Canada's government must control the rate of spending growth if it is to keep within its expenditure targets, Finance Minister Jim Flaherty said on Wednesday.There you go, "prudent" fiscal managers who overspend. And for good measure, Flaherty continues the attack on Ontario:
Flaherty's Conservative government concedes it has not managed to keep a promise to keep the rate of spending growth at the same level, or lower, than the rate of growth of nominal gross domestic product.
Critics estimate that government spending has increased by between 14 percent and 16 percent since the Conservatives gained power in January 2006.
Daniel Goldbloom: Now another question from Ontario — I’ll admit that this one comes from me and not from a reader. You’re on record as saying Ontario is the last place to invest in Canada, because of their taxation. Now my question is where in Canada is the second last place to invest?I assume Flaherty will be getting back to us on the other province he meant to condemn here...
Jim Flaherty: I thank you for saying ‘because of taxation’ because that’s actually what I said, that if a business person looks at tax, the tax burden in Canada, that the least competitive place is here in the province of Ontario. They need to fix that — that’s harmonization of provincial sales tax with the GST and also reducing their business tax rates as most of the rest of the country is doing.
So the government of Ontario needs to get with that program. I’d have to think of my corporate tax rates, give me a moment her to think, it must be ... certainly not Alberta. I’d have to check that, it wouldn’t be fair for me to guess at which province. It would be a non-harmonized province because ... I’d have to check to make sure I’m accurate about which one. One of the non-harmonized ones. (emphasis added)