Deja vu

“Liberals take axe to business taxes” –Star, Mar 27/09

It was just one year ago, March 25th, that the Star wrote about “Endless Ontario Bashing” in reference to Jim Flaherty’s criticism of Ontario’s business - unfriendly tax regime, and suggested we reduce corporate taxes and harmonize the sales tax. His suggestions were not well taken by McGuinty and his government, or by yours truly, who wrote a Letter to your Editor about the matter (March 26/08).

Yet, lo and behold, this budget does exactly what McGuinty rejected. What a difference a year makes! Flaherty must surely be gloating over this one, and McGuinty should be blushing.

As to harmonizing the PST with the GST, I can accept the arguments for this –except the way it has been done is convoluted, complex and confusing; with rebates etc., –typically a political rather than practical solution. A much better way would be to reduce the PST from 8% to, say, 6%. This would achieve the same goals, but in a simpler fashion, since by reducing the percentage of the tax, while still the government would be collecting new taxes (on goods & services not now taxed), the consumer would gain on other items now taxes at a lower rate.