls, ignoring verbal requests for benefits, requesting more than usual documents be brought in to prove eligibility and so on.

    If the worker really doesn’t like you, they will often do everything in their power to harass, intimidate and frustrate you into giving up and going away. This means things like ignoring written requests for benefits, telling you that the benefit doesn’t exist, denying benefits when you are entitled and no decision letters and so on.

    If the worker does like you, they will give you any of the benefits that you ask for if you entitled. This is only if the worker is aware of the benefits requested. Here is an interesting problem. The vast majority of the workers are not aware of benefits that are available. This even includes some of the excellent workers. Another problem is that the fast majority of clients don’t even know what the benefits are.

    ********All clients must document, tape record and video record everything, every time when dealing with any OW or ODSP staff. ********

    The governments must, as a gesture of good will, give all Ontario Works and ODSP clients a written copy of the benefits that they say clients are entitled.

    This would be a first concrete step taken to start the process in eliminating poverty.

    Ontario Works Directive # 31.0 found at http://www.mcss.gov.on.ca/mcss/english/pillars/social/ow-directives/ow_policy_directives.htm or the:

    Ontario Disability Support Program Directives #s 9.1 to 9.19 Found at http://www.mcss.gov.on.ca/mcss/english/pillars/social/odsp-is-directives/ODSP_incomesupport.htm

    The only real remedy to this problem is for clients to sue their respective governments. For Ontario Works it would be their local municipal government and the Province of Ontario and for ODSP it would be the Province of Ontario.

    In the Ontario Works Act it states No personal liability

    77.(1)No action or other proceeding in damages shall be instituted against the Ministry, the Director, a delivery agent, an officer or employee of any of them or anyone acting under their authority for any act done in good faith in the execution or intended execution of a duty or authority under this Act or for any alleged neglect or default in the execution in good faith of any duty or authority under this Act.

    In the Ontario Disability Support Program it states No personal liability

    58. (1) No action or other proceeding in damages shall be instituted against the Ministry, the Director or a delivery agent, an officer, employee of any of them or anyone acting under their authority for any act done in good faith in the execution or intended execution of a duty or authority under this Act or for any alleged neglect or default in the execution in good faith of any duty or authority under this Act. 1997, c. 25, Sched. B, s. 58 (1).

    This means that a client could sue for damages if bad faith could be proven.

    It is called bad faith; a person who intentionally tries to deceive or mislead another in order to gain some advantage.

    It is called willful blindness or willful deceit.

    The government must get rid of the discretionary powers it allows workers in the OW and OSSP, Act, Regulations and Directives.

    You’re either entitled to benefits or your not. It is extremely simple but the government will not do it until it gets sued for Bad Faith.

    It’s so simple; all the government has to do is to look at how the federal government implements its Employment Insurance application process, and they are saving millions.

    To receive benefits you must go online to apply, with exceptions for some disabled clients. You fill out a simple template and the next thing you experience is a cheque in the mail. If the federal government trusts us why can’t you?

    Ron Payne
    Welfare Legal
    Hamilton, Ontario.
    E-mail welfarelegal2004@hotmail.com

  3. admin on March 26th, 2008 7:56 pm

    Ron wrote:

    “Please tell me you have a break down for this, that you could share or send me.”

    Hi Ron. As for current information, this is all that I can find online: http://ontariobudget.ca/english/chpt1c.html#c4

    Hope that helps.

    Cheers,

    Paul

  4. Bob Patrick on December 4th, 2013 8:07 pm

    If health care and education were defunded, we wouldn’t need income tax. I like sales tax because they leave you in control. You don’t have to beg some politician for some tax cut. Just by controlling your spending, you can give yourself a tax cut whenever you want!

    Alan Keyes is a genius! http://www.youtube.com/watch?v=zXHWFu4oGDU

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