By Kevin Bernard
Well as predicted, Ontario is headed into deficit... BIG TIME.
The Ontario Budget from Finance Minister Dwight Duncan calls for 27 billion dollars to be spent on infrastructure over the next 2 years, with money going to
roads, schools and hospitals.
In total, the deficit will climb to 56 billion dollars by 2015.
There are some positives in the document, income tax rates are being trimmed for low-income earners, will be increased funding in child benefits, and some cuts to corporate taxes.
However most of the changes don't happen until next year.
The biggest change will be the Harmonization of PST and GST into one -- 13 per cent sales tax, starting next year.
Finance Minister Dwight Duncan says it will help businesses by streamlining the taxes they collect.
The Ontario Liberals plan on helping us over this tax hump by providing 1 thousand dollars to taxpayers in the first year of the new blended tax.
What's the reaction of the Opposition, well Bill Murdoch says it's like hearing a Bob Rae budget.
It's not TRILLIONS OF DOLLARS, like the U.S. is spending.
However Bill Murdoch is right about one thing, we will have to pay for all this ... somewhere down the road.
Let's hope all this freewheeling spending in North America doesn't lead to Hyper-inflation in 2 or 3 years time.
From where I sit, that would be worse than the mess we are already in. I'm Kevin Bernard.