Thursday, March 20, 2008

Flaherty vs Duncan

As someone who has been trying to raise some public awareness of corporate taxation, I obviously cannot agree with those who think that the federal Finance Minister should be raising this issue with his Ontario counterpart behind closed doors.

Flaherty's position, in a context of his own choosing and in writing, is available here.

This stuff isn't coming from Flaherty's own insight. He's getting it from Finance Dept memos and the key point to note here is that the Ontario government should be getting it from their own civil servants (although the fact that Ontario Finance Minister Dwight Duncan could be so bold as to state that Flaherty is "absolutely wrong" and declare that "[t]he old mantra that tax cuts create jobs doesn't [work]" does create some doubt about what, if anything, Finance Ontario is advising). It follows that it is not the Ontario government that needs to be educated but the voters of Ontario.

Now before anyone objects at how arrogant that sounds, let me be the first to admit my own ignorance of a key point. I've been critical of the federal Tories' 2% GST cut when they could have instead cut taxes on business and investment more. But my criticism there was relatively misplaced given that what the Ontario Liberals are doing is far more egregious. I now understand that Ontario's 8% PST is not, in fact, a value added tax. It applies to business inputs such that even the Toronto Star concedes that 40% of Ontario's retail sales tax revenue comes from business. It follows that Ontario's corporate rate alone does not tell anything like the whole story in terms of production costs and disincentives to investment. The Atlantic provinces (other than PEI) moved to a VAT in 1997 and a C.D. Howe study showed that in the following years annual investment in machinery and equipment there rose 12% above historic trend levels. Finance Canada says that "Harmonizing with the GST is the single most important action that these [harmonization resistant provinces] could take to improve their provincial and Canada’s overall tax competitiveness." Who's standing in the way of this? Dalton McGuinty and Dwight Duncan (although, in fairness, Ed "raise royalties" Stelmach isn't exactly welcoming business either).

Duncan hopes federal Finance Minister Jim Flaherty will aid Ontario by matching the province's $1.15 billion Next Generation Jobs Fund to keep and create manufacturing jobs here.
Despite the federal Conservatives' ideological aversion to what is often derided as "corporate welfare," Duncan says governments have to work with industry.
"My advice would be, "Pony up on this," [says Duncan].
- Toronto Star

This public "pony up" advice comes to you from a finance minister who elsewhere insists that a finance minister should evidently only advise another level of government in private.

2 comments:

Ron Payne said...

WHO IS REALLY COMMITTING THE FRAUD AROUND HERE

The general public has no idea what the system is really like. They think fraud is ramped in Ontario Works and ODSP. Here is something to think about and it is just the tip of the iceberg according to our research.
The provincial government says welfare fraud is around 2%.
Who is really committing the fraud around here?
The federal government says income tax fraud is 13%

Ontario Works staff charged in $1.3million Fraud
By Sarah Elizabeth Brown Tuesday March 4,2008
Chronicle Journal http://tbay.ok.bc.ca/stories.php?id=95704

Government ODSP worker charged in $585,000 fraud case.
By SooToday.com Staff Wednesday, November 14, 2007
SooToday
http://www.sootoday.com/content/news/full_story.asp?StoryNumber=28485
http://odsp.blogspot.com/2007/11/former-government-worker-charged-in.html

93.7 million dollars in corporate welfare
Linda Leatherdale March 7,2008
http://money.canoe.ca/Columnists/Leatherdale/2008/03/07/4938021-sun.html
http://theoldcraftsman.com/blog/?p=387#comment-174
Premier Dalton McGuity is handing over a 9.7 million dollar corporate welfare cheque to Kellogg. Kellogg’s profit was $1 billion. Also Ford got a $55 million cheque and is now cutting shifts, while GM got $29million and is also cutting shifts.

$150 million called corporate welfare for a profitable industry.
Rob Ferguson January 10, 2008
Queens Park Bureau http://www.thestar.com/Business/article/292631
The Ontario Government has earmarked $150 million to encourage pharmaceutical companies to do more drug research and manufacturing in the province.

Ron Payne
Welfare Legal
Hamilton, Ontario
E-mail welfarelegal2004@hotmail.com

Ron Payne said...

Media Release

The Evidence Is In

Poverty’s Smoke and Mirrors, Part 2

To see part 1 http://www.special-need-child-canada.com/povertys-smoke-and-mirrors.html

The article above went out to the main media and approximately 65 other print news media starting September 21 2008. It was also put on the World Wide Web.

To my knowledge it was only printed in 3 Ontario news papers in the Letters to the Editor section.
1) Hamilton’s, Mountain News
2) Hamilton’s, Stoney Creek News
3) London’s, The London Free Press

Thank you to these three papers for caring enough about people that live in poverty to print this article.

As of today November 06 2008 the Ontario government has only posted old outdated directives dated Sept 2001.
http://www.mcss.gov.on.ca/mcss/english/pillars/social/directives/ow_policy_directives.html

Obviously these directives are of no use to anyone simply because of the fact they are outdated and the ministry is now using the July 2008 up to date directives but has not shared them with the public.

You may remember Welfare Legal was so offended by this abuse we offered $100.00 to anyone that could produce a copy of the latest Ontario Works directive 7.4.

As of this date no one has collected the $100.00. Welfare Legal now has a copy of the new directives that the government has not shared.

We take the position that this is the most serious kind of abuse by our government to implement new policies but not allow those most in need to have access to them. The only reason the government has given for this abuse is that the Ontario Government has not prepared a French version of these directives.

This is a Human Rights violation, among others, to implement a secrete version of the directives and not share them with the public and not to have a French version available.

As we have stated before the Ontario government has in fact been cutting the benefits of Ontario Works, (OW) and the Ontario Disability Support Program, (ODSP) recipients without letting the general public aware of these cuts.

The latest cuts that have become public are the cuts to benefits to grandparents that are caring for their own grandchildren, who many had, have been apprehended by the Children’s Aid Society (CAS). The grand parent’s complaints were heard loud and clear the government seems to have withdrawn these policy changes.

The new directive 7.4 and others shows more cuts that the public is not aware of yet.

One of these cuts shows that the Ontario government no longer supports volunteering here in Ontario. In the old outdated directives dated September 2001, the government used to give a small benefit to those recipients that had to do volunteer work as a condition of eligibility for OW. These cuts also affect those who wish to do volunteer work and are disabled on ODSP as well.
Are volunteers no longer needed here in Ontario?

These cuts which are ongoing, have been made to help pay for the meager increases to OW and ODSP of 2%. They are also part of the government’s bigger plan, to upload the cost of OW and ODSP from the municipality to the province and to pay for its poverty reduction strategy.

At the end of the day the government will save millions of dollars in benefits that the former Mike Harris Tories said people on OW and ODSP were entitled to. Does this make sense to anyone?

This story gets much, much worse. It turns out that the aboriginal community in Ontario had the foresight not to allow its members to be subjected to the policies and procedures put in place by the Mike Harris government, when they bought the draconian computer program from Anderson Consulting now Accenture. The cost of that program was $400,000.00 and rising. This program was designed to cut people off of benefits automatically, with no human contact. There seems to be 2 classes of people being governed differently here, and what are the costs?

It would seem they were allowed to have their own computer program made up by a private company called AD Morrison.
http://www.admorrison.com/

A private professional researcher contacted Welfare Legal in an attempt to collect the $100.00 offered for the latest Ontario Works directive 7.4 and alerted us to a Pandora’s Box. You will see on the home page of AD Morrison’s site there is a link to “Latest Directives”. This link contained a third set of OW directives that was not available to the general public.

After Welfare Legal contacted the ministry to see if this in fact was the latest and new directive 7.4, the ministry contacted us with a reply that had nothing to do with our request. Then out of the blue this link was taken of the site.

After gathering all the evidence we soon learned that the Ontario government had not been keeping these new directive from the public since July 2008, they had in fact been hiding them starting in December 2005 and no one new about it. At least no one that has come forward so far.

There has been no response from any legal clinic or private paralegal in Ontario showing that they new about this breach of the Human Rights Code by our provincial government. If anyone was aware of this why didn’t they take it to the media? Does nobody care about this abuse? Does nobody care about eliminating poverty?

It is interesting to note that the government has even changed the directive numbers to confuse us even more once we were allowed to become aware of them.

September 2001 shows directive 31.0, the out dated benefits that we all are aware of.

December 2005 shows
7.3 is EMPLOYMENT AND PARTICIPATION BENEFITS
7.4 is COMMUNITY START UP AND MAINTENANCE BENEFIT

July 2008 shows
7.4 is EMPLOYMENT AND PARTICIPATION BENEFITS
7.5 is COMMUNITY START UP AND MAINTENANCE BENEFIT

For a copy of these directives
http://owcorruption.blogspot.com/

How can the Ontario government say it is attempting to alleviate poverty when it is secretly cutting the benefits of those most in need? (Reverse Robin Hood)

Ron Payne
Welfare Legal
Hamilton, Ontario
Phone 905-253-0205
E-mail welfarelegal2004@hotmail.com
Blog http://welfarelegal.blogspot.com/