My Point of View: Maybe the HST will help Ontario pay down debt.

You’ve heard it from politicians: The market economy will save us. No new taxes.

You’ve heard it from economists: Lower taxes and the economy will surge and debts will vanish.

You’ve heard it from me: The federal government grows debt 80 per cent of the time, e.g., from 1960 to 2014, including forecasted budgets. Our provincial government grows debt 67 per cent of the time, e.g., from 1985 - 2012, including forecasted budgets.

And though Ontario’s revenue plunged and costs soared in the recession Ontario Finance Minister Dwight Duncan is on record saying there will be no new taxes in the next budget even though the government is looking at all options to help pay down an unprecedented $25 billion deficit.


["Try to save money to help pay down personal and provincial debt - you own them both"]

Of course, we know that on July 1, 2010 the Harmonized Sales Tax will begin.

Perhaps we’ll see a link between our consumption and the lowering of provincial debt in the next year or two and the HST won’t be the ‘hated sales tax’ in as many minds.

I predict we may see a rise in personal and corporate income taxes in the next few years as governments realize the economy (especially a faltering one) is not be the only answer to digging ourselves out of a very deep hole and paving the way to a more sustainable future.

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Should governments call taxes by prettier names, e.g., ‘lovely revenue streams’ in order to disguise the fact we need to pay our way?

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