Cramahe Now

April 5th, 2009

I thank you for taking the time to contact my office and share your views on the budget. I received calls before and after Budget 2009 was presented and I appreciate the opportunity to respond to your concerns.

Firstly let me say that I think it is important and healthy to hear from my constituents it helps with the work I do on your behalf.

During a recession, business competitiveness and economic renewal are extremely important. Given the stark reality of the current economic situation the province had little choice but to make tax reform a priority. “A single sales tax in combination with other tax reform measures including reduced corporate and personal tax cuts will put Ontario on a path towards increased competitiveness, productivity and economic recovery that will benefit every Ontario resident and every business operator in the province.” A quote from Mr. Len Crispino, president of the Ontario Chamber of Commerce. He went on to say “These are smart, but politically difficult choices, and are exactly the kind of leadership decisions we need to position us for recovery form these difficult economic times.

The income tax cuts along with the sales tax credits are both initiatives to help Ontarians while the single sales tax is implemented. Statistics show in other provinces that the single sales tax has brought savings to consumers in the first year and a further savings within 3 years.

You will find enclosed a copy of my press release which I hope you will take the time to read. To help families adjust to the new single sales tax we have made provision for more than $10.6 million in permanent tax relief and direct payments to families and individuals. This budget includes decreased income tax rates for 93 per cent of Ontario taxpayers.

You will also find enclosed the editorial from the Trentonian which provides their view of this budget. Other comments on the budget can also be found on the following sites: http://www.thepost.ca/ArticleDisplay.aspx?e=1502667

http://www.torontosun.com/comment/2009/03/30/8934631-sun.html


A recent C.D. Howe report that examined the effects of GST harmonization in the Atlantic Provinces found that the benefit to consumers can occur quickly, the majority of the savings passed through to consumers in the first year."

More Experts Agree: McGuinty Government Supporting Families and Businesses

Queen’s Park – Experts from all sectors agree that the Ontario Budget will support families today and strengthen businesses for tomorrow:

Roger Martin, Dean, Rotman School of Management, University of Toronto:
It's a budget for the ages

Hugh MacKenzie, Economist and Research Associate, Canadian Centre for Policy Alternatives:
Ontario's 2009-10 budget establishes the right direction for the next few years. It provides substantial economic stimulus. It is consistent with the new orthodoxy that relies heavily on governments to help rebuild damaged economies. It imposes some coherence on an incoherent federal plan. It increases support for low-income families and individuals. It modernizes Ontario's consumption tax.

Alexandre Laurin, Senior Policy Analyst, C.D. Howe Institute:
By harmonizing now, Ontario not only reaps a long-term gain, but may see a short-term boost as well.

Jack M. Mintz, Palmer Chair in Public Policy, School of Public Policy, University of Calgary:
Nonetheless, sales tax harmonization will reap large benefits to the Ontario economy. The McGuinty government will go down in history for its leadership in moving ahead with a major tax reform that will only help the Ontario economy in the long run.

Greg Pollock, President and CEO, Advocis:
The Open for Business initiative that commits to reducing red tape by 25% over the next two years is a positive move

Fred Gibbons, Vice-President, Timmins Chamber of Commerce:
I think this has been a good news budget for consumers and small businesses as well. The budget goes a long way to containing many items to position Ontario for an economic recovery…the keystone for business has been tax reform, especially the blending of GST and PST. We supported this as a chamber several months ago. Today's announcement is a step in the right direction to be a better and more attractive place for businesses to grow.

Nancy Frater, President, Canadian Book Sellers Association:
The Ontario government's move to a harmonized sales tax is good for small retailers and the exemption on books is good for consumers…this is a win for literacy and reading.

Mayor Tom Laughren, City of Timmins:
I give them nothing but kudos because it wasn't an easy task… To go into deficit, no government wants to do that. The history of the federal and provincial government is a balance or surplus. Looking at the times we're in, I think it's the right thing to go…

David Clegg, President, The Elementary Teachers' Federation of Ontario:
We applaud the fact that the government is increasing funding for elementary and secondary education at a time when the economy is faltering and student enrolment is declining

Margaret Eaton, President, ABC CANADA Literacy Foundation:
This is a landmark day for the literacy and basic skills cause in Ontario. The first time in over a decade that community literacy organizations have seen an increase and that workplace literacy has been funded in Ontario…ABC CANADA is committed to raising the importance of workers upgrading their reading, writing and math skills. We applaud the Government of Ontario and our literacy partners for delivering this major step forward. Today's news will provide the people of Ontario with a greater opportunity to train and upgrade their skills and education as they meet the demands of the new knowledge economy

Ken Lawenza, President, CAW:
Governments have a responsibility to boost spending during a recession, and this budget does that

Mary LaRocque, Peterborough Marlin Travel:
It's exactly what we were looking for…It was a very, very positive budget

Gilbert Heffern, Acting Executive Director, Ontario Long Term Care Association:
We understand and appreciate that the sector will receive some additional funding this year including toward the additional staffing commitments in last year's budget

John Davies, President, Humber College:
It's well recognized that particularly in this economic downturn colleges are really going to play an important part in terms of retraining… We're running towards a situation where we'll have at the same time, if we're not careful, people without jobs but also jobs without people…we're jammed so the infrastructure money will really help us

Gary Lipinksi, President, Métis Nation of Ontario:
I am especially pleased that the New Relationship Fund will continue to be available to us in future years so that we can continue the work we have already begun to increase consultation capacity in our communities…The Métis Nation of Ontario has already expressed its support for the proposed Green Energy Act. Including loan guarantees for Aboriginal participation in energy projects will help to ensure the Métis are partners in the plan to expedite the growth, transmission and distribution of renewable energy through sustainable economic development opportunities that align with Métis values as stewards of the land

Hugh Lawson, President, Ontario Non-Profit Housing Association:
This is an impressive amount of money being made available to the community-based affordable housing sector and we thank the government for this large investment…It represents a level of understanding that housing is an asset which plays a major role in helping people and shaping a strong economy.

After the Harris/Eves Conservative government era of closing hospitals, hacking and slashing services like health care and pitting teachers against school boards and school boards against parents in a turmoil education system where our kids lost far too many school days I decided to run as M.P.P. I wanted to make a difference and bring back services to this community. I believe that Northumberland-Quinte West is the most wonderful place to live work and play in this great province. Rural Ontarians right here in our community deserved a better education system for our kids and grandkids, better health care services for our seniors closer to home. I am proud of achieving that for you. I am proud to work with a government that has listened to our needs and delivered the much deserved services to the people of Northumberland-Quinte West. I will continue to advocate on your behalf to make sure this community continues to grow. Working together makes us all stronger and healthier.

I have taken note that you would like me to pass along your objection to the tax harmonizing and I will certainly share this view with Premier McGuinty and Finance Minister Duncan at our next Caucus meeting this week. If you would like me to discuss this further with you I would be most happy to give you a call if you provide your phone number to my assistant by return email.

Again, thank you for sharing your concerns and views with me.

Sincerely,



Lou Rinaldi, M.P.P.
Northumberland-Quinte West