August 03, 2015

Ontario’s pension payroll tax: Kathleen Wynne's greatest scam yet

Richard AndersonRebel Blogger
 

Cometh the election, cometh the posturing:

The Liberal premier of Ontario — home to more than one third of the 338 seats up for grabs on Oct. 19 — said Canada needs to replace Harper with a prime minister who will work collaboratively with the provinces.

"I have said for some time and I will continue to say that we really need a change," Wynne said in a phone interview.

"We need a new approach from a new prime minister. In this country, we need a federal government that will work with, and not against, provinces."

In particular, Wynne said Ontario needs a federal government that will "work in partnership" with the country's largest province.

She criticized Harper for refusing to work with Ontario on development of a supplementary pension plan.

It is a time honoured tradition that premiers look to Ottawa for one reason and one reason only: To beat the Prime Minister of the day over the head with their begging bowls. What Kathleen Wynne is looking for is not a "partnership" but a ceaseless no-strings-attached flow of federal money. Like a petulant teenager the sextuagenarian premier always wants more and offers little in return. Prime Minister Harper has wisely refused to play her game. 

Of particular irritation to the pantsuited Ontario leader is Ottawa's reluctance to back her new supplementary pension plan. The scheme is both unnecessary and corrupt in the finest traditions of the McGuinty-Wynne years. Even at a glance the plan's rationale - that Ontarians are saving too little for retirement and must be "helped" by the government - falls apart quickly. 

Many Canadians save too little because they are paid too little. A pension payroll tax will significantly lower the take home pay of the poor, a cruel and regressive act for an allegedly "liberal" government. Even if the issue is that too few save, among those who could afford to, it is hardly the role of a near bankrupt provincial government to play retirement planner. 

The corrupt aspect of Ontario's new pension scheme is a tad more subtle. The money siphoned off from Ontarians paycheques would be placed into the hands of an "arm's length" investment board. Now at the federal level the Canada Pension Plan is administered by such a board.

Those of us who have lived through twelve years of Liberal misrule understand that nothing in Ontario is at arm's length from the Premier's office. From the lawlessness of Caledonia to the eHealth boondoggle, the Liberals have a remarkable habit of twisting public policy to partisan advantage.

Now imagine that you're Kathleen Wynne - please try to subdue the gag reflex - and billions of dollars now flow into the provincial coffers from this de facto payroll tax. Perhaps the money gets tossed into general revenues. Queen's Park then turns arounds and issues IOUs to the "arm's length board" in the form of increasingly worthless provincial bonds. The pension would for actuarial purposes be "fully funded" but as a practical matter one pocket of government is borrowing from the other. 

But perhaps the Wynnesters are a tad more clever than all that. The revenues from this payroll tax go directly to the allegedly "arms length" investment board. Nothing goes into general revenues and the Liberals allow themselves a patina of fair dealing. The board, however, will almost certainly have its investment guidelines laid out by the government. Those guidelines, by the strangest coincidence, will likely have an "invest in Ontario" component.

Some of the money will get used to buy up provincial bonds, lowering the government's cost of borrowing at a time when capital markets are getting skittish about Ontario debentures. Quite a lot of the rest will be used to fund infrastructure projects, private-public sector partnerships and other initiatives that will, mysteriously, favour Liberal allies. The Chretien era Adscam scandal will seem like chump change in comparison. 

Out of the crooked timbers of the Liberal Party no straight thing was ever made. Ontario's new pension plan is no exception. 

 

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Comments
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commented 2015-08-04 17:45:25 -0400
Simply another “tax and spend” by a Lieberal Gov’t. The fund will be dry before any “pensioner” actually gets to collect on their forced contributions. The Feds won’t cooperate? Boo Hoo! Quebec, that other socialist bastion sucks up 40 percent of the total transfer payments in this country. The Ontario Lieberals will demand the other 60 percent!
commented 2015-08-04 15:03:42 -0400
I am surprised that Grip Tight Wynne has found time to instigate a scam like this. It must be hard for her to end her latest Fisting session, dose she still use Boxing Gloves ?, and plot her evil, stupid schemes. Premier Wynne, in my opinion, you are not only an idiot, you are an evil idiot. How long do we have before you introduce Sharia Law to the Citizens of Ontario.
commented 2015-08-04 14:25:03 -0400
Per capita debt in Ontario – a Whopping $18,717! Second in Canada only to, yep, you guessed it, QUEBEC. Is anyone, other than those sucking the gov’t teat, listening to this woman? Surely not.
commented 2015-08-03 22:00:06 -0400
Winnie and friends should be in jail, and it is appalling that she is getting away with the destruction of ON. And the public gave this criminal a majority government to boot. She is shamefully stealing from the current and future generations. She has no brains, and no shame. I pity those who never voted for this criminal, and will have to suffer because of it.
commented 2015-08-03 19:11:47 -0400
For Wynne and her Liberals this pension plan scheme is just another “revenue tool” And who’s the Tool?
Just another piggy bank for them to pilfer. They are like the communists, they don’t know how make money, only how to steal it.
commented 2015-08-03 18:52:10 -0400
Well written, and bang on. This is yet another revenue tool, and you need a lot of that when you spend foolishly and often. She’ll launder the money as mentioned, and it will be gone.
I wonder when the first pensioner will qualify. Long ways down the road I would think. Those rules probably aren’t even written yet. No matter, Lickety Split will be in the ground, and all there will be is some note for future payments in your file.