Hudak says he will balance the budget in 2 years. After that, he vows to cut income tax by 10%.
Hudak vows 10% income tax cut after balancing budget | News | Ontario Votes | To
So let me get this straight: he will slash services to balance the budget then immediately go into deficit again by cutting income tax? If that doesn't illustrate how ridiculous Hudak's plan is then I don't know what will. Afterwards I'm sure the solution Hudak will offer will be to slash services once more. Where does it end? It ends when there are no public services left and no one pays any taxes at all. It's like a vice tightening down a little at a time squeezing all working people. Basically, Hudak's plan, and that of all Conservatives, is a death spiral for government and public services (except police. They always expand and get more powers because we know that crime goes up as more people fall into poverty and despair).
Conservatives always only look at one side of the ledger. Any economist worth his salt would look at both. Why don't Conservatives ever talk about increasing government revenue? You can do it without raising personal income taxes. But no, it's always cut services, privatize or sell off government assets, starve the government. It's ridiculous. If you're ok with that then please don't complain about hospital wait times or the shit roads or constantly rupturing water mains, etc.
How do you balance the books without slashing services? Easy. Grow the economy. More people working means more tax revenue coming in from both individuals and businesses. If you make massive cuts now with the economy at 1-2% growth there is a real risk of slipping back into recession. You need to have 3-4% growth to withstand such huge cuts like 100K people out of work. I read estimates of $2.5 Billion in unemployment and severance payouts for that many people fired. Not to mention the lost tax revenue, and less consumer spending that will affect peripheral businesses. It's a double whammy.
Infrastructure spending puts people to work (in good paying jobs) and repairs our crumbling roads, sewers and bridges. It's an investment that pays off in spades. Yes, it requires the province to take on debt like any other business. Taking on debt is not as bad as Conservatives would have you believe. Look at the USA. $17 Trillion in debt. Not a chance in hell of that ever being paid back. Does that mean the USA will cease to exist, or someone will confiscate all their property? Of course not. It will always be business as usual.
Hudak made a big deal about electricity prices, saying how the company in Texas wanted to expand in Ontario but the rates were too high. He said that in Texas electricity rates are much lower. That's true. But what he failed to mention was that Texas produces the most wind power of any state.
WINDExchange: U.S. Installed Wind Capacity You think they did that without subsidies? And Hudak wants to get rid of green energy subsidies in Ontario. How the fuck does that make any sense? In time the price of renewable energy will drop, but you have to think long term. Something Conservatives are incapable of doing. Bottom line is pay a little now, or a lot more later. A prime example is how Harris/Hudak cancelled and filled in the Eglinton subway.
The Eglinton subway line that Toronto never got It would be built by now, but no. Now it will cost much, much more. And all of Ontario will be paying for it. Now Hudak wants to repeat the mistake with renewable energy. Stupid.
Sure, it seems like hydro rates are high here, mostly because it was super cheap for so long until the Harris debacle of splitting Ontario Hydro. But the fact remains that compared to world prices we are quite cheap.
Kilowatt Hours Electricity Costs Around the World | The Energy Collective Germany pays 3x more for electricity (not to mention high wages and strong unions) and yet companies are not leaving the country in droves. Quite the opposite. So, don't let Hudak try to fool you into thinking that is a factor in Ontario's lost jobs.
Also, austerity has been proven to not work at producing jobs or economic growth. The whole premise that Conservative fiscal ideology is based upon is a proven falsehood. High debt doesn't beget slow growth. Slow growth begets high debt.
Reinhart And Rogoff's Pro-Austerity Research Now Even More Thoroughly Debunked By Studies
There is a reason why Conservatives always look to cut education.