Drummond Report

Goober

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Again, it's people like you who create the problem by diverting the issue into politics. The PC hubris is the reason you lost the election, regardless of the financial situation. Too bad, so sad.

You won't.. evolve until you realize that.
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I think you should have read the column that had this nfo in the NP.

Drummond report signals start of Dalton McGuinty's lean years: Andrew Coyne | Full Comment | National Post

After the seven fat years come the seven lean. The government of Dalton McGuinty had a fine old time of it running Ontario the past seven years, dispensing tax credits and subsidies this way and that on the way to three consecutive election victories. Spending increased by 62% overall, about 25% after accounting for increases in prices and population. Now he will have the privilege of rolling most of it back.


So Drummond had a tall order in front of him from the outset. When inflation and population growth are factored in, holding spending to 0.8% annual increases for seven years works out to a 16.2% cut in real per capita terms. For sustained restraint, he says, this would be “unprecedented in the post-war period in Canada” — more than Ralph Klein’s cuts in Alberta, more even than Roy Romanow cut in Saskatchewan, and orders of magnitude more than the cuts imposed by the previous Conservative government, under Mike Harris. Yet it would still leave spending higher than when McGuinty took office — after inflation, after population growth.
 

mentalfloss

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Verrrry interesting...

The report is based on assumed GDP growth of only 2 per cent annually from 2014-18 --lower than the Ministry of Finance projections -- and the goal of eliminating Ontario's deficit by 2018.

The Commission was prohibited from considering revenues, but a recent report from the Canadian Centre for Policy Alternatives has shown that Ontario's deficit is largely equal to the cuts to capital, corporate and income taxes under the Liberal and Conservative governments of the last 15 years.

In the last year for which calculations were available, Ontario had forgone $15 billion in revenues due to these tax cuts.

Under pressure from the New Democratic Party, Finance Minister Dwight Duncan said yesterday that he is considering delaying further corporate tax cuts.

Drummond report to cut deeper and last longer than Harris reforms of 1990s | rabble.ca


Just watching over an interview with Drummond here, he admits that we decided to be competitive on taxation with the U.S. and other international markets, but we didn't lower spending (obviously) to match the effect of those lowered revenues.

I agree with Drummond that healthcare efficiencies and lower healthcare spending is needed, but the province desperately needs tax revenue and it's about time we stop giving corporate handouts that aren't helping the economy.

On the point of this aversion to tax revenue, just by simple comparison - the mayor of Mississauga (a Conservative mayor) recently raised property tax by 7.4% without any real scrutiny from council in order to help with that city's shortfall.

People need to get over this fear of taxation so that we can reasonably balance revenues with expenses.
 
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IdRatherBeSkiing

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People need to get over this fear of taxation so that we can reasonably balance revenues with expenses.

Taxation on a personal level is already quite high. The idea that we the govt just grabs our money from our pockets to pay for reckless spending by his govt is maddening. But given we are probably 3-4 years from an election year MsQuinty may try it. That is what Lieberals do.
 

mentalfloss

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Taxation on a personal level is already quite high. The idea that we the govt just grabs our money from our pockets to pay for reckless spending by his govt is maddening. But given we are probably 3-4 years from an election year MsQuinty may try it. That is what Lieberals do.

Clumsy rhetoric aside, I would agree that personal taxes may not be required, but corporate taxes have to go up.
 

WLDB

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More proof that anything any government touches most often turns to crap. The Drummond report shows that Premier McGuillicitty is an awful manager of money and policy.
Terence Corcoran on the Drummond report | FP Comment | Financial Post


The PC's would have done no better. Like every government including the federal Conservatives they started spending like crazy when the recession hit. McGuinty also did have several balanced budgets before the recession, if not for it there may still be a balanced budget.
 

IdRatherBeSkiing

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The PC's would have done no better. Like every government including the federal Conservatives they started spending like crazy when the recession hit. McGuinty also did have several balanced budgets before the recession, if not for it there may still be a balanced budget.

I don't believe MsQuinty has ever balanced the budget. First there was the excuse it was all previous governments fault, then his spending. He will probably still try to blame the mess on the previous govt.
 

mentalfloss

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You posted "several" budgets. Got a link for that?

Well from his link it says:

Ontario's finalized 2005-06 public accounts, released yesterday by Mr. Sorbara, shows the province ended the year with a surprising $298-million surplus, enabling the McGuinty Liberals to beat their stated goal of getting rid of deficits by 2008-09 at the latest.

I'm not sure how you'd like to take that, but it looks like a balanced budget unless there is something else we should know about with respect to the fiscal situation at that time.
 

DurkaDurka

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lone wolf

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So if it was balanced in 2008, this means he as completely ****ed the province up in only 3 years. Amazing.
I'd be more inclined to say the guy who led us into a nuclear power project at Darlington (8 reactors scaled back to 4 and still $10 billion over budget) and the guy who sold off Ontario Hydro to the for profit sector - forever crippling heavy (read: high-paying) industry did more to damage the province than the guy who inherited the mess.

BTW ... I'm not Liberal - just a realist
 

Goober

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Drummond said one-third of the deficit was due to the recession.

So a decrease in revenues, and support for big auto is OK when it is a Liberal Govt but reckless beyond belief when it was a Conservative Govt.

Signed
Confused
 

mentalfloss

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So a decrease in revenues, and support for big auto is OK when it is a Liberal Govt but reckless beyond belief when it was a Conservative Govt.

Signed
Confused

Mr. Confused,

It is much better if you stop thinking in black and white.

If the Liberals aren't responsible for 1/3rd of the deficit, then ... they're at least responsible for 2/3rds. Also, no one mentioned the Conservative government, but I'm sure there are plenty of threads to discuss their fiscal failures as well.

Signed,

Drummond
 

Goober

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Mr. Confused,

It is much better if you stop thinking in black and white.

If the Liberals aren't responsible for 1/3rd of the deficit, then ... they're at least responsible for 2/3rds.

Signed,

Mr. Gray

Dear Mr. Gray
Then this would also apply to Harper, would it not?

Signed
Still Confused