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Thursday, February 9, 2012

We need more from Hudak

The Crux-of-the-Matter blog has an excellent post today titled, ON PC Leader Tim Hudak has to inspire—and soon! I like Sandy’s idea of not avoiding the Mike Harris record. The Common Sense Revolution was sound policy and good politics. We had too little of that in the last election.

Ontario PC leader Tim Hudak has allowed Premier Dalton McGuinty and his Grits to define and demonize him and the past record of the PC party.

Sandy Crux highlights some of the Harris record:

  • “The Ontario PCs ruled the Province of Ontario uninterrupted from 1943 to 1985—a total of 42 years.
  • “The Mike Harris Government did what had to be done. He reduced income taxes to 34% of the federal portion because they were at 58% under the NDP Rae Government (and are back to that level again).
  • “Between 1995 and 1999, some 700,000 jobs were created and approximately 100,000 people got off of welfare.”

It’s time to stop ducking our past. Starting this weekend at the party’s AGM at Niagara Falls, Mr. Hudak needs to get out front and preach a positive message of change while attacking the rotten record of McGuinty.

It’s informative, is it not, that we PCs lead in the polls between elections and blow the lead during the campaigns? Has Mr. Hudak learnt anything from this?

The last campaign was the worst I’ve seen by Ontario PCs, but then I’ve only been following Ontario elections since 1955. Perhaps there was a worse one before that.

© 2012 Russell G. Campbell

2 comments — This is a moderated blog and comments will appear when approved. Please don’t resubmit if your comment doesn’t appear immediately, and please do not post material that is obscene, harassing, defamatory, or otherwise objectionable.

  1. I thank Sandy in suggesting that Tim Hudak come up to Port Elgin and publically call out the McGuinty gov't and the CAW for erecting a wind turbine that will have the distinction of being the closest turbine to people IN THE WORLD.
    Rural Ont did it's job in booting out liberals in the last election and Hudak could cement this rural base for years to come if he decides to get some fire into his belly and destroy McGuinty on his catastrophic GEA at every turn.

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  2. “The Mike Harris Government did what had to be done. He reduced income taxes to 34% of the federal portion because they were at 58% under the NDP Rae Government (and are back to that level again)."

    I'm not sure this is entirely accurate. Have Ontario income tax rates gone up to 58% of the Federal rate (from 34% under Harris)? I tried looking into the matter here: http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-py-eng.html

    A number of years ago, Ontario began calculating income tax more directly (rather than as a percentage of the federal tax).

    In 1998, the Ontario tax was 42.75% of the Federal Tax.
    http://www.cra-arc.gc.ca/tx/ndvdls/fq/98_rt-eng.html#table2

    In 1999, it was 39.5%.
    http://www.cra-arc.gc.ca/tx/ndvdls/fq/99_rt-eng.html#table2

    After that, the Provincial income tax was calculated as a percentage of income, not as a percentage of the federal tax.

    In 2002, the rates were:
    6.05% on the first $31,893 of taxable income, +
    9.15% on the next $31,893, +
    11.16% on the amount over $63,786
    http://www.cra-arc.gc.ca/tx/ndvdls/fq/2002_rt-eng.html#provincial

    In 2003, the rates were more or less unchanged:
    6.05% on the first $32,435 of taxable income, +
    9.15% on the next $32,436, +
    11.16% on the amount over $64,871
    http://www.cra-arc.gc.ca/tx/ndvdls/fq/2003_rt-eng.html#provincial

    McGuinty was elected in October of 2003. Since then the income tax rates have stayed fairly stable, and are even slightly lower than they were before.

    The rates for 2012 are slightly lower.
    5.05% on the first $39,020 of taxable income, +
    9.15% on the next $39,023, +
    11.16% on the amount over $78,043
    http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html#provincial

    I'm not able to substantiate the claim that rates are back up to where they were under Rae (58% of the federal tax). In part this is because the way of calculating is different. But if we take the highest marginal rate in each case in 2012 (29% federally and 11.16% provincially) it looks like the highest marginal rate in Ontario is 38.48% of the federal rate (11.16/29*100=38.48%). For most people, the final rate would be lower (since I'm assuming that all income is taxed at the highest rate, though it isn't). But even if we assume that the higher rate applies to all income, the rate is nowhere near 58%.

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