NDP leader and local MPP Howard Hampton is calling the Liberal government’s first budget yesterday “one of the most regressive revenue grabs in Ontario’s history,” citing the return of OHIP premiums and the de-listing of health care services.
“The worst aspect of this budget is that it increases taxes by $3 billion a year, and those increases are all aimed at modest- and middle-income people,” Hampton said in a telephone interview late yesterday afternoon.
The Liberals will implement a health premium that will be collected through income tax beginning July 1.
People earning less than $20,000 will no pay a premium. Those with an annual income from $20,000-$36,000 will pay $300 a year while at the top of the list, those who earn more than $200,000 will pay $900 a year.
That means people in the top income bracket, who earn at least five times more in annual income than people in the lowest bracket, will pay only three times more in premiums.
“It’s terribly-balanced,” Hampton said. “They’re the people who can afford to make contributions.”
In addition to the premiums, the government also has de-listed physiotherapy, chiropractic, and optometry services.
(Physiotherapy will be covered for seniors who receive it through home care and long-term care facilities while optometry exams will be covered for seniors and Ontarians under 20 years of age).
Hampton estimated the de-listing of these services will cost Ontarians $157 million.
Other fees, like driver’s licences and small claims court, will increase, and hydro bills will rise across the province by $300 million a year to pay for the $3.9 billion hydro debt.
“Almost all their fee increases . . . are going to hit modest- and low-income people,” Hampton argued. “I expect a lot of people won’t be able to afford the new fees.”
Meanwhile, budgets have been frozen or cut in 15 ministries, including the Ministry of Natural Resources, Northern Affairs and Mines, Tourism, and Recreation and Culture.
The MNR’s budget has been cut by $13 million, Hampton said, and the MNDM’s by $6 million.
Earlier this month, Hampton attended a public meeting in Fort Frances to listen to people’s concerns about funding for child care. He said the Liberal budget will do little to assuage people’s fears.
“They’re taking the $58 million the federal government is making available and handing it over to the municipalities. But there is no provincial money for child care,” he charged.
That $58 million comes from Ottawa’s Multilateral Agreement on Child Care.
The feds also are expected to hand over $187 million to Ontario through the Early Childhood Development Initiative this year, but no mention of that money was made in yesterday’s budget.
“They’re not even turning over all the federal money,” Hampton said. “It’s going to really hurt child care in places like Fort Frances and Kenora.
“At the end of the day, what this budget means is lower- and mid-income people had better hide their wallets,” he noted.







