picture courtesy: www.canada-photos.com

From 2003-2007 the Ontario government has increased spending by two to three times the rate of inflation despite inheriting an apparent deficit. Of course, they paid for this fiscal negligence by overtaxing us by an even steeper rate. Now they want to pass themselves off as sound fiscal managers maintaining a prudent surplus. Addicted to raising taxes, some Liberals are even advocating raising the PST to reclaim some sort of tax room left by a reduction in the GST by the federal Conservatives.

The Ontario government should lead by example and show Ontarians how to live within their means by reducing spending and lowering taxes starting with the PST.

The PST is a complicated tax with many exemptions and different rates. But it is the basic consumer product tax that should be reduced, the tax on products made by our manufacturers hit hard by our rising dollar and cheap international labour.

The American economy is going through some turbulent times set off by a failing housing market. Ontario needs a plan to not only weather any storm that drifts north of the border, but to take advantage of it. Continued economic growth, low taxes and investment in education, training and technology must be key elements of such a plan. It is time for some real leadership from Ontario.