Government finance
Toronto--The only way the Ontario government can avoid a budget deficit in 2001-02 is to suspend the implementation of further tax cuts.
That's the conclusion of a study prepared for the Ontario Alternative Budget project by CCPA Senior Research Associate Hugh Mackenzie, who is also Research Director for the Steelworkers.
This report finds that the only way the Ontario government can avoid a budget deficit in 2001-02 is to suspend the implementation of further tax cuts. Contrary to the government's claim, Ontario does not have a spending crisis. Instead it has a revenue crisis--one created by the government's own policies.
In its annual pre-budget analysis, the Ontario Alternative Budget Working Group has a simple message for the Harris Government: "Park the ideology and call off the dogs. Put the corporate tax cuts on hold. And put a stop to the attacks on education, health care, public infrastructure and the homeless."
In a study released today the Ontario Alternative Budget says that the Harris Government's tax cuts are the sole reason why Ontario is facing a revenue crisis.
The study documents that the Ontario fall economic statement "misrepresents the current state of Ontario's economy. It misrepresents our near-term economic prospects. It misrepresents the governments's fiscal position. It misrepresents the reasons for Ontario's tightening fiscal circumstances."