The Ford government gets fat on inflation while Ontarians scrimp
‘If it cared it could say: ‘Inflation is giving us a windfall increase in sales taxes. We could spend it, but we know you need it more”
As Ontarians struggle to cope with inflation and the rising interest rates that are supposed to fix it, the least they should expect from their provincial government is a little empathy, maybe even some fairness. Instead, the Doug Ford government is living large on an inflation-driven tax windfall, and boasting about it.
In inflationary times, there is no better business to be in than the sales tax game. Every time the price of a good or service goes up, so does the take from the province’s eight-point share of the HST.
In 2021–22, Ontario’s sales tax brought in $30.4 billion. Last year, the amount was $36.1 billion. That’s a permanent annual increase for the government. Even though the rate of inflation is moderating, that just means it’s going up less quickly than it was. Barring an economic collapse, we’ll never see prices return to what they were before the inflation surge.
The Ford government is spending furiously while many of the people who provide the tax dollars are scrimping, cutting and wondering if they can continue to afford Netflix. It’s just not right.
