FOR IMMEDIATE RELEASE
April 16, 2004

‘SOUP AND SALAD’ TAX BREAKS PROMISE AND PUNISHES LOW-INCOME ONTARIANS
Liberal Government Slaps $200-Million Tax Hike on Meals Served at Ontario Schools and Hospitals

(Queen’s Park) - Despite Dalton McGuinty’s election pledge to not raise taxes, today, low-income Ontarians are reeling from the government’s proposal to slap Provincial Sales Tax on meals that cost less than $4. Every day, 1.48 million people in Ontario purchase a meal for less than $4. If this Liberal trial balloon is allowed to fly, these Ontarians will have to swallow an 8 percent increase in the cost of their food. For many low-income Ontarians, this is simply not a viable option.

“With this policy, the Liberal government is literally taking food out of the mouths of some of our most vulnerable citizens,” said Laurie Scott “According to the Canadian Food and Restaurant Association, low-income families in Ontario spend 21 percent more of their income on meals away from home than higher income families. This punitive Liberal tax will hit these people hardest and limit their ability to feed their families.”

The Canadian Food and Restaurant Association also claims that 86 percent of meals served to children in Ontario schools will now be subject to the Liberal ‘Soup and Salad’ tax. The same will hold true for 95 percent of the meals served in hospital cafeterias.

There is a significant threat placed on small businesses across the province as a result of Provincial Sales Tax being charges on meals under $4. Approximately 7,400 jobs would be lost in the foodservice industry and sales would decline by as much as $214 million.

“After watching 26,000 jobs leave Ontario in the month of March as a result of their $4-billion income tax hike, the Liberals are trying to drive 7,400 more jobs out of Ontario by sticking their hands deeper into the pockets of small businesses and vulnerable Ontarians,” said Laurie.

Since October, the Liberal government has increased corporate income tax, personal income tax, business education property tax, hydro rates, labour costs for employers, and most recently threatened to slap PST on meals under $4. These measures have resulted in a more than $4 billion pressure on Ontario taxpayers and employers.

At the same, the government has failed to show any signs of fiscal restraint and has recklessly jacked up government expenditures by more than $3 billion.

“Dalton McGuinty has confirmed that he is nothing more than a classic tax-and-spend Premier at the helm of a classic tax-and spend government,” said Laurie. “It is time that he came to his senses and started to support the businesses that drive our economy and support the vulnerable Ontarians who need the government’s support. He should do the right thing and cancel his ‘Soup and Salad’ tax.”

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