The Government of Ontario released its budget today for the 2008-09 fiscal year. Despite calls from the federal government to reduce taxes, the provincial government instead announced some tax breaks and $355 million to train unemployed workers in getting news jobs.
It also announced nearly half a billion in public transit subsidies for Toronto and Hamilton.
The government appears to be on the right track, especially in light of a major shift in employment from manufacturing to professional services and construction in the province. The surplus is projected at $600 million.
Although the U.S. (a major export market for machines made in Ontario) appears headed for recession, the Ontario government is predicting economic growth in its budget. Any losses in manufacturing jobs would probably be caused mainly by the rise in the dollar and lower purchasing power from Americans who have either decided to save more money or who simply can’t borrow more. A reduction in the corporate tax rate probably wouldn’t make a huge difference, but funding education for former manufacturing workers who are looking to change careers is a sound move.
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