There was a time for us that trickle-down economics and tax cuts were great concepts we readily promoted. Early in our career here, a guy by the name of Mike Harris was making the rounds, and we thought government in general would improve under his leadership.
Call it the times, call it youthful enthusiasm, or even naïve optimism – the aftermath of those times leaves us skeptical, and on bad days, feeling a bit cheated, misled even.
While we firmly believe the province’s finances and approach to service delivery was in need of a shake-up, there was collateral damage far beyond our imagination.
Financially, one need only speak with local politicians to understand the problems caused. Heck, look at a personal property tax bill to see the effects of the tax shuffle. The point that bothers us the most, however, is the distrust and distaste bred into the minds of common folk.
Many institutions that were at one time cherished and admired were debased during Harris’ time. We think of members of the teaching community, and government employees from crown agencies. We also look at municipal politicians and employees who were forced to accommodate strategies from Queen’s Park to help the province balance its books.
We remember the phrase “tax cuts” well and recall there was no reference to what was to come.
For proof, we point to the continuing increases of the county levy in Wellington. Sources tell us the levy will need to increase 5% each year of the new five-year plan to accommodate present needs. While part of that deals with capital improvements to better the lives of residents, there remains an influence from the downloading exercise years ago. Local townships intent on actually keeping up with the times have similar anecdotal evidence.
So, what has Mike Harris got to do with today?
Currently in Ottawa we have a minority government led by Stephen Harper, who seems intent on pushing the boundaries and sensibilities of the House on many points.
Inside the offices of the present Conservative strategists are hangers-on from the Harris era. Many refer to them as back room boys; however history shows us men and women have had the ear of Harris and many defining moments resulted from those advisors – Ontario Hydro’s breakup being a prime example. Now, back to Ottawa.
Announcements by Prime Minister Harper’s Minister of Finance Jim Flaherty, a former provincial star in Harris’ day, sang a tune we have all heard before. Tax cuts – personal and consumption tax decreases – he claims will forge a new kind of personal prosperity in our country. The timing of those announcements fell nearly one year to the day after laying the groundwork to abolish income trusts.
While a bit off topic, it also happens to fall in line with a recent survey stating that most middle income earners have no real burning interest for a special Christmas gift this year because they are content.
Clearly the tax reductions honour campaign promises made and fulfill a dogmatic belief that trickle-down economics actually work. We do not entirely dismiss thriftiness or keeping a lid on escalating tax costs or the premise that more dollars in the hands of Canadians feeds the economy. Canada is in the enviable position of good times, a surging dollar, and ample resources to see good times continue for some time.
While we agree with Minister Flaherty that each level of government has its own role to play in terms of funding, there are many opportunities that should be explored. Resources should be directed in the field of mass transit, and green initiatives should be implemented to take the heat off precious non-renewable resources. A comprehensive plan is needed to address escalating real estate costs by building affordable housing. Brownfield redevelopment is another area where all urban areas across the country would benefit from a national program to see waste land renewed.
There is little surprise that those programs are not on the federal radar. To this day there is no strong candidate able to articulate a vision that people will embrace. Apart from getting elected and staying elected, we question the vision of Canada’s self-styled “new” government.
It would appear Canadians are prepared to be bought with their own money again – and Ottawa is prepared to deliver.
