Liberals introduce budget 2.0

With a majority it’s expected to pass

The deficit is still $12.5 billion and the Liberals still stand behind an Ontario pension plan.

The finance minister tabled a budget that looks a lot like the one they put forward on May 1st, which ultimately triggered an election in the province.

Finance Minister Charles Sousa didn't change any spending increases in healthcare and education, despite warnings from critics and credit agencies that Ontario’s rating could change, meaning more interest paid one debt. He maintains he won't get rid of any public sector jobs or make huge service cuts to pay down the deficit by 2017-18.

It’s expected that after this year, there will be vast changes to provincial spending to balance Ontario’s books.

Now that the budget is likely to pass with a majority government in place, you can count on your wallet getting hit.

There is still a plan in place for an Ontario-based pension plan that would be put in place by 2017. The details remain the same: Someone making $45,000 a year would be contributing $788 a year. If you make $70,000, you'll contribute $1,263 annually. Those who bring in $90,000 a year will contribute $1,642. It will be mandatory for those who don't have a comparable workplace pension plan, with maximum contributions of 1.9 per cent.

Personal income taxes will go up for those making $150,000 and more a year – which will affect two per cent of all those who file taxes.  Those making up to $220,000 would pay $425 more a year. If you make over $220,000, you will pay $5,500 more.

The budget outlines in greater detail a phased in aviation fuel tax which would act as a transit funding tool, which would see a one cent a litre increase each year, for four years starting on September 1st.  It would affect the price of plane tickets.

There is no major change to their transit funding tool proposal as a whole, which includes: the aviation fuel tax, restricting large corporations from claiming the small business deduction and restricting the fuel-tax exemption for road-building machines. This is on top of previously announced initiatives like: future High Occupancy Toll (HOT) lane revenue, green bonds, the trillium infrastructure fund, 7.5 cents of the existing gas tax and using the HST made on gas and diesel fuel.

There have been some tweaks to legislation to include an MPP wage freeze in the budget.
Interim Tory Leader Jim Wilson says they won't be supporting what he calls a political budget. He says the people of Ontario didn't vote for the Liberals’ plan but instead voted against his party. He points to the “mistake” to propose 100,000 public sector job cuts during the campaign.

NDP leader Andrea Horwath says she also won't vote for the budget, underlining it’s not progressive.

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  1. Ernie posted on 07/14/2014 04:46 PM
    Re: Aviation Fuel Tax

    I am willing to bet that this tax will have minimal impact to raise funds but will have a significant impact on airfares..

    How difficult do you think it is for Air Canada or Wet Jet to charge an aviation fuel tax, yet purchase more of their fuel in the USA and less in Canada anyway?

    I foresee bigger profits for the airlines. Higher costs for consumer.. and little revenue for the government to build transit.
    1. Dean posted on 07/14/2014 04:54 PM
      @Ernie that's bs. i'm going to walk everywhere and i will tell the lieberals to make up the difference.
    2. HP posted on 07/14/2014 04:58 PM
      @Ernie I fly from Buffalo whenever possible, it's a lot cheaper to drive and park down there. My second option is to fly Porter to New York and catch international flights for a lot less than from Toronto. I only fly from YYZ when I go to Cuba for my all inclusive breaks a couple of times each year. A friend books 10 weeks in Cuba each winter, a snowbird that saves about 50% over going to Florida and doesn't have to cook or clean house. Just sits, eats, and drinks all winter for pennies...but hates taking those 20 flights.
    3. arthur posted on 07/15/2014 10:08 AM
      @HP hmm.. ?10 times to Cuba back and forth
      does he take down suitcases of chocolate bars, soaps and cheap jewelry you know for a little bartering.
      i've been there but have no reason to go back and forth 10 times unless..
    4. john posted on 07/15/2014 11:40 AM
      @arthur u know the deference between a liberal and human . liberals steal form the poor and give to the rich . humans on the other hand steal form the rich and give to the poor who need it more then the rich .
  2. john posted on 07/15/2014 12:01 PM
    ladies and gentlemen

    let the big spending
    high taxes
    high utilizes
    high insurance rates
    high water bills
    high company taxes
    high unemployment
    2 a credit rating downgrade
    the highest amount of homeless in all of Canadian history EVER

    and a big load of bullshit that would fill up the grand canyon 10,000 times over begin
    1. Sonny posted on 07/15/2014 12:39 PM
      @john The Libs introduced essentially the same propsed budget as May 1. This time it will pass!
      Taxes are up on the wealthiest 2% who can pay and will be on budget because Moody's is a U$ rating agency who can't even recognize the problems under the right wing W. Bush
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