Green Economics Would Improve Government Finance and Responsibility
Balance Ontario Budget With Green Taxes: De Jong
| Here is some exciting news from the Green Party of Ontario, Canada. We are not aware of any other political parties that propose specific measures that would actually result in a balanced government budget right away. |
Ontario should use resource consumption taxes to balance its budget and start paying down its $139 billion debt. Not balancing the budget cripples future governments, says Green Party of Ontario leader Frank de Jong, noting that 13 percent of every tax dollar now goes to paying interest on the province's debt.
In 2003-04, interest costs on Ontario's net debt, now estimated at $139 billion, will amount to $10 billion, or 13 per cent of total spending. "Instead of more taxes on lotto winnings and alcohol, the Ontario government should use ecological fiscal reform to raise the extra $8 billion needed to balance the budget," says de Jong.
Green Party economics is about balance. For continued prosperity we need to balance today's needs with those of tomorrow and we need to balance the needs of commerce with the needs of communities.
"Taxes on resource consumption are progressive taxes. They encourage conservation, reduce pollution, and create more jobs," de Jong said, adding that green taxes are taxes are best applied as early as possible in the production process to impact the maximum number of choices that can be made to conserve the resource and to 'green' the final product.
Taken together, the following new resource levies would generate the $8 billion to balance the Ontario budget.
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AGGREGATE
Ontario consumes 155 million tonnes of aggregates annually for roads and building construction. The GPO would levy at $10 per tonne a tax to generate $1.5 billion per year and to encourage aggregate conservation and recycling.
COAL
Total coal consumption in Ontario in 2001 was 19.1 million tonnes, mostly to make steel, and generate electricity. The Green Party of Ontario would apply an at-source tax of $50 per tonne raising $995 million and encourage phase-out and efficiencies in the mining, processing and burning of coal.
NATURAL GAS
Ontario uses 25.6 billion cubic meters of natural gas per year, which wholesales at around $0.24/m3. Average residential gas customer, uses 2,600 cubic metres (m3) of natural gas per year, costing them $624. The Green Party of Ontario would apply a $0.08 depletion tax on natural gas to raise $2 billion and encourage conservation and alternatives.
OIL
Ontario consumes 545,000 barrels of crude oil every day. The province's five refineries process 170 million barrels annually used in the province. To conserve oil and encourage the use of renewables the GPO would apply a tax on crude oil used in Ontario at a rate of $10 per barrel. This levy would generate $2 billion of government revenue.
WATER
Presently 1.8 trillion litres worth of permits are issued in Ontario, but since water is not metered, it is unknown how much is actually being taken. Municipalities bill their customers around .001/litre for water. The GPO would levy all water taking at the rate of $0.001 per litre, generating $1.8 billion to government if the allowable permits were entirely used. If 80% of the permits were being used it would generate $1.5 billion.
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The Green Party of Ontario has a comprehensive plan to protect people's long-term interests and preserve the environment that sustains our lives and our economy. Practical solutions grounded by shared values are what Green politics is all about. For more information visit www.greenparty.on.ca.
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