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Ontario Budget 2012 - Austerity?
Cuts? Not so deep really, they should have been different cuts, but the Liberals just don't get it yet.
The Ontario Budget released March 27, 2012, mostly affected the one million or so public sector workers in Ontario's government. Thats a lot of voters and their families to antagonize, and believe me they are voters.
All the public sector unions are gearing up for the election battle to come. It may not be for a year or so, but it will happen sooner than later.
For the public sector employees, the Liberal budget has frozen salaries, grid moves, pensions and these things are definitely going to happen, for sure, because they said so.....or else.
The Ontario PC's have already decided they will not support the budget. I'm not certain why, the budget calls for less spending than the PC's wanted in the recent election. So it sort of looks like a start toward fiscal sanity, maybe.
That puts the ball in the court of the NDP, who seem to be non-commital, they will let the people decide. Right. You may have your say by contacting the NDP, and giving them an earful. It's a good publicity ploy anyway. Some time next week they will say: "you know, nobody really wants another election." They will hold their noses and vote with the Liberals to pass this thing, OR maybe just "sick out" a few MPP's (just three sickies are required I think). But they need to somehow court the public sector unions for the inevitable election fight. I'll let them worry on that.
Meanwhile the Liberals will keep their pet projects, all day kindergarten, subsidized but GREEN power generation, build more and larger LCBO stores to better monopolize the market for booze, and they are getting deeper into the gaming industry.
These are effectively additional taxes. Why? Because many people drink liquor, beer or wine, and the markup is high because the government has a monopoly. Think of it like a tax on bad habits.
Similarly, more casinos in more populated parts of the province will fleece the gamblers, increasing the odds of taxing the stupid. I will include myself in that group, because I do buy the odd lottery ticket, really stupid.
This neat little graphic at the Globe & Mail, shows how the deficit will deplete (they hope), and how the cuts help the decrease and the added revenues help too.
The video below it, represents my 5 minute response to this budget.