I guess it's a bad thing that Hudak won the election, because he is merely following through on the Common Sense Platform Part II upon which his campaign was based.
A situation like this could really force the LIberals to pick one side to lean on, left or right, to keep the government afloat. One single misstep and it's a 2012 election.
Yes indeed, amazingly ungrateful, considering that social spending benefits children just as much as, if not more than, adults. But I'm guessing your kids weren't told that part, right? That education and day care actually cost something, as does health care?
Gee, why can't all social and economic policy be decided by asking over-simplified, right-wing, biased questions of little kids?
Edited to add: I didn't misunderstand your post, did I, Uncle John? Were you maybe being sarcastic? If so, sorry for not catching it...
Yes indeed, amazingly ungrateful, considering that social spending benefits children just as much as, if not more than, adults. But I'm guessing your kids weren't told that part, right? That education and day care actually cost something, as does health care?
Gee, why can't all social and economic policy be decided by asking over-simplified, right-wing, biased questions of little kids?
Edited to add: I didn't misunderstand your post, did I, Uncle John? Were you maybe being sarcastic? If so, sorry for not catching it...
I'm with Michelle and most socialists on the matter. Health care and education costs what it costs and should not, and can not, be run like a business or be thrown to "market forces" wolves. Wolves tend to leave nothing behind after theyre done feasting.
However, I said most socialists. In the USA, for example, there is private sector delivery of health services to the greater extent than most other developed countries. And they, too, know and understand that health care costs what it costs, and I think the privateers tend to push this idea to extremes. Private enterprisers and I imagine hospital boards might not be all that efficient when it comes to paying themselves or cutting corners when they have a blank cheque signed by taxpayers. So I think it's possible that there are two types of "it costs what it costs." They spend a lot more on health care in the US than any other developed country and yet have the crappiest national health statistics. I think a lot of money is wasted on health care fraud in addition to the duplication of health care admin.
Surely I am responsible for paying for the education and daycare of my children, as my parents were responsible for me (whether as an individual or part of a community). If I/we have to borrow money to do that, I/we should be responsible for paying it back. Eventually they might have their own children to support, which would be made more difficult were they to have my/our debts to pay.
The NDP has a good track record of being fiscally responsible. Why don't we focus on that, instead of imitating fiscally irresponsible Conservative policy? Loading debt on future generations without their consent is morally bankrupt.
Ah, okay, I see where you're coming from. My sarcasm was perhaps unjustified. :)
So you're thinking we run balanced budgets, and the community pays for what needs paying for as we spend it, right? But by "community" I'm assuming you mean society as a whole, including corporations, which, as the price for operating in our midst and selling their goods and services to us, must pay taxes for the betterment of our society (not to mention so that they don't get an educated and healthy workforce for free), so that we don't leave debt to the next generation to pay.
I don't see why a country like this cannot afford to pay for all the services it wants through general revenues. The problem is that people do not want to pay. Recently they asked people about medicare, and the respondents were all really concerned about it. However no one asked, "If we needed a tax increase to maintain medicare in this country according to the principles of the Canada Health Act, would you be willing to pay your share?"
TWO provincial elections ago, Ontario premier McGuinty put in a really regressive health care levy, which really stings you if you are on minimum wage. Been there. Yet McGuinty got re-elected twice. So I think if you were to say, "look, we need more taxes for health care", I think most would go for it, especially if it was way less regressive than McGuinty's scheme...
I don't see why a country like this cannot afford to pay for all the services it wants through general revenues. The problem is that people do not want to pay.
I think it's that Ottawa simply chooses not to raise overall taxes in order to pay for them. This is what neoliberalism looks like in a country still using an obsolete and uncompetitive electoral system. Our corrupt stooges in Ottawa with about 24% of eligible voter support under them don't have to do what the large majority of Canadians want them to. Ottawa's overall program spending is billions less than it is for the rest of Canada. It's a top-down system that pits smaller provincial economies against larger ones typically governed by Liberal and Tory governments setting the pace for everything from provincial corporate tax rates to minimum wage.
"It is evident that for middle and low households the tax cut agenda is actually associated with a reduction in the standard of living and we are seeing an ever widening gap between the ‘haves' and ‘have nots' in Canada. Investing in social determinants of health will take tax money. The Nordic countries have demonstrated this."
Premier of Canada's largest province feigning impotence, too. Someone should tell Dalton Pinocchio that it's not a real medical condition.
"It is evident that for middle and low households the tax cut agenda is actually associated with a reduction in the standard of living and we are seeing an ever widening gap between the ‘haves' and ‘have nots' in Canada. Investing in social determinants of health will take tax money. The Nordic countries have demonstrated this."
Premier of Canada's largest province feigning impotence, too. Someone should tell Dalton Pinocchio that it's not a real medical condition.
The article starts with:
Quote:
Two prominent Canadian economists have told the Commission on Quality Public Services and Tax Fairness that the provincial treasury is forfeiting billions of dollars in tax revenue by failing to adopt policies that could be used to fund sustainable public services.
but it doesn't say what the policies are. Anyone know?
but it doesn't say what the policies are. Anyone know?
Nordic country policies and basically the opposite of everything Pinocchio McGuilty has done or not done since 2003.
Ontario's Liberal Government have been Herbert Hooverians on taxes - they've refused to tax those most able to pay them and raised taxes and user fees for those least able to pay.
Surely I am responsible for paying for the education and daycare of my children, as my parents were responsible for me (whether as an individual or part of a community). If I/we have to borrow money to do that, I/we should be responsible for paying it back. Eventually they might have their own children to support, which would be made more difficult were they to have my/our debts to pay.
The NDP has a good track record of being fiscally responsible. Why don't we focus on that, instead of imitating fiscally irresponsible Conservative policy? Loading debt on future generations without their consent is morally bankrupt.
I believe that short of severe economic downturns and severe national emergencies, for example a natural disaster, that the left should actually embrace balanced budgets. Why?
but it doesn't say what the policies are. Anyone know?
Nordic country policies and basically the opposite of everything Pinocchio McGuilty has done or not done since 2003.
Ontario's Liberal Government have been Herbert Hooverians on taxes - they've refused to tax those most able to pay them and raised taxes and user fees for those least able to pay.
So "adopt policies that could be used to fund sustainable public services" is bafflegab for "raise taxes"? Who knew?
So "adopt policies that could be used to fund sustainable public services" is bafflegab for "raise taxes"? Who knew?
Canada's overall tax revs as a percentage of GDP are below the OECD average.
And never mind the EU15 avg.
And never mind still the Nordic country avg.
Still think Canadians are over-taxed? Pull the other one - it's got bells on.
I agree that if you take, say, Sweden as a reference point, there's lots of room to raise the top marginal income tax rate on employment income (by 10% or so) and the GST (again by 10% or so) for Canada to be comparable. The Swedes pay a lot more consumption and income taxes on labour than we do. On the other hand, they only pay 30% income tax on investment income, and that only at the Federal level, so Canadians actually pay more on that piece. See:
However, my point was that testimony to the Commission (which is really just the Public Services Foundation of Canada dressed up) used such a careful euphemism rather than just saying "raise taxes".
I don't see a lot of Canadians pointing at themselves and saying "raise taxes on me", but I wouldn't be surprised to see Canadians pointing at other Canadians and saying "raise taxes on him". It's how it usually goes.
Compare tiny Sweden's economy with Canada's. Canada is, as the American military once said about it, a northern icebox of natural resource wealth to be raided at corporate America's convenience. We are exporting massive, simply massive amounts of oil and natural gas and hydroelectric power to the northern states.
We would not have to lower corporate taxes or taxes on natural resource exports if there wasn't this race to the bottom mentality engrained in Ottawa. And it's been a case that none of the larger, more influential provincial economies are willing to challenge capital at the same time, like Dalton Hoover's government in Toronto spending us into a bottomless hole in setting us up for austerity in the process.
In Ontario the Liberals are basically copying taxation models of the 30 some-odd bankrupt US states in refusing to tax the wealthy and profitable corporations. That was Herbert Hoover's approach to taxation during the depression era, and that gov't actually did raise taxes while claiming to be practicing Keynesianism. It wasn't true, though.
Canada has much more room for raising overall taxes than tiny Nordic country economies do. Their corporations raided resource wealth long ago and left them with little room for taxing timber and mineral and profits that were looted from their countries by marauding capital long ago. Today they have the most efficient taxation models in the world. It doesn't mean we have to follow them to a tee on the consumption side, although that is one more possibility among several. Bags of room on taxation in Ontario and the rest of Canada. We should not have to be gutting public services Herbert Hoover style. We've lost somewhere more than $6 billion in wages from circulating in Ontario's economy since the loss of so many full-time, unionized manufacturing and related sector jobs since 2003 in order to prop-up a higher dollar and the fossil fuel industry in the prairies. Smaller government and pulling even more money out of Ontario's economy is not going to raise our standard of living or contribute to a more competitive economy Nordic style. The results are in - and more generous social spending is now thought to contribute to economic competitiveness not subtract from. There is a valid alternative to Margaret Thatcher's TINA.
@ Fidel: so which taxes would you raise? HST in Ontario to 25%? (I can't see that being a vote-getter.) Top marginal rate increase? (Brian Topp is floating this right now.) Or would you raise corporate taxes only and leave HST and personal income tax alone? If you follow the Sweden link I posted you'll see that Swedish and Canadian corporate taxes are actually pretty close (once you count provincial tax in Ontario) - they're both around 25% right now.
I would support removing HST from necessities and leaving unrestricted ITC's alone. If I was looking for votes in the conservative bastion of Ontario among voters still voting and during what is sure to be neoliberal economic meltdown part III or IV or whatever in the next year or two, I would support what the ONDP is promising to, which is to spend more in health care and public services while costing less than the other two parties' platforms overall.
Federally, I think the NDP could raise overall tax revs in general and replace what was removed from social transfers since 1995. I think that would be a good place to start for our first NDP government in Ottawa.
that Ontario spending has increased by 66% since 2002-2003, faster than can be accounted for by a combination of inflation (running around 2.5% over the period) and population growth. So assuming counterfactually that Ontario has a revenue problem, not a spending problem, what taxes would you raise?
that Ontario spending has increased by 66% since 2002-2003, faster than can be accounted for by a combination of inflation (running around 2.5% over the period) and population growth. So assuming counterfactually that Ontario has a revenue problem, not a spending problem, what taxes would you raise?
They have cut services and raised taxes and user fees since 2003, no question about it. And they plan on freezing spending and reducing the deficit. The Liberals are panicking over the deficit which they themselves created with help from Ottawa no less.
The Liberal Government's problem, ygtbk, is that they have expenditures of around $124 billion and revenues of almost $109 billion. That's an annual budget deficit of about $16 billion. Do you see a problem with this and the fact that they are talking abour further public sector job cuts as well as reduced services?
The ONDP's platform is to increase provincial spending more than they would reduce taxes while, at the same time, costing anywhere from quarter-billion less than the Liberals plan to $2.6B less than the Tories' plan for cradle to grave socialism for profitable corporations and rich people.
Uncle John wrote:
Oh no you can't lower corporate taxes or capital gains taxes any more. Not in Canada. That would be right wing fascism.
That's right, there is no need to lower corporate taxes in Ontario, either. Non-financial corporations in Ontario are awash in cash to the tune of somewhere more than $450 billion. They are sitting on stacks and stacks of cash with no indication that they intend to invest in or create jobs in Ontario. Why would we want to give them even more money? Would it be so they can sit on an even larger pile of cash while the government in Toronto slashes public services and full-time jobs? Did sucking billions of dollars more out of the economy during an economic depression work for Herbert Hoover and Americans in the 1930s?
@ Fidel: I'm not sure if you're unwilling to answer my question or unable to answer my question. You say you want to emulate the Nordic countries to "preserve" Ontario public services (this despite a massive run-up in provincial spending and debt since 2002-2003) but you are unable or unwilling to say which Ontario taxes you'd raise. Surely it can't be that difficult.
"It's as if Premier Dalton McGuint gave economist Don Drummond the province of Ontario tied up in a nice big bow. In a careers brimming with plum positions, Drummond calls this one his 'dream job': McGuinty put him in charge of a commission on the public service with the power to effect all our lives in Ontario...
His nickname is Premier Drummond, but Darth [Vader] Drummond might soon fit the bill - His report -already in the premier's office waiting for Drummond's final sign off in a few days - goes far beyond expected cuts and covers sweeping recommendations that would consolidate ministeries, overhaul others and change the health care system as we know it...
'I was always very clear at TD [Senior VP and Chief Economist] about what I was trying to do and what they expected of me,' he continues. 'Here was the cost of my group and I knew that if you wanted to survive, I had to make more money for the bank than was the cost of my group...There wasn't a bit of ambiguity about my value to the bank.'
And he wants to bring that discipline to how the province does its business. After full evaluation of each program,
@ Fidel: I'm not sure if you're unwilling to answer my question or unable to answer my question. You say you want to emulate the Nordic countries to "preserve" Ontario public services (this despite a massive run-up in provincial spending and debt since 2002-2003) but you are unable or unwilling to say which Ontario taxes you'd raise. Surely it can't be that difficult.
Fyi, Ontario is not a Nordic country with federal powers for taxation and spending. It's a northern province living beyond its means within a federal fiscal straightjacket and in debt to the tune of more than $250 billion.
@ Fidel: I'm not sure if you're unwilling to answer my question or unable to answer my question. You say you want to emulate the Nordic countries to "preserve" Ontario public services (this despite a massive run-up in provincial spending and debt since 2002-2003) but you are unable or unwilling to say which Ontario taxes you'd raise. Surely it can't be that difficult.
Fyi, Ontario is not a Nordic country with federal powers for taxation and spending. It's a northern province living beyond its means within a federal fiscal straightjacket and in debt to the tune of more than $250 billion.
I agree that Ontario is a province and not a country. Having said that, how are your comments in posts #11 and #13 in this thread to be interpreted?
I agree that Ontario is a province and not a country. Having said that, how are your comments in posts #11 and #13 in this thread to be interpreted?
The NDP's plan would have boosted stimulus to increase Ontario's GDP by a greater amount than overal platforms(taxing and spending) of either the Liberal or Conservative parties. If you want to compare Nordic countries at the federal level with provincial level NDP, then that's where the ONDP looks more Nordic than either of the two more conservative parties in Toronto. It is a fact that corporate and personal tax cuts deliver less bang for buck than does direct public spending. Yes, the multiplier effect would be lower in Ontario because it's a smaller economy than national level but spending effects would be similar.
The only way we could truly emulate Nordic countries with their plowing a whopping third of GDP back into social spending is with political will in Ottawa. The Nordics make our laissez-faire do-nothings in Ottawa appear to be anywhere from invisible to non-existent. You can't exclude federal government policies when comparing Nordic countries to the rest of the world. But on the provincial end of things, we don't have to cut public services or shovel money to rich people and corporations while sliding further into debt, either.
Corporate tax cuts alone are not linked with spurring economic growth. I think someone and maybe two posters above may have implied, or perhaps would like to suggest, that corporate tax cuts and low personal marginal rates alone are what make Nordic countries economically competitive. That's not true because there are some really piss-poor thirdworld capitalist countries where corporate and personal taxes are very low, and they are not listed in the top ten or top 20 most competitive economies in the world.
@ Fidel: I think most people would agree with you that low marginal tax rates alone are not enough to ensure prosperity. But unless I'm mistaken no-one in the thread so far has made that assertion. So I'm thinking that your current point is that Ontario cannot on its own improve economic growth, and that that will have to wait for a Federal NDP government. Is that more or less your point, or have I misunderstood it?
I think provincial governments are able to tweak taxes here and there, ensure delivery of programs, legislate and regulate below the NAFTA radar etc. But they have no control over the national economy, or national taxation and spending. In that sense the Nordic countries are like one big union setting corporate tax levels and committing to social spending on national levels. We don't have that here. What we have in Canada is top-down neoliberal ideology resulting in race to the bottom mentality.
Yes, I think what we need is a federal level NDP government with control of federal purse strings in order to create Nordic style social democracy. And I would want to give then several terms in power not so unlike the first CCF governments in Saskatchewn needed to start a province. The challenges are different today.
The issue is always the mountain of debt and mounting deficits. (Municipalities, unlike the province and the feds, are forbidden to run deficits, giving rise to all manner of accounting tricks as well as program cuts.)
The reality is that the issue is the mountain of suffering and deprivation visited upon those who can afford it least. The rich are never told they'll have to pay a private contractor to plow their streets. Rather, the poor are told their community centre must close and their transit fares must rise.
Austerity is a combination of Spartan toughness and puritan rectitude. But notice that the toughness and rectitude are exhibited by those who dispense the pain upon their victims. Tax revenues may be falling, but corporations must be given tax cuts and faster depreciation allowances. Some libraries may close, but management consultants are retained at thousands of dollars per hour to collate information readily available at city hall.
A Torontonian on selective pain otherwise known as 'austerity.'
Given how Ontario spending has ramped up during his tenure as Premier, this is quite the stunning revelation.
Ontario's spending increases have covered the Bank of Canada's inflation targets of 2% but not population growth. It's like wearing a jock strap your mother bought you when you were twelve and never buying a new one to accommodate for "expansion." Ontario has seen a greater net exodus of young people to other provinces than any other since the neoliberal Harris-Pinocchio regimes in Toronto.
Ontario's spending increases have covered the Bank of Canada's inflation targets of 2% but not population growth. It's like wearing a jock strap your mother bought you when you were twelve and never buying a new one to accommodate for "expansion."
What a painful metaphor. However, it's incorrect.
If you look at the link I posted at post #23 in this thread, you can see that spending over the period increases from 74,558 to 124,068 (up by more than 66%). Population increases from 12,091 to 13,374 over the period (up by 10.6%). Instead of the 2% inflation you quote, let's assume a more generous 2.5% per year over the 9 year period.
Then if spending had increased with population and inflation, it would currently be at 74,558 * (13,374/12,091) * 1.025^9, which is 102,993. Spending is in fact projected at 124,068. The difference of 21,075 is bigger than the current Ontario deficit.
In other words, if spending increases had been held to growth in population and inflation, Ontario would currently be in surplus.
This is the reality that Dalton will not acknowledge.
You're including deficit payments on debt, which is money not invested in programs spending, infrastructure, or improving the quality of life for Ontarians in general. But still...
I should have said their austerity budgets from here to 2015-16 expand by a bit above 2%. That rate covers the BoC targets but not population growth.
And there is no need to be in the debt situation they are in had they not dropped taxes on the rich and corporations since Harris' time. We went in the hole to the tune of $35 billion then to pay for tax cuts to rich friends of that party. The Liberals have been the same with refusing to tax those most able to pay. McGuinty's speech to the Canadian Club is basically begging them to create some jobs after years and years of corporate welfare donations in the form of tax cuts. They are sitting on piles of cash while the government slides further into debt for the sake of maintaining a conservative nanny state.
And so it arrives, with a big thump - seriously, this thing is over 500 pages long! I've just read the general part of the executive summary so far. The Drummond Report assumes, likely correctly, that real economic growth in Ontario will not exceed 2% per year for the foreseeable future. Growth is constrained by a strong currency, a reduction in labour force growth and the continuing decline in manufacturing as an employer. It was also directed not to consider tax changes so the balance of effort necessary to reduce the province's deficit falls on limiting spending and on fee increases.
So here's the core of the bad news - the report calls for spending increases to be limited to 0.8% per year for the next seven years. More specifically, it recommends increases of 2.5% per year for health care, 1% for education, 1.5% for post-secondary education, 0.5% for social services and everything else the Ontario government does has to be cut by 2.4% per year. So yes, it's pretty ouchy.
Drummond report recommends wage freezes and increased class sizes amid ‘harsh reality’ for Ontario
quote:
Recommendations from the Commission on the Reform of Ontario’s Public Services include:
• Departments should not budget for any wage increases
• a zero wage budget for all public employees
• Wage freeze for doctors
• Give Local Health Integration Networks (LHIN) more responsibility over funding and integration
• Divert patients who do not need acute care in hospitals to family doctors, clinics and nursing homes
• Increase university nursing programs and use nurse practitioners more effectively
• Expand role of pharmacists to permit them to give routine injections, inhalations and immunizations
• Create online system for prescription refills, test results and appointment scheduling
• Link Ontario Drug Benefit program, currently for seniors and social assistance recipients, directly to income
• Cancel full-day kindergarten
• Cap elementary classes from 20 to 23; junior school classes from 24.5 to 26 and secondary school classes from 22 to 24
• Phase out 70% of 13,800 non-teaching staff by 2017-18
• Charge students for school transportation costs
• Encourage secondary schools with low attendance to expand to a Grade 7-12 model
• Consider raising the retirement age for teachers. Currently, the average teacher retires at 59 after 26 years of service and collects a pension for 30 years
• Encourage colleges and universities to specialize so they’re not all offering the same type of programs
• Keep current tuition annual increases to a maximum of 5%
• Negotiate with federal government to designate inmates serving more than six months to penitentiaries. Currently, inmates must be sentenced to two years or more to be a federal responsibility.....
Two excerpts from an article by Tanya Talaga in the Toronto Star about the Drummond Report:
PUBLIC HEALTH. The 36 public health agencies should be folded into the LHINs, the report says. Public health should also be the sole responsibility of the provincial government. The current requirement that 25 per cent of the agencies receive funding from cities should be reviewed. More money should be put in preventative health measures, it added. Drummond points out only 25 per cent of the population's health outcomes are attributed to the health system. Yet only three-quarters of environmental factors that account for health outcomes such as education and income barely register in the health-care debate.
(Finally, someone in the popular press is saying out loud what we have known for some time: societal health and well-being are closely associated with income.)
MENTAL HEALTH. For too long, mental health and addiction costs have drained the system without being adequately addressed. Mental health costs are estimated at $39 billion annually and the ripple effects are felt in the justice, education and social services sectors. Care is currently delivered through 10 ministries, 440 children's agencies, 330 community mental health agencies and 150 substance abuse centres, the commission noted. There isn't one body to coordinate care and that has to change, Drummond said.
(Yes, but this shouldn't lead to an additional level of administration with no additional care.)
I highlighted what I found interesting and added comment in parentheses. Here's a link to the article:
Drummond Commission's mandate did not permit tax increases.
Thousands of Ontarians will likely sleep fitfully tonight, knowing their fate is in the hands of Don Drummond. Others will sleep like babies, knowing the powerful ex-banker can do them no harm.
Drummond's long-awaited report, unveiled February 15 at Queen's Park, lays out a deficit-shrinking program of austerity that is expected to have harsh implications for public employees — from hospital cleaners to day care workers — as well as delivering service cuts with devastating impacts on the poor, the sick, women in shelters and the disabled.
But if Don Drummond looms large in the nightmares of some of Ontario's most vulnerable citizens, he presents a friendly banker's face to the affluent, who are to be spared paying any additional taxes as their contribution to the province's deficit fight....
Ontario health care delivery changes include assembly-line style private clinics
Under-funded public hospitals to suffer more cuts.
TORONTO, ON, February 13, 2012: Tough talk by Ontario's health minister on salary increases for the province's 25,000 physicians and the creation of new private, assembly-line procedure and surgery clinics should be viewed with a "grain of salt and a lot of questions about the motives behind these clinics, who stands to benefit and the potential risks to the health of Ontarians," says Michael Hurley, the president of the Ontario Council of Hospital Unions (OCHU).
Racing to come out ahead of the February 15 release of a report reviewing public services' cost-cutting, the health minister recently announced health service delivery changes that could include private birthing, knee and hip surgery and medical procedures clinics.
The cost-cutting and massive redesign of health services is coming even though over the last decade, health care spending has shrunk as a percentage of total program spending, down from 46 percent to 42 percent, while Ontario's population increased. In the same period, payments to physicians have increased by 88 percent and drug costs doubled in the last 20 years.....
"To meet its own goal of a balanced budget in seven years, the government will have to cut program spending more deeply on a real capita basis, and over a much longer period of time, than the Harris government did in the 1990s,' Drummond wrote on page 10 of his executive summary.."
Banker Occupied [Canada] Europe and America - by Stephen Lendman
"Money power rules. Across [Canada], Europe and America, governments follow banker diktats. They demand economies and people suffer to assure they're paid.."
The entire austerity crisis agenda is being shoved down our throats all for one reason: to avoid an increase in the progressive personal income tax.
The Drummond Report was predicated on the assumption that there would be no tax increases. Its draconian prescriptions for gutting government social and support programs and reducing the living standards of public servants are proposed as an alternative to tax increases.
The truth is that there is no crisis, there is no necessity of any of the Drummageddon austerity measures, because the entire fiscal health of Ontario could be assured by implementing tax increases that would hit the rich hardest. Instead, the McGuilty government proposes to make the working class pay for the tax cuts, bailouts, subsidies, and record profits enjoyed by the 1% as the income gap grows ever wider.
We've been cutting corporate and income taxes for fifteen years and now we're surprised that the cupboard is bare and we need to pay a guy 1500$ a day to tell us that? Give me a break. McGuinty's going to have a caucus revolt on his hands if he goes forward with this - we all know that Liberals don't run as candidates to deliver any sort of bad news to anyone.
I think my posts at #23 and #37 are relevant here. Dalton McGuinty has been an incredibly poor fiscal manager. If he had increased spending in line with population and inflation (hardly the definition of draconian cuts) Ontario would not be in deficit today. This problem is entirely self-inflicted by the Liberal government, and they're going to try to use the Drummond report as a reason to cut, rather than say "you know, we're completely incompetent, and here's the problem that we caused..."
The federal government has cut back GST from 7% to 5% since 2006, so HST (let's just pretend it's been in place in Ontario the whole time, which is not quite true) has reduced from 15% to 13%. The Harper cuts in GST were widely criticized as regressive at the time. Maybe Dalton should boldly increase the Ontario portion of HST from 8% to 10%?
..your numbers, i have no reason to doubt, are accurate. this makes mcguinty competent because he is serving the interest of capital. the problem of rampaging capital, as seen to be going everywhere, cannot be solved by producing logical finances by political force that matches the attack which then creates the space for change. so organize and resist is what i suggest. shut the province down before this goes any further.
..sorry deb, i didn't mean to take this lightly. i really don't see an alternative other than accepting what comes down. we can't negotiate our way out of these austarity measures nor vote our way out.
..sorry deb, i didn't mean to take this lightly. i really don't see an alternative other than accepting what comes down. we can't negotiate our way out of these austarity measures nor vote our way out.
I'm not suggesting that it's a wrong strategy, just that it's difficult to do.
It requires that people shut down the province - ie, most of us go without pay, buy no goods, everybody suffers, so it's hard to motivate people to that with unknowns on the other side, particularly those with kids.
The Harper cuts in GST were widely criticized as regressive at the time.
Only by people who don't know what "regressive" means in the context of taxation. The same people who think McGuilty should increase the provincial sales tax, rather than increasing the progressive income tax rates.
..sorry deb, i didn't mean to take this lightly. i really don't see an alternative other than accepting what comes down. we can't negotiate our way out of these austarity measures nor vote our way out.
I'm not suggesting that it's a wrong strategy, just that it's difficult to do. It requires that people shut down the province - ie, most of us go without pay, buy no goods, everybody suffers, so it's hard to motivate people to that with unknowns on the other side, particularly those with kids. Just sayin ...
..i agree, i was too quick to throw that shutting down the province thing out there. in my mind if the austerity goes to plan both federally and provincially there will be more shrinking of an economy that has already begun to shrink. in turn this will require more unemployment and then even more austerity, more squeezing. surviving this is difficult as well on a whole lot of levels. i just can't see people putting up with it.
The Harper cuts in GST were widely criticized as regressive at the time.
Only by people who don't know what "regressive" means in the context of taxation. The same people who think McGuilty should increase the provincial sales tax, rather than increasing the progressive income tax rates.
Take a look at Table 1 on page 4, for example. Their argument at the time was that cutting GST was regressive because high-income families benefitted more. If their numbers are correct an increase in HST (same base as GST) would hit higher-income families harder than lower income families.
The combined federal-provincial sales tax rate was 15% in Ontario from 1991 to 2005, and it wasn't dogs-and-cats-living-together apocalyptic. We could go back to that level. People would scream at Dalton for breaking an election promise, but he really ought to be used to it by now.
Yes, I'm well aware of the failings of the CCPA on this issue. As you said, "If their numbers are correct an increase in HST (same base as GST) would hit higher-income families harder than lower income families." That's so patently not the case that it proves they were wrong.
The report also recommends "alternative service delivery" ie privatization in some ministries. And it says that bumping rights are an impediment to the most efficient deployment of the civil service. Is Drummond indirectly recommending the gov't take on OPSEU?
Yes, I'm well aware of the failings of the CCPA on this issue. As you said, "If their numbers are correct an increase in HST (same base as GST) would hit higher-income families harder than lower income families." That's so patently not the case that it proves they were wrong.
Are you saying Table 1 on page 4 of the CCPA report linked to above is wrong? If so, do you have proof? Asserting that they're wrong is not the same as proving that they're wrong.
This is not the thread for such a discussion. We have discussed the regressive nature of the GST/HST and consumption taxes in general in many previous threads. I would be happy to discuss this with you in another thread on that topic.
But since I have prolonged the thread drift with this post anyway, I will at least point out that according to Table 1 on Page 4 almost 63% of the benefit of a GST reduction goes to those in the lower two brackets of income shown in the table. The "average" individual benefit is lower because there are so many more people in the lower two brackets than in the higher ones. Wealthy families receive a higher average benefit in straight dollar terms, but what the table doesn't reveal is how the average dollar-value benefits translate into percentage of family income. For example, a benefit of $129 to a family living on $25,000 a year is a higher percentage of income than a benefit of $500 to a family living on $100,000 a year. That's because the GST takes a proportionately bigger bite out of low income families than out of high-income ones - the very definition of regressive taxation.
This is not the thread for such a discussion. We have discussed the regressive nature of the GST/HST and consumption taxes in general in many previous threads.
Apparently Jim Stanford (considered by many to be a progressive economist) didn't get the memo, since in the link above he argued that cutting GST (a la Harper) was regressive. Pity. Perhaps he knows that basic items like groceries are exempt, and is aware of the following programs?
And your example is not very convincing: 129 / 25000 is so close to 500 / 100000 that no-one would notice the difference.
I also disagree entirely with your relevance assessment. The current Ontario deficit is about $16 billion per year. If we could cut that by say $5 billion per year (a rough estimate - is there an economist in the house?) by taking one single step, then we've reduced the austerity problem considerably, wouldn't you say?
The deficit is caused by corporate tax cuts and subsidies for the rich.
Raising consumption taxes makes the workers pay disproportionately to their income and disproportionately to their responsibility for the economic mess that capitalism now finds itself in (namely zero).
The deficit is caused by corporate tax cuts and subsidies for the rich.
True
M. Spector wrote:
Raising consumption taxes makes the workers pay disproportionately to their income and disproportionately to their responsibility for the economic mess that capitalism now finds itself in (namely zero).
In Canada I would think this is true of consumption taxes. The neoliberal ideology here says that cutting taxes in general will enhance business activities and job creationm, even though there is no proof of that. Their HST does little to improve the situation for manufacturing in Ontario. Big business leaders in Canada are all for raising consumption taxes when the feds say they need money to fund program spending, just so long as corporate taxes and taxes for high income earners remain low. NIMBY is their attitude on taxes.
Nordic countries, otoh, have made good use of consumption taxes while maintaining low corporate taxes and low tax rates on capital in general. Social democrat governments in Sweden and Denmark have been committed to fully funding social spending through consumption taxes and at higher rates than here.
As a rational response to the suggestion that we consider whether Ontario might return to its 2005 level of combined PST/GST (=HST), this strikes me as just a tad over the top.
If the choice is between raising consumption taxes or cutting public services, then progressives obviously should prefer higher consumption taxes. However, I do not think that increasing the GST ought to be our top priority.
As Michael Bliss notes in today's Globe, "the GST, being a consumption tax, is fairly regressive." Of course, an enhanced GST credit could compensate the poor. But a higher GST would be rather ineffective at redistributing money from wealthy Canadians and foreign shareholders.
In Weir's opinion the issue of raising taxes should not be limited to consumption taxes. We should be looking at more progressive options, like raising income taxes for the wealthy and profitable corporations.
As a rational response to the suggestion that we consider whether Ontario might return to its 2005 level of combined PST/GST (=HST), this strikes me as just a tad over the top.
Not over the top at all. It's a perfectly rational and reasonable reaction to anybody who comes here and touts austerity measures designed to make the workers pay for the financial crisis caused by the greed of their bosses.
As a rational response to the suggestion that we consider whether Ontario might return to its 2005 level of combined PST/GST (=HST), this strikes me as just a tad over the top.
Not over the top at all. It's a perfectly rational and reasonable reaction to anybody who comes here and touts austerity measures designed to make the workers pay for the financial crisis caused by the greed of their bosses.
Please consider posts #23 and #37. Ontario has specific problems that could have been averted if the McGuinty Liberals had had a clue about what they were doing. It's not a virtuous workers vs. greedy bosses problem - otherwise, you'd expect to see all the provinces with the same level of deficit as Ontario - it's a fiscal mismanagement problem. In particular, spending expanded too fast - if it had grown in line with population and inflation we'd have no problem to discuss here, because Ontario would be in surplus.
So, given that we don't have a time machine to send a very serious letter from 2012 Dalton back to 2003 Dalton, what should we do? I think returning to the status quo ante of 2005 on sales tax is a reasonable suggestion: more reasonable than believing that we're going to close the whole gap purely through spending restraint over multiple terms of government.
If the choice is between raising consumption taxes or cutting public services, then progressives obviously should prefer higher consumption taxes. However, I do not think that increasing the GST ought to be our top priority.
As Michael Bliss notes in today's Globe, "the GST, being a consumption tax, is fairly regressive." Of course, an enhanced GST credit could compensate the poor. But a higher GST would be rather ineffective at redistributing money from wealthy Canadians and foreign shareholders.
In Weir's opinion the issue of raising taxes should not be limited to consumption taxes. We should be looking at more progressive options, like raising income taxes for the wealthy and profitable corporations.
Certainly Weir's opinion is also the Brian Topp / Nathan Cullen federal position (probably other candidates as well):
In contrast to the understanding that the general public has of taxes, this discussion of HST is very nuanced.
I suggest that regardless of whether HST is progressive or regressive, most people hear proposals to decrease HST as confirmation of the conservative premise that, in general, lower taxes are better taxes and that "there is no such thing as a good tax."
The problem is with so-called progressives who think there is no such thing as a bad tax.
ygtbk wrote:
I think returning to the status quo ante of 2005 on sales tax is a reasonable suggestion: more reasonable than believing that we're going to close the whole gap purely through spending restraint over multiple terms of government.
Of course those are not the only two alternatives. The whole gap can be closed by raising the progressive income tax and making the rich pay.
You may not like that idea, however, given your apparent indifference to the prospect of families with $25,000 annual income paying the same rate of tax as families with $100,000 income, thanks to regressive consumption taxes like the GST.
The problem is with so-called progressives who think there is no such thing as a bad tax.
ygtbk wrote:
I think returning to the status quo ante of 2005 on sales tax is a reasonable suggestion: more reasonable than believing that we're going to close the whole gap purely through spending restraint over multiple terms of government.
Of course those are not the only two alternatives. The whole gap can be closed by raising the progressive income tax and making the rich pay.
You may not like that idea, however, given your apparent indifference to the prospect of families with $25,000 annual income paying the same rate of tax as families with $100,000 income, thanks to regressive consumption taxes like the GST.
If families with incomes of $25,000 pay the same rate of tax as families with incomes of $100,000, that is by definition proportional, not regressive. A per-capita tax (poll tax) would be regressive. I think you probably knew that. And I notice that when I mention income tax credits for GST/HST and exemptions for basics like groceries you tend to ignore the valid point that I've made. However...
To address your main point, I never said that increasing HST was the only possible action: just that (given that Ontarians were paying 15% combined PST/GST as recently as 2005) it might be a (relatively) painless starting point for fixing Dalton's mess.
But I'm interested: what would the top marginal income tax rate in Ontario have to be to close the $16 billion annual deficit?
If families with incomes of $25,000 pay the same rate of tax as families with incomes of $100,000, that is by definition proportional, not regressive.
And a proportional or flat tax is certainly not progressive. Under a progressive taxation system, the rich pay a higher rate of tax than the poor. That's what "tax brackets" are all about. That's what a fair tax policy means.
Quote:
To address your main point, I never said that increasing HST was the only possible action: just that (given that Ontarians were paying 15% combined PST/GST as recently as 2005) it might be a (relatively) painless starting point for fixing Dalton's mess.
There was nothing "painless" about a 15% PST/GST in 2005. Raising consumption taxes by 2% is precisely the kind of austerity measure that hits the poor harder than the rich.
Quote:
But I'm interested: what would the top marginal income tax rate in Ontario have to be to close the $16 billion annual deficit?
I don't know for sure, and I don't much care, because I certainly wouldn't be paying it. Andrea Horwath says Ontario lost $2 billion in revenue to corporate tax cuts alone. Sid Ryan says restoring the corporate tax rate to 14% "could balance the books without job loss or cuts to services". And Linda McQuaig draws our attention to a study published last fall in The Journal of Economic Perspectives:
McQuaig wrote:
Nobel Prize-winning economist Peter Diamond of MIT and Emmanuel Saez of the University of California (Berkeley) concluded that the optimal top marginal tax rate would be 70 per cent, since it would collect the most revenue without reducing work incentives or increasing tax evasion. (The top marginal rate in Ontario today is 46 per cent - compared to 70 per cent and higher during the Golden Age of Capitalism.)...
An Angus Reid poll commissioned by CUPE found that while Ontarians generally oppose higher taxes, 90 per cent favour higher taxes on those with incomes above $500,000.
"McGuinty, sensing perhaps that the [Drummond report] would be nasty, tried to do the usual preparation for its impact in January, by telling everyone that they would all have to "share the pain" when the austerity regime started. But never has this rhetoric been less true. There is no 'sharing' that will occur. Millions of people will have their lives impacted in ways that will range from the severe, in the case of the poor, to the serious, in the case of much of the middle class. . . . For austerity to have an impact on the lives of the wealthy like it will on the rest of us, taxes would have to be massively increased and laws put in place to remind corporations of their social responsibility to the society that created them and that they could not have existed without."
Laxer castigates the NDP for not exposing McGuinty's narrative for what it is, namely, a cover story for the 1%.
Is there a, "Yes, but . . ." reply to Laxer's criticism?
1) Different people can rationally disagree on what constitutes fair tax policy - the babble threads on "guaranteed basic income" are a case in point.
2) The statement "I don't know for sure, and I don't much care, because I certainly wouldn't be paying it." is not really consistent with your previous statement "The whole gap can be closed by raising the progressive income tax and making the rich pay". I did a back-of-the-envelope calculation to get the top marginal personal income tax rate to close a $16 billion gap and the results implied a mass exodus from Ontario.
3) I agree that there's some room to raise corporate taxes in Ontario, since the rate was 14% as recently as 2010. See:
a) The paper derives a mid-range estimate of 73% optimal top marginal tax rate on labour income (see page 7). However, they do not derive an optimal top marginal rate on capital income (see pages 14-22, which basically argue that previous results in the literature are not relevant) and then come up with the remarkably weak conclusion:
"The bottom line is that uncertain future earnings opportunities argue against zero taxation of capital income, as do savings preference heterogeneity, limited distinctions between capital and labor incomes, and borrowing constraints."
In other words, interest, dividends, and capital gains should be taxed at some rate greater than zero, but they don't know what it is.
b) The paper deals with a single-period model, i.e. people don't have long-range responses to the optimal tax rates (see page 11). As Diamond & Saez acknowledge, a more progressive tax system could reduce incentives to accumulate human capital in the first place (also see page 11). I would add that people might vote with their feet and move to a different jurisdiction with lower tax rates.
But what is fascinating about the report is that the reaction to it has been akin to the reaction to a hurricane or some other unavoidable though unfortunate force of nature. Much of it has accepted its basic premises (even when somewhat critical) and has promoted it as a "bitter pill" that was overdue.
The "progressive" Toronto Star has had the Drummond Report as a link under its own masthead on its website since it came out. Some of its less interesting commentators, such as Martin Cohn, have written nonsensical articles with idiotic narratives about the "chickens coming home to roost" economically, etc. The National Post, Globe and the Toronto Sun, hardly surprisingly, have embraced its recommendations with a glee bordering on the obscene. It is as if they cannot wait to take these programs away from people and to watch life become that much harder for Ontario's citizens.
The report seeks to make constant the false ideas that neo-conservatives used to deconstruct the post-war social compromise, and it seeks to do so as a kind of permanent counter-revolution against the gains of workers and other groups economically that were the dominant ideological hegemony and narrative after the Second World War and until the mid-1980s.
But the report did not fall out of the sky and its defenders are not merely post-modern Chicken Littles. It is the outcome of an ongoing process of ideological re-education within the developed West that seeks to both reverse any traces of economic Social Democracy (in the traditional sense of the term) and that also seeks to make perpetual economic turmoil a constant so as to subsidize the lifestyles of people exactly like Don Drummond and so as to aid in the shareholder-return-driven amoral culture of profit that has destroyed the North American industrial base, wiped out the communities and jobs that existed for so many and that has successfully made even "left" parties sing its tune.
For austerity to have an impact on the lives of the wealthy like it will on the rest of us, taxes would have to be massively increased and laws put in place to remind corporations of their social responsibility to the society that created them and that they could not have existed without.
Instead, not a single party in mainstream "left"-thinking is calling for anything like this at all.
They have completely capitulated to the forward march of the relentless neo-liberal economic logic of tax cuts, service cuts, deregulation, anti-unionism and much more....
As with the Democrats in the U.S. and most of the Socialist and Social Democratic parties in Europe, the Liberals and the NDP have bought into almost every fundamental aspect of the new ideological order and, by doing so, have created and helped to perpetuate the very ideas and philosophies that hinder them in their pursuit not only of power but of actually making a difference and being anything other than a last defence against the "storm."
They have aided in their rhetoric, their platforms and, most importantly in their acceptance of the basic premises of the neo-liberal right, in perpetuating the ideological and social ideas that allowed this report to be taken seriously at all, which it would not have 30 years ago (despite the fact that our economy has supposedly "grown" so much in the meantime).
They have helped in every meaningful way to manufacture the world that created Don Drummond.
I really wish that media pay more attention to the size of Ontario Public Service and whether it is producing value for the money that it spends on wages and if not why not. If Ontario had spent its resources adequately, many problems that we have right now wouldn’t have existed and we wouldn’t have needed to spend as much money now to resolve problems in Ontario.
Most of the cost of services is wages however the Ontario Public Service has not been producing value for the wages that it has been paying. Most of their management do not have training for management and there is also this culture of hiring their friends.
The are supposed to be hiring employees with right skills to deliver services to Ontarians however instead ,a lot of hiring is about who they want to hire and not about what skills needed to provide the right services to the Ontario public. Result of hiring employees for their closeness to management and not for their qualifications is that these employees won’t have the skills to serve the public instead resources of Ontario public is used to provide jobs for the friends of SOMEBODY.
Ontario Public service is full of unqualified employees. If they start hiring qualified employees and replace the unqualified management then they can produce much more than what they are producing presently with the current resources and they wouldn’t need as much resources for what they are producing currently. There have been extensive focus on EHealth and Ornge and how a group of people have misused the public fund in these organizations. Isn’t using public fund to give your friends jobs that they are not qualified for a form of misuse of public fund? If in average the wages and other cost of each employee who is hired this way add up to 130K a year/employee and then multiply that with number of people hired without qualifications then what would this add up to each year, it would be a big chunk of public money each year. I wonder why media is not paying attention to hiring at OPS. There are big stories to bring to the attention of Ontarians.
I think changes are needed but most of current management are not equipped to plan and implement changes. Ontario Pubic Service would need to replace a large number of its management."
I mistrust rich people telling the rest of us to be austere, when everyone knows they don't pay their own way, like former TD bank economists. Some might think this is argument is about the man, and yes, it is. We have good reason to believe people like Drummond are motivated by riches and unfettered transfers of wealth from the poor to the rich - they are bank employees. So when they make suggestions for the rest of us to accept austerity, it is surely to make them and their colleagues wealthy - we have reason to be skeptical.
I mistrust rich people telling the rest of us to be austere, when everyone knows they don't pay their own way.
Amen! Though for your word rich, I would substitute the word richer. For example, I mistrusted working-class stiffs who voted for Mike Harris' Common Sense Revolution, which targetted welfare moms. Those richer folk didn't realize that their own ox was being gored. What's to be done about that, eh?!
I dunno about that crowd Grandpa_Bill - I don't know how to heal what ails them, except perhaps through education. My experience is that some elements of society will discard the weaker members in times of stress, probably because they'll put up less of a fight - like single moms, the disabled, etc. I remember those Harris years and they were awful.
I guess I'd tell the working class guy, that tory means robber. And what they do is, they take from the public purse, don't like to pay taxes and generally represent the interests of the elite, the rich, people who make money with their money, and don't have to work for it. The problem is, an entrenched discussant won't abide my remarks. Teachers will tell you that there are some students that just don't want to learn. So I'd keep my response pithy and not waste time on the foolish. If you have a lot of foolish people going out to the polls, then fill up your car with New Democrats and take them to the polling station to offset the march of the clowns.
My experience is that some elements of society will discard the weaker members in times of stress, probably because they'll put up less of a fight - like single moms, the disabled, etc. I remember those Harris years and they were awful.
I disagree. All you need to do is look at the history of the Ontario Coalition Against Poverty (as just one example) to see that's not the case. Marginalized groups become targets and scapegoats, not because they won't fight back, but because the rich know that, by and large, people outside of those targetted groups won't join that fight in any meaningful way.
My experience is that some elements of society will discard the weaker members in times of stress, probably because they'll put up less of a fight - like single moms, the disabled, etc. I remember those Harris years and they were awful.
I disagree. All you need to do is look at the history of the Ontario Coalition Against Poverty (as just one example) to see that's not the case. Marginalized groups become targets and scapegoats, not because they won't fight back, but because the rich know that, by and large, people outside of those targetted groups won't join that fight in any meaningful way.
Freedom_55, I didn't say they wouldn't fight. I said they put up 'less of a fight'. And their weakness, with or without OCAP, is why they are picked on. So you can add OCAP into the equation but it only muddies the waters. Ultimately even OCAPs presence wasn't enough to stop treating the disabled or single moms as scapegoats.
Regarding the class struggle...I submit that marching around isn't a fight unless it impacts the rich economically, therefore closing a port, in my view, that is called a real 'fight'. Marching is nice, but it's a form of education, and you can't educate people who don't want to learn. Further, you can't learn from someone you don't respect. Therefore, the rich are not going to learn from either single moms, the disabled, or OCAP, because the rich don't respect them.
You can see the roots of this stuff in Germany in the 30's and 40's. I would even extend myself and say, that 'only' people who are perceived as weak are attacked. Look at unions right now - everyone is trying to hold their head above water...why? Because the ruling class, the elite, view unions as weak right now - and the general public does too. That's why you are going to see more of it, unless, and this may play into your point Freedom_55, unless they can get their acts together for a 'general' strike.
To get the rich to respect your case, you just gotta make them fear your power. A general strike, or job actions, or massive numbers of people will all meet that requirement.
Freedom_55, I didn't say they wouldn't fight. I said they put up 'less of a fight'. And their weakness, with or without OCAP, is why they are picked on.
I understood your comment, I just disagreed with it. If someone has fought harder against the austerity regimes of Harris/Eves/McGuinty than First Nations groups, the poor, and disabled, I'm not sure who that would be. And it's not about being 'weak'. It's about being marginalized by the rest of society.
Rabble_Incognito wrote:
Regarding the class struggle...I submit that marching around isn't a fight
And it's not about being 'weak'. It's about being marginalized by the rest of society.
It is about the language most suitable to describe the conflict.
I prefer 'weakness' because it captures feelings of conflict and perhaps despair, in a way that 'marginalization' fails to do, with a 66% savings on syllables.
'Weakness' suggests a disparity of power in a way that marginalization doesn't - weakness is relative to the strong, in this case the economically strong. Weakness also speaks to the predator/prey opportunism of the situation - we know predators kill weaker animals and the rich feeding on the poor is not a new metaphor in class struggle discussions. So it is perhaps a bit more evocative, but not technically incorrect.
Perhaps so as to not quibble, we could agree that tories generally pick 'low lying fruit'?
I mistrust rich people telling the rest of us to be austere, when everyone knows they don't pay their own way, like former TD bank economists.
I'm quoting RI again. His comment didn't focus on who was or wasn't weak or who did or didn't fight. It focused on whom we ought trust.
This is what strikes me: If all of us commenting on this thread (and some other threads that I have been reading) trusted one another, we wouldn't be dealing with each other abusively. So, in my mind, these questions arise: Why don't we trust one another? How and when did this mistrust come about? Who gains from our mistrust? What can we do about it?
As Bay St. profits from Western energy plays, Eastern manufacturing positions have become increasingly untenable, so we're told. As Ontario attempts to hold expenditures to less than 3%, revenues are contracting while health care costs (which account for more than 40% of the budget, and increasing as a percentage) expand by more than double that rate. Basic math dictates that revenues need to increase, or program spending needs to be reduced. So, what are the priorities in terms of program spending? Will Ontario now have to compete with other 'have not' Provinces for revenue transfers, in order to maintain services at current levels? Ontario needs a plan to address this fiscal imbalance.
Ontario needs a plan to address this fiscal imbalance.
Sure. And what is our plan for moving the Province in that direction? Between now and the next provincial election, what's to be done by us to move forward the notion that, as you say, revenues need to increase?
What's your real motive for asking all these questions?
In a column here, Nicholas Kristof had this to say about the (somewhat) sorry state of journalism in USA:
Look, as a journalist, I'm proud of my profession. Yet it's also clear that commercial pressures are driving some news organizations, television in particular, to drop the ball. Instead of covering Congo, it's cheaper and easier to put a Democrat and a Republican in a studio and have them yell at each other.
My real motive: a safer site for injecting progressive comments in discussions.
Why is there any need for abuse in these threads? Beats me!
Maybe it's because what rabble does is the same thing Kristol talks about. Rabble can get all kinds of free content by hosting a forum and having people of different political persuasions "yell at each other".
The progressive comments have to fight to be heard like every other comment. It doesn't get any "safer" on the internet than that, I'm afraid.
Maybe it's because what rabble does is the same thing Kristol talks about. Rabble can get all kinds of free content by hosting a forum and having people of different political persuasions "yell at each other".
The progressive comments have to fight to be heard like every other comment. It doesn't get any "safer" on the internet than that, I'm afraid.
There are people of different political persuasions here? Talk about the narcissism of small differences...
Reaction to Government Health Funding Announcement Today
The McGuinty government announced $222.5 million targeted to its five wait times priority areas today.
Their release states that the $222.5 million announced today will result in 154,000 more procedures, including:
- 9,000 more hip and knee joint replacements
- 25, 850 more cataract surgeries
- 105,200 more MRI exams
- 4,700 cancer surgeries
- 9,000 more cardiac procedures
This is a sizeable increase and will make a difference. We are pleased this funding is going into the public non-profit health system to improve access to care.
2) Wait times cannot be settled without a clear human resources plan and funding to deal with shortages of health professionals, nurses, doctors and others.
3) We are extremely concerned about the price-based competition (competitive bidding) that is being used in the government's wait time strategy. Hospitals that bid under a certain price levels are to get the funding for procedures while hospitals that do not bid under this price levels do not. This competitive bidding removes services from local communities and centralizes them in regional centres. Patients pay by having to travel further for services and the administrative costs of the system increase dramatically. (One of the chief differences in costs between Canadian and US hospitals is that Canadian hospitals have lower administration costs, not having all of the inefficient pricing requirements etc. of the private market. In the UK, administrative costs shot up after this competitive bidding was introduced).
4) Hospitals across the province are cutting services and laying off staff in an attempt to balance their budgets. It would be more possible to get a whole picture of the results of targeting and reducing the scope of services in hospitals if the Accountability Agreements signed between the provincial government and our hospitals were to be made public. So far they are secret.
There are people of different political persuasions here? Talk about the narcissism of small differences...
Did you think my disagreements with you were purely personal?
No, M. Spector - my point was that babble Policy (and the wrath of Mods) pretty much enforce an orthodoxy here. So long as we understand that babble is a walled garden, no problem.
There are people of different political persuasions here? Talk about the narcissism of small differences...
Did you think my disagreements with you were purely personal?
No, M. Spector - my point was that babble Policy (and the wrath of Mods) pretty much enforce an orthodoxy here. So long as we understand that babble is a walled garden, no problem.
A recent column "The trouble with the 99 per cent" by Michael Laxer makes ygtbk's point. Laxer states the theory of the 99 percent slogan as follows
"We are the 99 percent. We are getting kicked out of our homes. We are forced to choose between groceries and rent. We are denied quality medical care. We are suffering from environmental pollution. We are working long hours for little pay and no rights, if we're working at all. We are getting nothing while the other 1 percent is getting everything. We are the 99 percent."
Laxer then lays out was he says is (or ought to be) the party line here inside the garden wall:
"With a variety of small or minor variations, this became the [Occupy Wall Street] movement's primary ideological message.
But the message is largely false. And this matters, especially in the long run.
"There is no question about the grotesque growth of social inequality in the West. That this obvious fact has been ignored and even reinforced by the austerity agendas of all governments, regardless of political stripe, plays into an overall sense of hopelessness and reinforces reductionist and absolutist, totalizing ideologies and political views. The inherent danger when democracy becomes seemingly impotent.
"The trouble, however, lies in understanding that undue corporate power and the rise of a new "Gilded Age" ultra-rich power elite does not mean that all of society, the media, politicians, governments, the courts, etc ... are beholden to this elite. More importantly, nor does it mean that the "99 per cent" share common interests and that they can work together, in any meaningful sense, to rectify the problems as raised.
"It also does not take into account the basically dangerous aspect to a worldview like this, which is both disingenuous and bourgeois in its desire to eclipse real issues of class, management, Social Mandarins, and the true underpinning of inequality with a slogan that appears to embrace "everyone," in the classic American way. By doing so it in fact embraces and lets off the hook many, if not most, of the basic enemies of working-class and socialist or anti-capitalist politics."
As I read it, Laxer's motive in all of this is Purge and Purify.
There are people of different political persuasions here? Talk about the narcissism of small differences...
Did you think my disagreements with you were purely personal?
No, M. Spector - my point was that babble Policy (and the wrath of Mods) pretty much enforce an orthodoxy here. So long as we understand that babble is a walled garden, no problem.
This is an interesting conversation--and amusing, too, as in narcissism of small differences!
In a recent column "The trouble with the 99 per cent," Michael Laxer states the theory of the 99 percent slogan as follows:
"We are the 99 percent. We are getting kicked out of our homes. We are forced to choose between groceries and rent. We are denied quality medical care. We are suffering from environmental pollution. We are working long hours for little pay and no rights, if we're working at all. We are getting nothing while the other 1 percent is getting everything. We are the 99 percent."
Laxer then lays out what he says is (or ought to be) the party line here inside the garden wall about the Occupy Wall Street movement:
"With a variety of small or minor variations, this became the [Occupy Wall Street] movement's primary ideological message.
"But the message is largely false. And this matters, especially in the long run.
"There is no question about the grotesque growth of social inequality in the West. That this obvious fact has been ignored and even reinforced by the austerity agendas of all governments, regardless of political stripe, plays into an overall sense of hopelessness and reinforces reductionist and absolutist, totalizing ideologies and political views. The inherent danger when democracy becomes seemingly impotent.
"The trouble, however, lies in understanding that undue corporate power and the rise of a new "Gilded Age" ultra-rich power elite does not mean that all of society, the media, politicians, governments, the courts, etc ... are beholden to this elite. More importantly, nor does it mean that the "99 per cent" share common interests and that they can work together, in any meaningful sense, to rectify the problems as raised. (emphasis GB)
"It also does not take into account the basically dangerous aspect to a worldview like this, which is both disingenuous and bourgeois in its desire to eclipse real issues of class, management, Social Mandarins, and the true underpinning of inequality with a slogan that appears to embrace "everyone," in the classic American way. By doing so it in fact embraces and lets off the hook many, if not most, of the basic enemies of working-class and socialist or anti-capitalist politics."
As I read it, Laxer's message to us is Purge and Purify. He, for one, thinks there is not quite enough orthodoxy inside the garden.
What Laxer is saying is that the 99% is not a homogeneous, monolithic social stratum, pitted against a tiny minority "enemy". There are reactionary forces within the 99% that help to preserve and carry out the rule of the 1%, and whose material interests are therefore inextricably bound up with it.
I would have thought this was apparent to everyone — that the "99% v. 1%" dichotomy was an exaggeration for rhetorical and sloganeering purposes, but that it doesn't really correspond to the actual power structures and distribution of wealth in advanced capitalist societies. Laxer is correct that this dichotomy is false. The 99% are not all allies, and it is foolish to pretend that they are. Moreover, it glosses over and obscures real class differences.
It's not about enforcing orthodoxy at all. It's about understanding the class nature of society and knowing who your allies are and who they aren't.
This will not be enough to close a $16 billion gap: CUPE has estimated that taking corporate tax rates back up to 14% would raise about $2.5 billion per year: see:
It's not about enforcing orthodoxy at all. It's about understanding the class nature of society and knowing who your allies are and who they aren't.
I appreciate your response and will say, at the outset, that what I wrote may well be nonsense. Let me, however, say what I know, beginning with an acknowledgment that my comment is not as clear as it might be.
Seems to me that Laxer is doing several things, two of which you point out:
(1) giving us his understanding of the class nature of society;
(2) telling us who our allies are and who they aren't.
Further, I believe that he is quite clearly cautioning us not to have anything to do . . . them! What follows is the sentence in Laxer's column that I highlighted for emphasis:
More importantly, nor does it mean that the "99 per cent" share common interests and that they can work together, in any meaningful sense, to rectify the problems as raised. (emphasis GB)
I heard a similar caution 40 years ago on a warm summer evening in a Toronto apartment at a social event of the North York Waffle. The words "Purge and Purify" were spoken as part of that caution. They were said (and you will I hope accept my opinion on this matter) with the intent of enforcing orthodoxy.
The intent of Michael Laxer's caution is the same as that caution given those many years ago: Don't have anything to do with them. It is enlightening to learn that people take that caution seriously even today. There is nothing inappropriate with his giving such a caution; nor is there anything inappropriate in my rejecting it, which I happily do.
So, YES, we speak in a walled garden. And though some of us are not entirely thrilled with the presence of (to say nothing of the remarks of) others of us, we can shoulder on together, if we choose to do so. Those of us who choose otherwise resort, on occasion, to abuse, which was the subject of my previous comment. A pity.
Sounds to me like you're just grinding an axe here.
Who are you referring to by "them"? The 99%?
Laxer wrote:
More importantly, nor does it mean that the "99 per cent" share common interests and that they can work together, in any meaningful sense, to rectify the problems as raised.
I see nothing wrong with that statement. Do you think that all those below the 99th income percentile share common interests and can work together in any meaningful sense to rectify the problems as raised? If so, you should have paid more attention at those Waffle meetings.
Some historians put their numbers at anywhere from a few thousand to a few million who will remain rabidly loyal to the regime even after their overthrow by the majority. They are the next group in the hierarchical power structure who benefit by the autocracy and will defend it at all cost and to the bitter end.
I guess it's a bad thing that Hudak won the election, because he is merely following through on the Common Sense Platform Part II upon which his campaign was based.
Oh, wait....
A situation like this could really force the LIberals to pick one side to lean on, left or right, to keep the government afloat. One single misstep and it's a 2012 election.
As Bay Street Bugs Bunny once said to Pete Puma, 'One lump or two, Pete?' And to which Pete replied,
Awww no thanks, I'll jus' help m'self. <proceeds to hammer himself on the head with a mallet>
I asked my kids if they wanted to pay for Ontario's current deficits in the future, and they said "No way dad!" How ungrateful of them!
Yes indeed, amazingly ungrateful, considering that social spending benefits children just as much as, if not more than, adults. But I'm guessing your kids weren't told that part, right? That education and day care actually cost something, as does health care?
Gee, why can't all social and economic policy be decided by asking over-simplified, right-wing, biased questions of little kids?
Edited to add: I didn't misunderstand your post, did I, Uncle John? Were you maybe being sarcastic? If so, sorry for not catching it...
'
Yes indeed, amazingly ungrateful, considering that social spending benefits children just as much as, if not more than, adults. But I'm guessing your kids weren't told that part, right? That education and day care actually cost something, as does health care?
Gee, why can't all social and economic policy be decided by asking over-simplified, right-wing, biased questions of little kids?
Edited to add: I didn't misunderstand your post, did I, Uncle John? Were you maybe being sarcastic? If so, sorry for not catching it...
I'm with Michelle and most socialists on the matter. Health care and education costs what it costs and should not, and can not, be run like a business or be thrown to "market forces" wolves. Wolves tend to leave nothing behind after theyre done feasting.
However, I said most socialists. In the USA, for example, there is private sector delivery of health services to the greater extent than most other developed countries. And they, too, know and understand that health care costs what it costs, and I think the privateers tend to push this idea to extremes. Private enterprisers and I imagine hospital boards might not be all that efficient when it comes to paying themselves or cutting corners when they have a blank cheque signed by taxpayers. So I think it's possible that there are two types of "it costs what it costs." They spend a lot more on health care in the US than any other developed country and yet have the crappiest national health statistics. I think a lot of money is wasted on health care fraud in addition to the duplication of health care admin.
Surely I am responsible for paying for the education and daycare of my children, as my parents were responsible for me (whether as an individual or part of a community). If I/we have to borrow money to do that, I/we should be responsible for paying it back. Eventually they might have their own children to support, which would be made more difficult were they to have my/our debts to pay.
The NDP has a good track record of being fiscally responsible. Why don't we focus on that, instead of imitating fiscally irresponsible Conservative policy? Loading debt on future generations without their consent is morally bankrupt.
Ah, okay, I see where you're coming from. My sarcasm was perhaps unjustified. :)
So you're thinking we run balanced budgets, and the community pays for what needs paying for as we spend it, right? But by "community" I'm assuming you mean society as a whole, including corporations, which, as the price for operating in our midst and selling their goods and services to us, must pay taxes for the betterment of our society (not to mention so that they don't get an educated and healthy workforce for free), so that we don't leave debt to the next generation to pay.
I can get on board with that.
I don't see why a country like this cannot afford to pay for all the services it wants through general revenues. The problem is that people do not want to pay. Recently they asked people about medicare, and the respondents were all really concerned about it. However no one asked, "If we needed a tax increase to maintain medicare in this country according to the principles of the Canada Health Act, would you be willing to pay your share?"
TWO provincial elections ago, Ontario premier McGuinty put in a really regressive health care levy, which really stings you if you are on minimum wage. Been there. Yet McGuinty got re-elected twice. So I think if you were to say, "look, we need more taxes for health care", I think most would go for it, especially if it was way less regressive than McGuinty's scheme...
I don't see why a country like this cannot afford to pay for all the services it wants through general revenues. The problem is that people do not want to pay.
I think it's that Ottawa simply chooses not to raise overall taxes in order to pay for them. This is what neoliberalism looks like in a country still using an obsolete and uncompetitive electoral system. Our corrupt stooges in Ottawa with about 24% of eligible voter support under them don't have to do what the large majority of Canadians want them to. Ottawa's overall program spending is billions less than it is for the rest of Canada. It's a top-down system that pits smaller provincial economies against larger ones typically governed by Liberal and Tory governments setting the pace for everything from provincial corporate tax rates to minimum wage.
Total tax revenues as a percentage of GDP: OECD
Ontario losing billions in funding revenue, Commission told
Premier of Canada's largest province feigning impotence, too. Someone should tell Dalton Pinocchio that it's not a real medical condition.
Ontario losing billions in funding revenue, Commission told
Premier of Canada's largest province feigning impotence, too. Someone should tell Dalton Pinocchio that it's not a real medical condition.
The article starts with:
but it doesn't say what the policies are. Anyone know?
but it doesn't say what the policies are. Anyone know?
Nordic country policies and basically the opposite of everything Pinocchio McGuilty has done or not done since 2003.
Ontario's Liberal Government have been Herbert Hooverians on taxes - they've refused to tax those most able to pay them and raised taxes and user fees for those least able to pay.
Yeah I have to agree McGuinty's health tax levy is particularly nasty based on ability to pay. Ironically, even Harris' was less regressive than this!
The NDP has a good track record of being fiscally responsible. Why don't we focus on that, instead of imitating fiscally irresponsible Conservative policy? Loading debt on future generations without their consent is morally bankrupt.
I agree:
Balanced Budgets Or Social Spending? Pick One
...
“Spending Problem?”
...
Who Is Better At It?
but it doesn't say what the policies are. Anyone know?
Nordic country policies and basically the opposite of everything Pinocchio McGuilty has done or not done since 2003.
Ontario's Liberal Government have been Herbert Hooverians on taxes - they've refused to tax those most able to pay them and raised taxes and user fees for those least able to pay.
So "adopt policies that could be used to fund sustainable public services" is bafflegab for "raise taxes"? Who knew?
So "adopt policies that could be used to fund sustainable public services" is bafflegab for "raise taxes"? Who knew?
Canada's overall tax revs as a percentage of GDP are below the OECD average.
And never mind the EU15 avg.
And never mind still the Nordic country avg.
Still think Canadians are over-taxed? Pull the other one - it's got bells on.
So "adopt policies that could be used to fund sustainable public services" is bafflegab for "raise taxes"? Who knew?
Canada's overall tax revs as a percentage of GDP are below the OECD average.
And never mind the EU15 avg.
And never mind still the Nordic country avg.
Still think Canadians are over-taxed? Pull the other one - it's got bells on.
I agree that if you take, say, Sweden as a reference point, there's lots of room to raise the top marginal income tax rate on employment income (by 10% or so) and the GST (again by 10% or so) for Canada to be comparable. The Swedes pay a lot more consumption and income taxes on labour than we do. On the other hand, they only pay 30% income tax on investment income, and that only at the Federal level, so Canadians actually pay more on that piece. See:
http://www.taxrates.cc/html/sweden-tax-rates.html
However, my point was that testimony to the Commission (which is really just the Public Services Foundation of Canada dressed up) used such a careful euphemism rather than just saying "raise taxes".
I don't see a lot of Canadians pointing at themselves and saying "raise taxes on me", but I wouldn't be surprised to see Canadians pointing at other Canadians and saying "raise taxes on him". It's how it usually goes.
Oh no you can't lower corporate taxes or capital gains taxes any more. Not in Canada. That would be right wing fascism.
Compare tiny Sweden's economy with Canada's. Canada is, as the American military once said about it, a northern icebox of natural resource wealth to be raided at corporate America's convenience. We are exporting massive, simply massive amounts of oil and natural gas and hydroelectric power to the northern states.
We would not have to lower corporate taxes or taxes on natural resource exports if there wasn't this race to the bottom mentality engrained in Ottawa. And it's been a case that none of the larger, more influential provincial economies are willing to challenge capital at the same time, like Dalton Hoover's government in Toronto spending us into a bottomless hole in setting us up for austerity in the process.
In Ontario the Liberals are basically copying taxation models of the 30 some-odd bankrupt US states in refusing to tax the wealthy and profitable corporations. That was Herbert Hoover's approach to taxation during the depression era, and that gov't actually did raise taxes while claiming to be practicing Keynesianism. It wasn't true, though.
Canada has much more room for raising overall taxes than tiny Nordic country economies do. Their corporations raided resource wealth long ago and left them with little room for taxing timber and mineral and profits that were looted from their countries by marauding capital long ago. Today they have the most efficient taxation models in the world. It doesn't mean we have to follow them to a tee on the consumption side, although that is one more possibility among several. Bags of room on taxation in Ontario and the rest of Canada. We should not have to be gutting public services Herbert Hoover style. We've lost somewhere more than $6 billion in wages from circulating in Ontario's economy since the loss of so many full-time, unionized manufacturing and related sector jobs since 2003 in order to prop-up a higher dollar and the fossil fuel industry in the prairies. Smaller government and pulling even more money out of Ontario's economy is not going to raise our standard of living or contribute to a more competitive economy Nordic style. The results are in - and more generous social spending is now thought to contribute to economic competitiveness not subtract from. There is a valid alternative to Margaret Thatcher's TINA.
@ Fidel: so which taxes would you raise? HST in Ontario to 25%? (I can't see that being a vote-getter.) Top marginal rate increase? (Brian Topp is floating this right now.) Or would you raise corporate taxes only and leave HST and personal income tax alone? If you follow the Sweden link I posted you'll see that Swedish and Canadian corporate taxes are actually pretty close (once you count provincial tax in Ontario) - they're both around 25% right now.
I would support removing HST from necessities and leaving unrestricted ITC's alone. If I was looking for votes in the conservative bastion of Ontario among voters still voting and during what is sure to be neoliberal economic meltdown part III or IV or whatever in the next year or two, I would support what the ONDP is promising to, which is to spend more in health care and public services while costing less than the other two parties' platforms overall.
Federally, I think the NDP could raise overall tax revs in general and replace what was removed from social transfers since 1995. I think that would be a good place to start for our first NDP government in Ottawa.
@ Fidel: that's kind of a nonspecific answer to the question of which Ontario taxes you would raise. You can see here:
http://www.fin.gov.on.ca/en/budget/ontariobudgets/2011/ch2h.html#c2_secH...
that Ontario spending has increased by 66% since 2002-2003, faster than can be accounted for by a combination of inflation (running around 2.5% over the period) and population growth. So assuming counterfactually that Ontario has a revenue problem, not a spending problem, what taxes would you raise?
@ Fidel: that's kind of a nonspecific answer to the question of which Ontario taxes you would raise. You can see here:
http://www.fin.gov.on.ca/en/budget/ontariobudgets/2011/ch2h.html#c2_secH...
that Ontario spending has increased by 66% since 2002-2003, faster than can be accounted for by a combination of inflation (running around 2.5% over the period) and population growth. So assuming counterfactually that Ontario has a revenue problem, not a spending problem, what taxes would you raise?
They have cut services and raised taxes and user fees since 2003, no question about it. And they plan on freezing spending and reducing the deficit. The Liberals are panicking over the deficit which they themselves created with help from Ottawa no less.
The Liberal Government's problem, ygtbk, is that they have expenditures of around $124 billion and revenues of almost $109 billion. That's an annual budget deficit of about $16 billion. Do you see a problem with this and the fact that they are talking abour further public sector job cuts as well as reduced services?
The ONDP's platform is to increase provincial spending more than they would reduce taxes while, at the same time, costing anywhere from quarter-billion less than the Liberals plan to $2.6B less than the Tories' plan for cradle to grave socialism for profitable corporations and rich people.
That's right, there is no need to lower corporate taxes in Ontario, either. Non-financial corporations in Ontario are awash in cash to the tune of somewhere more than $450 billion. They are sitting on stacks and stacks of cash with no indication that they intend to invest in or create jobs in Ontario. Why would we want to give them even more money? Would it be so they can sit on an even larger pile of cash while the government in Toronto slashes public services and full-time jobs? Did sucking billions of dollars more out of the economy during an economic depression work for Herbert Hoover and Americans in the 1930s?
In my sliver of the world, it looks like a whole lot of us could afford a few more dollars in taxes toward the social determinants of health.
Mine too.
@ Fidel: I'm not sure if you're unwilling to answer my question or unable to answer my question. You say you want to emulate the Nordic countries to "preserve" Ontario public services (this despite a massive run-up in provincial spending and debt since 2002-2003) but you are unable or unwilling to say which Ontario taxes you'd raise. Surely it can't be that difficult.
Star Exclusive: Ontario To Face Sweeping Cost Cutting - by Linda Diebel
http://www.thestar.com/news/canada/politics/article/1119065--don-drummon...
"It's as if Premier Dalton McGuint gave economist Don Drummond the province of Ontario tied up in a nice big bow. In a careers brimming with plum positions, Drummond calls this one his 'dream job': McGuinty put him in charge of a commission on the public service with the power to effect all our lives in Ontario...
His nickname is Premier Drummond, but Darth [Vader] Drummond might soon fit the bill - His report -already in the premier's office waiting for Drummond's final sign off in a few days - goes far beyond expected cuts and covers sweeping recommendations that would consolidate ministeries, overhaul others and change the health care system as we know it...
'I was always very clear at TD [Senior VP and Chief Economist] about what I was trying to do and what they expected of me,' he continues. 'Here was the cost of my group and I knew that if you wanted to survive, I had to make more money for the bank than was the cost of my group...There wasn't a bit of ambiguity about my value to the bank.'
And he wants to bring that discipline to how the province does its business. After full evaluation of each program,
'if it's not going well, it's gone."
Welcome to Bankster-Rule in Ontario...
@ Fidel: I'm not sure if you're unwilling to answer my question or unable to answer my question. You say you want to emulate the Nordic countries to "preserve" Ontario public services (this despite a massive run-up in provincial spending and debt since 2002-2003) but you are unable or unwilling to say which Ontario taxes you'd raise. Surely it can't be that difficult.
ONDP's fiscal framework doc
Fyi, Ontario is not a Nordic country with federal powers for taxation and spending. It's a northern province living beyond its means within a federal fiscal straightjacket and in debt to the tune of more than $250 billion.
@ Fidel: I'm not sure if you're unwilling to answer my question or unable to answer my question. You say you want to emulate the Nordic countries to "preserve" Ontario public services (this despite a massive run-up in provincial spending and debt since 2002-2003) but you are unable or unwilling to say which Ontario taxes you'd raise. Surely it can't be that difficult.
ONDP's fiscal framework doc
Fyi, Ontario is not a Nordic country with federal powers for taxation and spending. It's a northern province living beyond its means within a federal fiscal straightjacket and in debt to the tune of more than $250 billion.
I agree that Ontario is a province and not a country. Having said that, how are your comments in posts #11 and #13 in this thread to be interpreted?
The NDP's plan would have boosted stimulus to increase Ontario's GDP by a greater amount than overal platforms(taxing and spending) of either the Liberal or Conservative parties. If you want to compare Nordic countries at the federal level with provincial level NDP, then that's where the ONDP looks more Nordic than either of the two more conservative parties in Toronto. It is a fact that corporate and personal tax cuts deliver less bang for buck than does direct public spending. Yes, the multiplier effect would be lower in Ontario because it's a smaller economy than national level but spending effects would be similar.
The only way we could truly emulate Nordic countries with their plowing a whopping third of GDP back into social spending is with political will in Ottawa. The Nordics make our laissez-faire do-nothings in Ottawa appear to be anywhere from invisible to non-existent. You can't exclude federal government policies when comparing Nordic countries to the rest of the world. But on the provincial end of things, we don't have to cut public services or shovel money to rich people and corporations while sliding further into debt, either.
Corporate tax cuts alone are not linked with spurring economic growth. I think someone and maybe two posters above may have implied, or perhaps would like to suggest, that corporate tax cuts and low personal marginal rates alone are what make Nordic countries economically competitive. That's not true because there are some really piss-poor thirdworld capitalist countries where corporate and personal taxes are very low, and they are not listed in the top ten or top 20 most competitive economies in the world.
@ Fidel: I think most people would agree with you that low marginal tax rates alone are not enough to ensure prosperity. But unless I'm mistaken no-one in the thread so far has made that assertion. So I'm thinking that your current point is that Ontario cannot on its own improve economic growth, and that that will have to wait for a Federal NDP government. Is that more or less your point, or have I misunderstood it?
I think provincial governments are able to tweak taxes here and there, ensure delivery of programs, legislate and regulate below the NAFTA radar etc. But they have no control over the national economy, or national taxation and spending. In that sense the Nordic countries are like one big union setting corporate tax levels and committing to social spending on national levels. We don't have that here. What we have in Canada is top-down neoliberal ideology resulting in race to the bottom mentality.
Yes, I think what we need is a federal level NDP government with control of federal purse strings in order to create Nordic style social democracy. And I would want to give then several terms in power not so unlike the first CCF governments in Saskatchewn needed to start a province. The challenges are different today.
We've seen 'austerity' routine before TorStar comments
The reality is that the issue is the mountain of suffering and deprivation visited upon those who can afford it least. The rich are never told they'll have to pay a private contractor to plow their streets. Rather, the poor are told their community centre must close and their transit fares must rise.
Austerity is a combination of Spartan toughness and puritan rectitude. But notice that the toughness and rectitude are exhibited by those who dispense the pain upon their victims. Tax revenues may be falling, but corporations must be given tax cuts and faster depreciation allowances. Some libraries may close, but management consultants are retained at thousands of dollars per hour to collate information readily available at city hall.
A Torontonian on selective pain otherwise known as 'austerity.'
Austerity Czar should follow his own recommendations on poverty reduction Federal and Ontario governments are losing $13 billion a year due to inaction on poverty - a loss equal to 15 per cent of the provincial budge
Dalton McGuinty shocker: tells truth, at least partially:
http://www.thestar.com/news/article/1120501--dalton-mcguinty-warns-ontarians-leaner-times-are-looming?bn=1
Given how Ontario spending has ramped up during his tenure as Premier, this is quite the stunning revelation.
Dalton McGuinty shocker: tells truth, at least partially:
http://www.thestar.com/news/article/1120501--dalton-mcguinty-warns-ontarians-leaner-times-are-looming?bn=1
Given how Ontario spending has ramped up during his tenure as Premier, this is quite the stunning revelation.
Ontario's spending increases have covered the Bank of Canada's inflation targets of 2% but not population growth. It's like wearing a jock strap your mother bought you when you were twelve and never buying a new one to accommodate for "expansion." Ontario has seen a greater net exodus of young people to other provinces than any other since the neoliberal Harris-Pinocchio regimes in Toronto.
Austerity: Making the Same Mistake Again? CJE
Ontario's spending increases have covered the Bank of Canada's inflation targets of 2% but not population growth. It's like wearing a jock strap your mother bought you when you were twelve and never buying a new one to accommodate for "expansion."
What a painful metaphor. However, it's incorrect.
If you look at the link I posted at post #23 in this thread, you can see that spending over the period increases from 74,558 to 124,068 (up by more than 66%). Population increases from 12,091 to 13,374 over the period (up by 10.6%). Instead of the 2% inflation you quote, let's assume a more generous 2.5% per year over the 9 year period.
Then if spending had increased with population and inflation, it would currently be at 74,558 * (13,374/12,091) * 1.025^9, which is 102,993. Spending is in fact projected at 124,068. The difference of 21,075 is bigger than the current Ontario deficit.
In other words, if spending increases had been held to growth in population and inflation, Ontario would currently be in surplus.
This is the reality that Dalton will not acknowledge.
You're including deficit payments on debt, which is money not invested in programs spending, infrastructure, or improving the quality of life for Ontarians in general. But still...
I should have said their austerity budgets from here to 2015-16 expand by a bit above 2%. That rate covers the BoC targets but not population growth.
And there is no need to be in the debt situation they are in had they not dropped taxes on the rich and corporations since Harris' time. We went in the hole to the tune of $35 billion then to pay for tax cuts to rich friends of that party. The Liberals have been the same with refusing to tax those most able to pay. McGuinty's speech to the Canadian Club is basically begging them to create some jobs after years and years of corporate welfare donations in the form of tax cuts. They are sitting on piles of cash while the government slides further into debt for the sake of maintaining a conservative nanny state.
And so it arrives, with a big thump - seriously, this thing is over 500 pages long! I've just read the general part of the executive summary so far. The Drummond Report assumes, likely correctly, that real economic growth in Ontario will not exceed 2% per year for the foreseeable future. Growth is constrained by a strong currency, a reduction in labour force growth and the continuing decline in manufacturing as an employer. It was also directed not to consider tax changes so the balance of effort necessary to reduce the province's deficit falls on limiting spending and on fee increases.
So here's the core of the bad news - the report calls for spending increases to be limited to 0.8% per year for the next seven years. More specifically, it recommends increases of 2.5% per year for health care, 1% for education, 1.5% for post-secondary education, 0.5% for social services and everything else the Ontario government does has to be cut by 2.4% per year. So yes, it's pretty ouchy.
Drummond report recommends wage freezes and increased class sizes amid ‘harsh reality’ for Ontario
quote:
Recommendations from the Commission on the Reform of Ontario’s Public Services include:
• Departments should not budget for any wage increases
• a zero wage budget for all public employees
• Wage freeze for doctors
• Give Local Health Integration Networks (LHIN) more responsibility over funding and integration
• Divert patients who do not need acute care in hospitals to family doctors, clinics and nursing homes
• Increase university nursing programs and use nurse practitioners more effectively
• Expand role of pharmacists to permit them to give routine injections, inhalations and immunizations
• Create online system for prescription refills, test results and appointment scheduling
• Link Ontario Drug Benefit program, currently for seniors and social assistance recipients, directly to income
• Cancel full-day kindergarten
• Cap elementary classes from 20 to 23; junior school classes from 24.5 to 26 and secondary school classes from 22 to 24
• Phase out 70% of 13,800 non-teaching staff by 2017-18
• Charge students for school transportation costs
• Encourage secondary schools with low attendance to expand to a Grade 7-12 model
• Consider raising the retirement age for teachers. Currently, the average teacher retires at 59 after 26 years of service and collects a pension for 30 years
• Encourage colleges and universities to specialize so they’re not all offering the same type of programs
• Keep current tuition annual increases to a maximum of 5%
• Negotiate with federal government to designate inmates serving more than six months to penitentiaries. Currently, inmates must be sentenced to two years or more to be a federal responsibility.....
http://news.nationalpost.com/2012/02/15/ontario-must-act-swiftly-and-bol...
Two excerpts from an article by Tanya Talaga in the Toronto Star about the Drummond Report:
PUBLIC HEALTH. The 36 public health agencies should be folded into the LHINs, the report says. Public health should also be the sole responsibility of the provincial government. The current requirement that 25 per cent of the agencies receive funding from cities should be reviewed. More money should be put in preventative health measures, it added. Drummond points out only 25 per cent of the population's health outcomes are attributed to the health system. Yet only three-quarters of environmental factors that account for health outcomes such as education and income barely register in the health-care debate.
(Finally, someone in the popular press is saying out loud what we have known for some time: societal health and well-being are closely associated with income.)
MENTAL HEALTH. For too long, mental health and addiction costs have drained the system without being adequately addressed. Mental health costs are estimated at $39 billion annually and the ripple effects are felt in the justice, education and social services sectors. Care is currently delivered through 10 ministries, 440 children's agencies, 330 community mental health agencies and 150 substance abuse centres, the commission noted. There isn't one body to coordinate care and that has to change, Drummond said.
(Yes, but this shouldn't lead to an additional level of administration with no additional care.)
I highlighted what I found interesting and added comment in parentheses. Here's a link to the article:
http://www.thestar.com/news/canada/politics/article/1131861--drummond-report-hospital-amalgamations-and-more-power-for-lhins-among-recommendations
Confined to cuts
Drummond Commission's mandate did not permit tax increases.
Thousands of Ontarians will likely sleep fitfully tonight, knowing their fate is in the hands of Don Drummond. Others will sleep like babies, knowing the powerful ex-banker can do them no harm.
Drummond's long-awaited report, unveiled February 15 at Queen's Park, lays out a deficit-shrinking program of austerity that is expected to have harsh implications for public employees — from hospital cleaners to day care workers — as well as delivering service cuts with devastating impacts on the poor, the sick, women in shelters and the disabled.
But if Don Drummond looms large in the nightmares of some of Ontario's most vulnerable citizens, he presents a friendly banker's face to the affluent, who are to be spared paying any additional taxes as their contribution to the province's deficit fight....
http://www.straightgoods.ca/2012/ViewArticle.cfm?Ref=147&Cookies=yes
Ontario health care delivery changes include assembly-line style private clinics
Under-funded public hospitals to suffer more cuts.
TORONTO, ON, February 13, 2012: Tough talk by Ontario's health minister on salary increases for the province's 25,000 physicians and the creation of new private, assembly-line procedure and surgery clinics should be viewed with a "grain of salt and a lot of questions about the motives behind these clinics, who stands to benefit and the potential risks to the health of Ontarians," says Michael Hurley, the president of the Ontario Council of Hospital Unions (OCHU).
Racing to come out ahead of the February 15 release of a report reviewing public services' cost-cutting, the health minister recently announced health service delivery changes that could include private birthing, knee and hip surgery and medical procedures clinics.
The cost-cutting and massive redesign of health services is coming even though over the last decade, health care spending has shrunk as a percentage of total program spending, down from 46 percent to 42 percent, while Ontario's population increased. In the same period, payments to physicians have increased by 88 percent and drug costs doubled in the last 20 years.....
http://www.publicvalues.ca/ViewArticle.cfm?Ref=001156
Drummond Proposes Harris Style Cuts - by Bill Bradley
http://www.mediacoop.ca/story/drummond-proposes-harris-style-cuts/9936
"To meet its own goal of a balanced budget in seven years, the government will have to cut program spending more deeply on a real capita basis, and over a much longer period of time, than the Harris government did in the 1990s,' Drummond wrote on page 10 of his executive summary.."
Banker Occupied [Canada] Europe and America - by Stephen Lendman
http://sjlendman.blogspot.com/2012/02/banker-occupied-europe-and-america...
"Money power rules. Across [Canada], Europe and America, governments follow banker diktats. They demand economies and people suffer to assure they're paid.."
The entire austerity crisis agenda is being shoved down our throats all for one reason: to avoid an increase in the progressive personal income tax.
The Drummond Report was predicated on the assumption that there would be no tax increases. Its draconian prescriptions for gutting government social and support programs and reducing the living standards of public servants are proposed as an alternative to tax increases.
The truth is that there is no crisis, there is no necessity of any of the Drummageddon austerity measures, because the entire fiscal health of Ontario could be assured by implementing tax increases that would hit the rich hardest. Instead, the McGuilty government proposes to make the working class pay for the tax cuts, bailouts, subsidies, and record profits enjoyed by the 1% as the income gap grows ever wider.
We've been cutting corporate and income taxes for fifteen years and now we're surprised that the cupboard is bare and we need to pay a guy 1500$ a day to tell us that? Give me a break. McGuinty's going to have a caucus revolt on his hands if he goes forward with this - we all know that Liberals don't run as candidates to deliver any sort of bad news to anyone.
Given a choice though, they'll cut off the poor and middle class, while protecting their wealthy benefactors.
Time to raise corporate taxes because the cuts there don't create jobs anyway.
And time to raise income tax rates for the rich.
As usual, the 'austerity' agenda is just another wealth grab by the rich.
I wonder who's REALLY paying (off) Drummond.
I think my posts at #23 and #37 are relevant here. Dalton McGuinty has been an incredibly poor fiscal manager. If he had increased spending in line with population and inflation (hardly the definition of draconian cuts) Ontario would not be in deficit today. This problem is entirely self-inflicted by the Liberal government, and they're going to try to use the Drummond report as a reason to cut, rather than say "you know, we're completely incompetent, and here's the problem that we caused..."
The federal government has cut back GST from 7% to 5% since 2006, so HST (let's just pretend it's been in place in Ontario the whole time, which is not quite true) has reduced from 15% to 13%. The Harper cuts in GST were widely criticized as regressive at the time. Maybe Dalton should boldly increase the Ontario portion of HST from 8% to 10%?
ygtbk
..your numbers, i have no reason to doubt, are accurate. this makes mcguinty competent because he is serving the interest of capital. the problem of rampaging capital, as seen to be going everywhere, cannot be solved by producing logical finances by political force that matches the attack which then creates the space for change. so organize and resist is what i suggest. shut the province down before this goes any further.
Easier said than done, epaulo
..yes but i see little choice. do you?
eta:
..sorry deb, i didn't mean to take this lightly. i really don't see an alternative other than accepting what comes down. we can't negotiate our way out of these austarity measures nor vote our way out.
..yes but i see little choice. do you?
eta:
..sorry deb, i didn't mean to take this lightly. i really don't see an alternative other than accepting what comes down. we can't negotiate our way out of these austarity measures nor vote our way out.
I'm not suggesting that it's a wrong strategy, just that it's difficult to do.
It requires that people shut down the province - ie, most of us go without pay, buy no goods, everybody suffers, so it's hard to motivate people to that with unknowns on the other side, particularly those with kids.
Just sayin ...
The Harper cuts in GST were widely criticized as regressive at the time.
Only by people who don't know what "regressive" means in the context of taxation. The same people who think McGuilty should increase the provincial sales tax, rather than increasing the progressive income tax rates.
..yes but i see little choice. do you?
eta:
..sorry deb, i didn't mean to take this lightly. i really don't see an alternative other than accepting what comes down. we can't negotiate our way out of these austarity measures nor vote our way out.
I'm not suggesting that it's a wrong strategy, just that it's difficult to do. It requires that people shut down the province - ie, most of us go without pay, buy no goods, everybody suffers, so it's hard to motivate people to that with unknowns on the other side, particularly those with kids. Just sayin ...
..i agree, i was too quick to throw that shutting down the province thing out there. in my mind if the austerity goes to plan both federally and provincially there will be more shrinking of an economy that has already begun to shrink. in turn this will require more unemployment and then even more austerity, more squeezing. surviving this is difficult as well on a whole lot of levels. i just can't see people putting up with it.
The Harper cuts in GST were widely criticized as regressive at the time.
Only by people who don't know what "regressive" means in the context of taxation. The same people who think McGuilty should increase the provincial sales tax, rather than increasing the progressive income tax rates.
I was thinking of examples like this:
http://www.policyalternatives.ca/publications/commentary/my-15-minutes-c...
and this:
http://www.policyalternatives.ca/sites/default/files/uploads/publication...
Take a look at Table 1 on page 4, for example. Their argument at the time was that cutting GST was regressive because high-income families benefitted more. If their numbers are correct an increase in HST (same base as GST) would hit higher-income families harder than lower income families.
The combined federal-provincial sales tax rate was 15% in Ontario from 1991 to 2005, and it wasn't dogs-and-cats-living-together apocalyptic. We could go back to that level. People would scream at Dalton for breaking an election promise, but he really ought to be used to it by now.
Yes, I'm well aware of the failings of the CCPA on this issue. As you said, "If their numbers are correct an increase in HST (same base as GST) would hit higher-income families harder than lower income families." That's so patently not the case that it proves they were wrong.
The report also recommends "alternative service delivery" ie privatization in some ministries. And it says that bumping rights are an impediment to the most efficient deployment of the civil service. Is Drummond indirectly recommending the gov't take on OPSEU?
Yes, I'm well aware of the failings of the CCPA on this issue. As you said, "If their numbers are correct an increase in HST (same base as GST) would hit higher-income families harder than lower income families." That's so patently not the case that it proves they were wrong.
Are you saying Table 1 on page 4 of the CCPA report linked to above is wrong? If so, do you have proof? Asserting that they're wrong is not the same as proving that they're wrong.
This is not the thread for such a discussion. We have discussed the regressive nature of the GST/HST and consumption taxes in general in many previous threads. I would be happy to discuss this with you in another thread on that topic.
But since I have prolonged the thread drift with this post anyway, I will at least point out that according to Table 1 on Page 4 almost 63% of the benefit of a GST reduction goes to those in the lower two brackets of income shown in the table. The "average" individual benefit is lower because there are so many more people in the lower two brackets than in the higher ones. Wealthy families receive a higher average benefit in straight dollar terms, but what the table doesn't reveal is how the average dollar-value benefits translate into percentage of family income. For example, a benefit of $129 to a family living on $25,000 a year is a higher percentage of income than a benefit of $500 to a family living on $100,000 a year. That's because the GST takes a proportionately bigger bite out of low income families than out of high-income ones - the very definition of regressive taxation.
This is not the thread for such a discussion. We have discussed the regressive nature of the GST/HST and consumption taxes in general in many previous threads.
Apparently Jim Stanford (considered by many to be a progressive economist) didn't get the memo, since in the link above he argued that cutting GST (a la Harper) was regressive. Pity. Perhaps he knows that basic items like groceries are exempt, and is aware of the following programs?
http://www.cra-arc.gc.ca/bnfts/gsthst/fq_qlfyng-eng.html
http://www.rev.gov.on.ca/en/credit/stc/
And your example is not very convincing: 129 / 25000 is so close to 500 / 100000 that no-one would notice the difference.
I also disagree entirely with your relevance assessment. The current Ontario deficit is about $16 billion per year. If we could cut that by say $5 billion per year (a rough estimate - is there an economist in the house?) by taking one single step, then we've reduced the austerity problem considerably, wouldn't you say?
The deficit is caused by corporate tax cuts and subsidies for the rich.
Raising consumption taxes makes the workers pay disproportionately to their income and disproportionately to their responsibility for the economic mess that capitalism now finds itself in (namely zero).
Your suggestion is obscene.
Your suggestion is obscene.
I do not think this word means what you think it means.
Abominable, disgusting, repulsive
The deficit is caused by corporate tax cuts and subsidies for the rich.
True
In Canada I would think this is true of consumption taxes. The neoliberal ideology here says that cutting taxes in general will enhance business activities and job creationm, even though there is no proof of that. Their HST does little to improve the situation for manufacturing in Ontario. Big business leaders in Canada are all for raising consumption taxes when the feds say they need money to fund program spending, just so long as corporate taxes and taxes for high income earners remain low. NIMBY is their attitude on taxes.
Nordic countries, otoh, have made good use of consumption taxes while maintaining low corporate taxes and low tax rates on capital in general. Social democrat governments in Sweden and Denmark have been committed to fully funding social spending through consumption taxes and at higher rates than here.
Abominable, disgusting, repulsive
As a rational response to the suggestion that we consider whether Ontario might return to its 2005 level of combined PST/GST (=HST), this strikes me as just a tad over the top.
Here is what economist Erin Weir said in 2010 about raising GST:
Raise My Taxes
As Michael Bliss notes in today's Globe, "the GST, being a consumption tax, is fairly regressive." Of course, an enhanced GST credit could compensate the poor. But a higher GST would be rather ineffective at redistributing money from wealthy Canadians and foreign shareholders.
In Weir's opinion the issue of raising taxes should not be limited to consumption taxes. We should be looking at more progressive options, like raising income taxes for the wealthy and profitable corporations.
Abominable, disgusting, repulsive
As a rational response to the suggestion that we consider whether Ontario might return to its 2005 level of combined PST/GST (=HST), this strikes me as just a tad over the top.
Not over the top at all. It's a perfectly rational and reasonable reaction to anybody who comes here and touts austerity measures designed to make the workers pay for the financial crisis caused by the greed of their bosses.
Abominable, disgusting, repulsive
As a rational response to the suggestion that we consider whether Ontario might return to its 2005 level of combined PST/GST (=HST), this strikes me as just a tad over the top.
Not over the top at all. It's a perfectly rational and reasonable reaction to anybody who comes here and touts austerity measures designed to make the workers pay for the financial crisis caused by the greed of their bosses.
Please consider posts #23 and #37. Ontario has specific problems that could have been averted if the McGuinty Liberals had had a clue about what they were doing. It's not a virtuous workers vs. greedy bosses problem - otherwise, you'd expect to see all the provinces with the same level of deficit as Ontario - it's a fiscal mismanagement problem. In particular, spending expanded too fast - if it had grown in line with population and inflation we'd have no problem to discuss here, because Ontario would be in surplus.
So, given that we don't have a time machine to send a very serious letter from 2012 Dalton back to 2003 Dalton, what should we do? I think returning to the status quo ante of 2005 on sales tax is a reasonable suggestion: more reasonable than believing that we're going to close the whole gap purely through spending restraint over multiple terms of government.
Here is what economist Erin Weir said in 2010 about raising GST:
Raise My Taxes
As Michael Bliss notes in today's Globe, "the GST, being a consumption tax, is fairly regressive." Of course, an enhanced GST credit could compensate the poor. But a higher GST would be rather ineffective at redistributing money from wealthy Canadians and foreign shareholders.
In Weir's opinion the issue of raising taxes should not be limited to consumption taxes. We should be looking at more progressive options, like raising income taxes for the wealthy and profitable corporations.
Certainly Weir's opinion is also the Brian Topp / Nathan Cullen federal position (probably other candidates as well):
http://www.ctv.ca/CTVNews/Canada/20120219/ndp-leadership-nathan-cullen-1...
In contrast to the understanding that the general public has of taxes, this discussion of HST is very nuanced.
I suggest that regardless of whether HST is progressive or regressive, most people hear proposals to decrease HST as confirmation of the conservative premise that, in general, lower taxes are better taxes and that "there is no such thing as a good tax."
The problem is with so-called progressives who think there is no such thing as a bad tax.
Of course those are not the only two alternatives. The whole gap can be closed by raising the progressive income tax and making the rich pay.
You may not like that idea, however, given your apparent indifference to the prospect of families with $25,000 annual income paying the same rate of tax as families with $100,000 income, thanks to regressive consumption taxes like the GST.
The problem is with so-called progressives who think there is no such thing as a bad tax.
Of course those are not the only two alternatives. The whole gap can be closed by raising the progressive income tax and making the rich pay.
You may not like that idea, however, given your apparent indifference to the prospect of families with $25,000 annual income paying the same rate of tax as families with $100,000 income, thanks to regressive consumption taxes like the GST.
If families with incomes of $25,000 pay the same rate of tax as families with incomes of $100,000, that is by definition proportional, not regressive. A per-capita tax (poll tax) would be regressive. I think you probably knew that. And I notice that when I mention income tax credits for GST/HST and exemptions for basics like groceries you tend to ignore the valid point that I've made. However...
To address your main point, I never said that increasing HST was the only possible action: just that (given that Ontarians were paying 15% combined PST/GST as recently as 2005) it might be a (relatively) painless starting point for fixing Dalton's mess.
But I'm interested: what would the top marginal income tax rate in Ontario have to be to close the $16 billion annual deficit?
If families with incomes of $25,000 pay the same rate of tax as families with incomes of $100,000, that is by definition proportional, not regressive.
And a proportional or flat tax is certainly not progressive. Under a progressive taxation system, the rich pay a higher rate of tax than the poor. That's what "tax brackets" are all about. That's what a fair tax policy means.
There was nothing "painless" about a 15% PST/GST in 2005. Raising consumption taxes by 2% is precisely the kind of austerity measure that hits the poor harder than the rich.
I don't know for sure, and I don't much care, because I certainly wouldn't be paying it. Andrea Horwath says Ontario lost $2 billion in revenue to corporate tax cuts alone. Sid Ryan says restoring the corporate tax rate to 14% "could balance the books without job loss or cuts to services". And Linda McQuaig draws our attention to a study published last fall in The Journal of Economic Perspectives:
An Angus Reid poll commissioned by CUPE found that while Ontarians generally oppose higher taxes, 90 per cent favour higher taxes on those with incomes above $500,000.
This comment today on Rabble from Michael Laxer:
"McGuinty, sensing perhaps that the [Drummond report] would be nasty, tried to do the usual preparation for its impact in January, by telling everyone that they would all have to "share the pain" when the austerity regime started. But never has this rhetoric been less true. There is no 'sharing' that will occur. Millions of people will have their lives impacted in ways that will range from the severe, in the case of the poor, to the serious, in the case of much of the middle class. . . . For austerity to have an impact on the lives of the wealthy like it will on the rest of us, taxes would have to be massively increased and laws put in place to remind corporations of their social responsibility to the society that created them and that they could not have existed without."
Laxer castigates the NDP for not exposing McGuinty's narrative for what it is, namely, a cover story for the 1%.
Is there a, "Yes, but . . ." reply to Laxer's criticism?
@ M. Spector:
1) Different people can rationally disagree on what constitutes fair tax policy - the babble threads on "guaranteed basic income" are a case in point.
2) The statement "I don't know for sure, and I don't much care, because I certainly wouldn't be paying it." is not really consistent with your previous statement "The whole gap can be closed by raising the progressive income tax and making the rich pay". I did a back-of-the-envelope calculation to get the top marginal personal income tax rate to close a $16 billion gap and the results implied a mass exodus from Ontario.
3) I agree that there's some room to raise corporate taxes in Ontario, since the rate was 14% as recently as 2010. See:
http://www.sse.gov.on.ca/medt/investinontario/en/Pages/bctx_605.aspx
I don't know if a corporate rate of 14% is enough to close the gap - do you have a link to any study that Sid Ryan might be citing?
4) You can read the Diamond and Saez paper here:
http://elsa.berkeley.edu/~saez/diamond-saezJEP11opttax.pdf
A couple of points of interest:
a) The paper derives a mid-range estimate of 73% optimal top marginal tax rate on labour income (see page 7). However, they do not derive an optimal top marginal rate on capital income (see pages 14-22, which basically argue that previous results in the literature are not relevant) and then come up with the remarkably weak conclusion:
"The bottom line is that uncertain future earnings opportunities argue against zero taxation of capital income, as do savings preference heterogeneity, limited distinctions between capital and labor incomes, and borrowing constraints."
In other words, interest, dividends, and capital gains should be taxed at some rate greater than zero, but they don't know what it is.
b) The paper deals with a single-period model, i.e. people don't have long-range responses to the optimal tax rates (see page 11). As Diamond & Saez acknowledge, a more progressive tax system could reduce incentives to accumulate human capital in the first place (also see page 11). I would add that people might vote with their feet and move to a different jurisdiction with lower tax rates.
I am now certain that we'll see some tax increases in the next provincial budget:
http://www.huffingtonpost.ca/2012/02/21/mcguinty-tax-promise-no-hike_n_1...
The "progressive" Toronto Star has had the Drummond Report as a link under its own masthead on its website since it came out. Some of its less interesting commentators, such as Martin Cohn, have written nonsensical articles with idiotic narratives about the "chickens coming home to roost" economically, etc. The National Post, Globe and the Toronto Sun, hardly surprisingly, have embraced its recommendations with a glee bordering on the obscene. It is as if they cannot wait to take these programs away from people and to watch life become that much harder for Ontario's citizens.
The report seeks to make constant the false ideas that neo-conservatives used to deconstruct the post-war social compromise, and it seeks to do so as a kind of permanent counter-revolution against the gains of workers and other groups economically that were the dominant ideological hegemony and narrative after the Second World War and until the mid-1980s.
But the report did not fall out of the sky and its defenders are not merely post-modern Chicken Littles. It is the outcome of an ongoing process of ideological re-education within the developed West that seeks to both reverse any traces of economic Social Democracy (in the traditional sense of the term) and that also seeks to make perpetual economic turmoil a constant so as to subsidize the lifestyles of people exactly like Don Drummond and so as to aid in the shareholder-return-driven amoral culture of profit that has destroyed the North American industrial base, wiped out the communities and jobs that existed for so many and that has successfully made even "left" parties sing its tune.
More from Laxer's article:
Instead, not a single party in mainstream "left"-thinking is calling for anything like this at all.
They have completely capitulated to the forward march of the relentless neo-liberal economic logic of tax cuts, service cuts, deregulation, anti-unionism and much more....
As with the Democrats in the U.S. and most of the Socialist and Social Democratic parties in Europe, the Liberals and the NDP have bought into almost every fundamental aspect of the new ideological order and, by doing so, have created and helped to perpetuate the very ideas and philosophies that hinder them in their pursuit not only of power but of actually making a difference and being anything other than a last defence against the "storm."
They have aided in their rhetoric, their platforms and, most importantly in their acceptance of the basic premises of the neo-liberal right, in perpetuating the ideological and social ideas that allowed this report to be taken seriously at all, which it would not have 30 years ago (despite the fact that our economy has supposedly "grown" so much in the meantime).
They have helped in every meaningful way to manufacture the world that created Don Drummond.
..txs m. spector
http://www.theglobeandmail.com/news/national/british-columbia/gary_mason...
This is a comment on a forum. since the link doesn't take one directly to this message I am quoting the whole comment:
"Mou110:51 PM on February 25, 2012
I really wish that media pay more attention to the size of Ontario Public Service and whether it is producing value for the money that it spends on wages and if not why not.
If Ontario had spent its resources adequately, many problems that we have right now wouldn’t have existed and we wouldn’t have needed to spend as much money now to resolve problems in Ontario.
Most of the cost of services is wages however the Ontario Public Service has not been producing value for the wages that it has been paying.
Most of their management do not have training for management and there is also this culture of hiring their friends.
The are supposed to be hiring employees with right skills to deliver services to Ontarians however instead ,a lot of hiring is about who they want to hire and not about what skills needed to provide the right services to the Ontario public. Result of hiring employees for their closeness to management and not for their qualifications is that these employees won’t have the skills to serve the public instead resources of Ontario public is used to provide jobs for the friends of SOMEBODY.
Ontario Public service is full of unqualified employees. If they start hiring qualified employees and replace the unqualified management then they can produce much more than what they are producing presently with the current resources and they wouldn’t need as much resources for what they are producing currently. There have been extensive focus on EHealth and Ornge and how a group of people have misused the public fund in these organizations. Isn’t using public fund to give your friends jobs that they are not qualified for a form of misuse of public fund? If in average the wages and other cost of each employee who is hired this way add up to 130K a year/employee and then multiply that with number of people hired without qualifications then what would this add up to each year, it would be a big chunk of public money each year. I wonder why media is not paying attention to hiring at OPS. There are big stories to bring to the attention of Ontarians.
I think changes are needed but most of current management are not equipped to plan and implement changes. Ontario Pubic Service would need to replace a large number of its management."
I mistrust rich people telling the rest of us to be austere, when everyone knows they don't pay their own way, like former TD bank economists. Some might think this is argument is about the man, and yes, it is. We have good reason to believe people like Drummond are motivated by riches and unfettered transfers of wealth from the poor to the rich - they are bank employees. So when they make suggestions for the rest of us to accept austerity, it is surely to make them and their colleagues wealthy - we have reason to be skeptical.
I mistrust rich people telling the rest of us to be austere, when everyone knows they don't pay their own way.
Amen! Though for your word rich, I would substitute the word richer. For example, I mistrusted working-class stiffs who voted for Mike Harris' Common Sense Revolution, which targetted welfare moms. Those richer folk didn't realize that their own ox was being gored. What's to be done about that, eh?!
I dunno about that crowd Grandpa_Bill - I don't know how to heal what ails them, except perhaps through education. My experience is that some elements of society will discard the weaker members in times of stress, probably because they'll put up less of a fight - like single moms, the disabled, etc. I remember those Harris years and they were awful.
I guess I'd tell the working class guy, that tory means robber. And what they do is, they take from the public purse, don't like to pay taxes and generally represent the interests of the elite, the rich, people who make money with their money, and don't have to work for it. The problem is, an entrenched discussant won't abide my remarks. Teachers will tell you that there are some students that just don't want to learn. So I'd keep my response pithy and not waste time on the foolish. If you have a lot of foolish people going out to the polls, then fill up your car with New Democrats and take them to the polling station to offset the march of the clowns.
http://campaignstops.blogs.nytimes.com/2012/02/19/is-this-the-end-of-mar...
My experience is that some elements of society will discard the weaker members in times of stress, probably because they'll put up less of a fight - like single moms, the disabled, etc. I remember those Harris years and they were awful.
I disagree. All you need to do is look at the history of the Ontario Coalition Against Poverty (as just one example) to see that's not the case. Marginalized groups become targets and scapegoats, not because they won't fight back, but because the rich know that, by and large, people outside of those targetted groups won't join that fight in any meaningful way.
My experience is that some elements of society will discard the weaker members in times of stress, probably because they'll put up less of a fight - like single moms, the disabled, etc. I remember those Harris years and they were awful.
I disagree. All you need to do is look at the history of the Ontario Coalition Against Poverty (as just one example) to see that's not the case. Marginalized groups become targets and scapegoats, not because they won't fight back, but because the rich know that, by and large, people outside of those targetted groups won't join that fight in any meaningful way.
Freedom_55, I didn't say they wouldn't fight. I said they put up 'less of a fight'. And their weakness, with or without OCAP, is why they are picked on. So you can add OCAP into the equation but it only muddies the waters. Ultimately even OCAPs presence wasn't enough to stop treating the disabled or single moms as scapegoats.
Regarding the class struggle...I submit that marching around isn't a fight unless it impacts the rich economically, therefore closing a port, in my view, that is called a real 'fight'. Marching is nice, but it's a form of education, and you can't educate people who don't want to learn. Further, you can't learn from someone you don't respect. Therefore, the rich are not going to learn from either single moms, the disabled, or OCAP, because the rich don't respect them.
You can see the roots of this stuff in Germany in the 30's and 40's. I would even extend myself and say, that 'only' people who are perceived as weak are attacked. Look at unions right now - everyone is trying to hold their head above water...why? Because the ruling class, the elite, view unions as weak right now - and the general public does too. That's why you are going to see more of it, unless, and this may play into your point Freedom_55, unless they can get their acts together for a 'general' strike.
To get the rich to respect your case, you just gotta make them fear your power. A general strike, or job actions, or massive numbers of people will all meet that requirement.
Freedom_55, I didn't say they wouldn't fight. I said they put up 'less of a fight'. And their weakness, with or without OCAP, is why they are picked on.
I understood your comment, I just disagreed with it. If someone has fought harder against the austerity regimes of Harris/Eves/McGuinty than First Nations groups, the poor, and disabled, I'm not sure who that would be. And it's not about being 'weak'. It's about being marginalized by the rest of society.
Regarding the class struggle...I submit that marching around isn't a fight
Quoted for truth.
And it's not about being 'weak'. It's about being marginalized by the rest of society.
It is about the language most suitable to describe the conflict.
Perhaps so as to not quibble, we could agree that tories generally pick 'low lying fruit'?
I mistrust rich people telling the rest of us to be austere, when everyone knows they don't pay their own way, like former TD bank economists.
I'm quoting RI again. His comment didn't focus on who was or wasn't weak or who did or didn't fight. It focused on whom we ought trust.
This is what strikes me: If all of us commenting on this thread (and some other threads that I have been reading) trusted one another, we wouldn't be dealing with each other abusively. So, in my mind, these questions arise: Why don't we trust one another? How and when did this mistrust come about? Who gains from our mistrust? What can we do about it?
What's your real motive for asking all these questions?
As Bay St. profits from Western energy plays, Eastern manufacturing positions have become increasingly untenable, so we're told. As Ontario attempts to hold expenditures to less than 3%, revenues are contracting while health care costs (which account for more than 40% of the budget, and increasing as a percentage) expand by more than double that rate. Basic math dictates that revenues need to increase, or program spending needs to be reduced. So, what are the priorities in terms of program spending? Will Ontario now have to compete with other 'have not' Provinces for revenue transfers, in order to maintain services at current levels? Ontario needs a plan to address this fiscal imbalance.
Ontario needs a plan to address this fiscal imbalance.
Sure. And what is our plan for moving the Province in that direction? Between now and the next provincial election, what's to be done by us to move forward the notion that, as you say, revenues need to increase?
What's your real motive for asking all these questions?
In a column here, Nicholas Kristof had this to say about the (somewhat) sorry state of journalism in USA:
Look, as a journalist, I'm proud of my profession. Yet it's also clear that commercial pressures are driving some news organizations, television in particular, to drop the ball. Instead of covering Congo, it's cheaper and easier to put a Democrat and a Republican in a studio and have them yell at each other.
My real motive: a safer site for injecting progressive comments in discussions.
Why is there any need for abuse in these threads? Beats me!
Maybe it's because what rabble does is the same thing Kristol talks about. Rabble can get all kinds of free content by hosting a forum and having people of different political persuasions "yell at each other".
The progressive comments have to fight to be heard like every other comment. It doesn't get any "safer" on the internet than that, I'm afraid.
Maybe it's because what rabble does is the same thing Kristol talks about. Rabble can get all kinds of free content by hosting a forum and having people of different political persuasions "yell at each other".
The progressive comments have to fight to be heard like every other comment. It doesn't get any "safer" on the internet than that, I'm afraid.
There are people of different political persuasions here? Talk about the narcissism of small differences...
Ontario Health Coalition
Save Public Medicare!
Urgent Issue Brief
Reaction to Government Health Funding Announcement Today
The McGuinty government announced $222.5 million targeted to its five wait times priority areas today.
Their release states that the $222.5 million announced today will result in 154,000 more procedures, including:
- 9,000 more hip and knee joint replacements
- 25, 850 more cataract surgeries
- 105,200 more MRI exams
- 4,700 cancer surgeries
- 9,000 more cardiac procedures
This is a sizeable increase and will make a difference. We are pleased this funding is going into the public non-profit health system to improve access to care.
The issues of concern are:
1) The government is obligated to provide comprehensive medically necessary care, not a short list of targeted items. In Britain, where the Blair government has already experimented with this type of targeting, doctors complained that the targeting resulted in shifts of resources away from clinical priorities to target priorities. While this works for PR, it does not work for all patients. See: for British docs on targets - http://www.bma.org.uk/ap.nsf/Content/measureper for public commentary -- http://observer.guardian.co.uk/nhs/story/0,1480,706309,00.html http://observer.guardian.co.uk/business/story/0,6903,1363708,00.html
2) Wait times cannot be settled without a clear human resources plan and funding to deal with shortages of health professionals, nurses, doctors and others.
3) We are extremely concerned about the price-based competition (competitive bidding) that is being used in the government's wait time strategy. Hospitals that bid under a certain price levels are to get the funding for procedures while hospitals that do not bid under this price levels do not. This competitive bidding removes services from local communities and centralizes them in regional centres. Patients pay by having to travel further for services and the administrative costs of the system increase dramatically. (One of the chief differences in costs between Canadian and US hospitals is that Canadian hospitals have lower administration costs, not having all of the inefficient pricing requirements etc. of the private market. In the UK, administrative costs shot up after this competitive bidding was introduced).
4) Hospitals across the province are cutting services and laying off staff in an attempt to balance their budgets. It would be more possible to get a whole picture of the results of targeting and reducing the scope of services in hospitals if the Accountability Agreements signed between the provincial government and our hospitals were to be made public. So far they are secret.
http://www.web.net/~ohc/GovtAnnouncement28April2006.htm
http://www.web.net/ohc/
There are people of different political persuasions here? Talk about the narcissism of small differences...
Did you think my disagreements with you were purely personal?
There are people of different political persuasions here? Talk about the narcissism of small differences...
Did you think my disagreements with you were purely personal?
No, M. Spector - my point was that babble Policy (and the wrath of Mods) pretty much enforce an orthodoxy here. So long as we understand that babble is a walled garden, no problem.
You make it sound as if we all sit around here agreeing with each other.
There are people of different political persuasions here? Talk about the narcissism of small differences...
Did you think my disagreements with you were purely personal?
No, M. Spector - my point was that babble Policy (and the wrath of Mods) pretty much enforce an orthodoxy here. So long as we understand that babble is a walled garden, no problem.
A recent column "The trouble with the 99 per cent" by Michael Laxer makes ygtbk's point. Laxer states the theory of the 99 percent slogan as follows
"We are the 99 percent. We are getting kicked out of our homes. We are forced to choose between groceries and rent. We are denied quality medical care. We are suffering from environmental pollution. We are working long hours for little pay and no rights, if we're working at all. We are getting nothing while the other 1 percent is getting everything. We are the 99 percent."
Laxer then lays out was he says is (or ought to be) the party line here inside the garden wall:
"With a variety of small or minor variations, this became the [Occupy Wall Street] movement's primary ideological message.
But the message is largely false. And this matters, especially in the long run.
"There is no question about the grotesque growth of social inequality in the West. That this obvious fact has been ignored and even reinforced by the austerity agendas of all governments, regardless of political stripe, plays into an overall sense of hopelessness and reinforces reductionist and absolutist, totalizing ideologies and political views. The inherent danger when democracy becomes seemingly impotent.
"The trouble, however, lies in understanding that undue corporate power and the rise of a new "Gilded Age" ultra-rich power elite does not mean that all of society, the media, politicians, governments, the courts, etc ... are beholden to this elite. More importantly, nor does it mean that the "99 per cent" share common interests and that they can work together, in any meaningful sense, to rectify the problems as raised.
"It also does not take into account the basically dangerous aspect to a worldview like this, which is both disingenuous and bourgeois in its desire to eclipse real issues of class, management, Social Mandarins, and the true underpinning of inequality with a slogan that appears to embrace "everyone," in the classic American way. By doing so it in fact embraces and lets off the hook many, if not most, of the basic enemies of working-class and socialist or anti-capitalist politics."
As I read it, Laxer's motive in all of this is Purge and Purify.
There are people of different political persuasions here? Talk about the narcissism of small differences...
Did you think my disagreements with you were purely personal?
No, M. Spector - my point was that babble Policy (and the wrath of Mods) pretty much enforce an orthodoxy here. So long as we understand that babble is a walled garden, no problem.
This is an interesting conversation--and amusing, too, as in narcissism of small differences!
In a recent column "The trouble with the 99 per cent," Michael Laxer states the theory of the 99 percent slogan as follows:
"We are the 99 percent. We are getting kicked out of our homes. We are forced to choose between groceries and rent. We are denied quality medical care. We are suffering from environmental pollution. We are working long hours for little pay and no rights, if we're working at all. We are getting nothing while the other 1 percent is getting everything. We are the 99 percent."
Laxer then lays out what he says is (or ought to be) the party line here inside the garden wall about the Occupy Wall Street movement:
"With a variety of small or minor variations, this became the [Occupy Wall Street] movement's primary ideological message.
"But the message is largely false. And this matters, especially in the long run.
"There is no question about the grotesque growth of social inequality in the West. That this obvious fact has been ignored and even reinforced by the austerity agendas of all governments, regardless of political stripe, plays into an overall sense of hopelessness and reinforces reductionist and absolutist, totalizing ideologies and political views. The inherent danger when democracy becomes seemingly impotent.
"The trouble, however, lies in understanding that undue corporate power and the rise of a new "Gilded Age" ultra-rich power elite does not mean that all of society, the media, politicians, governments, the courts, etc ... are beholden to this elite. More importantly, nor does it mean that the "99 per cent" share common interests and that they can work together, in any meaningful sense, to rectify the problems as raised. (emphasis GB)
"It also does not take into account the basically dangerous aspect to a worldview like this, which is both disingenuous and bourgeois in its desire to eclipse real issues of class, management, Social Mandarins, and the true underpinning of inequality with a slogan that appears to embrace "everyone," in the classic American way. By doing so it in fact embraces and lets off the hook many, if not most, of the basic enemies of working-class and socialist or anti-capitalist politics."
As I read it, Laxer's message to us is Purge and Purify. He, for one, thinks there is not quite enough orthodoxy inside the garden.
Nonsense.
What Laxer is saying is that the 99% is not a homogeneous, monolithic social stratum, pitted against a tiny minority "enemy". There are reactionary forces within the 99% that help to preserve and carry out the rule of the 1%, and whose material interests are therefore inextricably bound up with it.
I would have thought this was apparent to everyone — that the "99% v. 1%" dichotomy was an exaggeration for rhetorical and sloganeering purposes, but that it doesn't really correspond to the actual power structures and distribution of wealth in advanced capitalist societies. Laxer is correct that this dichotomy is false. The 99% are not all allies, and it is foolish to pretend that they are. Moreover, it glosses over and obscures real class differences.
It's not about enforcing orthodoxy at all. It's about understanding the class nature of society and knowing who your allies are and who they aren't.
knowing who your allies are and who they aren't.
this continues to be a critical developmental task for many Canadians - especially 'who they aren't'..
Unsurprisingly, Ontario is now backing off previously-scheduled corporate tax cuts: see:
http://www.theglobeandmail.com/report-on-business/economy/ontario-may-ha...
This will not be enough to close a $16 billion gap: CUPE has estimated that taking corporate tax rates back up to 14% would raise about $2.5 billion per year: see:
http://cupe.ca/economics/austerity-doesnt-work-ontario-balance
So it will be a challenge for the Ontario budget (due later this month) to show balance by 2017-2018, McGuinty's stated target.
Nonsense.
What Laxer is saying is . . .
It's not about enforcing orthodoxy at all. It's about understanding the class nature of society and knowing who your allies are and who they aren't.
I appreciate your response and will say, at the outset, that what I wrote may well be nonsense. Let me, however, say what I know, beginning with an acknowledgment that my comment is not as clear as it might be.
Seems to me that Laxer is doing several things, two of which you point out:
(1) giving us his understanding of the class nature of society;
(2) telling us who our allies are and who they aren't.
Further, I believe that he is quite clearly cautioning us not to have anything to do . . . them! What follows is the sentence in Laxer's column that I highlighted for emphasis:
More importantly, nor does it mean that the "99 per cent" share common interests and that they can work together, in any meaningful sense, to rectify the problems as raised. (emphasis GB)
I heard a similar caution 40 years ago on a warm summer evening in a Toronto apartment at a social event of the North York Waffle. The words "Purge and Purify" were spoken as part of that caution. They were said (and you will I hope accept my opinion on this matter) with the intent of enforcing orthodoxy.
The intent of Michael Laxer's caution is the same as that caution given those many years ago: Don't have anything to do with them. It is enlightening to learn that people take that caution seriously even today. There is nothing inappropriate with his giving such a caution; nor is there anything inappropriate in my rejecting it, which I happily do.
So, YES, we speak in a walled garden. And though some of us are not entirely thrilled with the presence of (to say nothing of the remarks of) others of us, we can shoulder on together, if we choose to do so. Those of us who choose otherwise resort, on occasion, to abuse, which was the subject of my previous comment. A pity.
Sounds to me like you're just grinding an axe here.
Who are you referring to by "them"? The 99%?
I see nothing wrong with that statement. Do you think that all those below the 99th income percentile share common interests and can work together in any meaningful sense to rectify the problems as raised? If so, you should have paid more attention at those Waffle meetings.
Some historians put their numbers at anywhere from a few thousand to a few million who will remain rabidly loyal to the regime even after their overthrow by the majority. They are the next group in the hierarchical power structure who benefit by the autocracy and will defend it at all cost and to the bitter end.
CFL