Two Takes On Taxation

The contrast couldn't be more striking. As announced by federal Fiance Minister Joe Oliver the other day, Ottawa is well on its way to posting a $9 billion surplus, but Canadians shouldn’t expect any massive new spending programs. Instead, he plans to reduce taxes once the deficit is eliminated in the 2015-16 budget, likely next winter.

On the other hand, the Ontario government, under Premier Wynne, proposes a host of new spending and moderate tax increases under the budget it brought down yesterday.

Progressive measures include raising the wages of home care workers, more money for infrastructure, welfare hikes, new health benefits for children and a plan to hire at-risk youth in provincially funded infrastructure projects.

Perhaps the boldest proposal is an Ontario Pension Plan that will, years down the road, alleviate a good deal of the poverty faced by retirees who currently don't have company pension plans, it is the same model that the Harper regime rejected as "too risky for our fragile economy."

Two competing visions of the role of government; the federal one, which appeals to the selfishness that resides in all of us, and a provincial one which, albeit an election budget, appeals to our better natures.

Which one will prevail? Who knows? But now might be a good time to watch the following TVO podcast, taken from Alex's Blog, in which Alex Himelfarb talks with Steve Paikin about why taxes should not be considered a four-letter word: