Monday, December 17, 2007

Scrap Don't Review Health Tax

Taxpayers should keep their fingers crossed that the premier really enjoyed cutting business taxes last week, hoping he may do the same for individuals through cutting the health tax.

Ontario Premier Dalton McGuinty has reportedly tasked a committee to review the controversial health tax he imposed. The tax was imposed in his first budget in 2004 after having campaigned hard during the 2003 election using a promise to the Canadian Taxpayers Federation NOT to raise taxes.

A majority of voters in the recent election voted for parties who promised either to eliminate or reduce in part the hated health tax.

The tax generates $2.6 billion a year in government tax revenue. This is roughly equal to the amount of the government surplus DESPITE the government having increased spending by $2.2 billion more than it had budgeted this year.

Instead of reviewing the tax the government should scrap it, plain and simple. Premier McGuinty stated during the election that he would not reduce or eliminate it. Keep in mind that he promised not to reduce taxes and yet he did so for businesses last Thursday in his economic update. There is some faint that hope that he may do a u-turn on this one.

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