Alternative fiscal paths for the 2019 budget
The Progressive Conservatives are using financial fearmongering as a cover for cutting funding for public services. This paper outlines two alternative fiscal paths that maintain and enhance services while reducing Ontario’s deficit and debt-to-GDP ratio. Both alternative budget proposals increase annual spending by the 3.5% necessary to maintain service levels, and top this up by $2.4 billion in 2019-20, rising to $3.8 billion by 2022-23, for service enhancements approved in the 2018 Ontario budget. These budgetary increases, which would significantly benefit Ontarians, could be paid for through reversing the Progressive Conservatives tax cuts, increased corporate tax rates, and either an increase in the personal income tax rate or the HST rate. Detailed model calculations are presented.
