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Barack Obama

France, Socialist candidate

deal with the NDP to support his budget and avoid an election. McGuinty said all revenues from that new tax would be devoted to "accelerating our plan to eliminate the deficit."

According to finance officials, about 23,000 people — or 0.2 per cent of tax filers — would pay an average of about $19,000 more in income tax. The Liberals and NDP have estimated the new tax will generate somewhere between $440 million and $570 million. But Milligan said those numbers are "ambitious."

"There’s very strong evidence there as well that, especially for the highest earners who have access to really good tax advice, when tax rates go up, they find legal ways to readjust their affairs so they lower their tax bill."

Asked about how that might affect overall revenues, Marion Nade, a spokeswoman for NDP Leader Andrea Horwath, said via email that "all governments are concerned with tax avoidance. We support any means of addressing those loopholes."

Milligan also said he doubted the tax would scare off the very wealthy.

“We know quite a bit about the impact of this kind of tax,” said Milligan. “You hear some people say it will deter business investment , this will deter entrepreneurship. And the evidence on that is pretty strong that that’s not the case.” Milligan said that's because at the very, very high end of income distribution, most of the income is earned income. "These aren’t entrepreneurs and investors. These are people who are working for a living. They are very well-compensated people working for a living, but it just makes it a very different set of people than if these were all investors with a big pot of money wondering where they will invest it." But Milligan said he doesn’t believe top executives won't work as hard or leave the province because they’re earning a couple percentage points less.

Milligan estimates that the marginal rate for someone earning over $500,000 would now climb to 49.5 per cent from 46.4 per cent. (When factoring in the provincial surtax, the overall tax hike will actually be 3.12 per cent.) But he also noted that tax rates approaching 50 per cent are common in other very high income OECD countries. He said there is a "tipping point" where pushing the tax rates higher could yield no more revenue, or, in fact, drop the revenue. "I don't think evidence suggests that we’re hitting that point yet. My own best estimate is you have to get rates into the 60s before you stop raising new revenue."

Now that the strategy has been released, ISAC will continue to be involved – primarily through work on the anticipated Social Assistance Review (see below). But we will also continue to advocate for improvements to the strategy, and continue to ensure that government meets its commitments.

. It all started back in 2008 but culminated last week when social assistance rates were frozen and the Ontario Child Benefit (OC

Betrayal

ments over the last two politically unholy

rnments over the last two politically unholy weeks. For the nearly 90,000 people in Hamilton who live below the poverty line, the betrayal has been most stinging from the provincial Liberals. It all started back in 2008 but culminated last week when social assistance rates were frozen and the Ontario Child Benefit (OCB) was stalled by $100 a month. Back in 2008, Dalton McGuinty’s governmen

rnments over the last two politically unholy weeks. For the nearly 90,000 people in Hamilton who live below the poverty line, the betrayal has been most stinging from the provincial Liberals. It all started back in 2008 but culminated last week when social assistance rates were frozen and the Ontario Child Benefit (OCB) was stalled by $100 a month. Back in 2008, Dalton McGuinty’s governmen

Back in 2008, Dalton McGuinty’s government, through Minister of Children and Youth Services Deb Matthews, was in conversation with Ontario poverty activists about what should be done to reduce the growing depth of poverty. Setting a target to reduce poverty by 25 per cent in five years sounded doable, and academics and planners came up with concrete actions and numbers that could make it happen

first betrayal to the unattached adults who live in poverty and have no dependent children

People in poverty and those who care about them were disappointed with the announcement but we played nice anyway. We politely applauded the government for making this commitment. We said it was a good first step

We played nice even when yet another review of the social assistance system was announced despite the fact that Matthews had completed one just a few years before

Now, just months before they were to release their final report, social assistance rates are frozen

It is clear the Ontario government has abandoned its Poverty Reduction Strategy, leaving no hope for achieving even the minimal objective of reducing child poverty by 25 per cent in 2013

There’s no more time to play nice

At a meeting of the Roundtable for Poverty Reduction’s Social Assistance Working Group last week, the usually composed director couldn’t contain his emotion as he apologized to people on OW and ODSP around the table for continuing to build up their hopes for a government response which ended in betrayal

Her continued talk about “Ontario families” ignores the reality of thousands of Ontarians who do not live in family situations

It’s time to let her know that she must remember and act on behalf of her 90,000 Hamilton sisters and brothers in poverty