Uncomfortably dumb

The Provincial government in Ontario, under the leadership of Kathleen Wynne, is wildly unpopular.  Ms Wynne's personal approval rating is below 20 percent, badly trailing the leaders of the two main opposition parties -- who are not exactly well-liked themselves.  So, with a provincial election now less than two years away, the Liberals are starting to come up with cockamamie schemes to try to win back support.

One of the main reasons for the government's unpopularity is the soaring cost of electricity, which is, now more expensive here than anywhere else in North America.  The price increases are largely the result of the ill-considered "green" measures instituted by Ms Wynne's predecessor, Dalton McGuinty.  He mandated the immediate closure of coal-fired power generation and shoveled vast sums into unreliable wind power, which people in rural areas like mine have been trying to fend off ever since. Ontario routinely sells surplus power below cost to neighbouring jurisdictions.

What to do?  A few months ago, Ms Wynne announced that the Province would remove the provincial portion of the so-called harmonized sales tax (HST) from household electrical bills.  That was good for a few upbeat headlines, but it didn't take long for people to realize that the pennies-per-day benefit of this cut would be immediately outweighed by fresh "green" levies that have already been approved.  Despite the tax cut, Ontarians will be paying more, not less, for power in 2017.  

Today, Wynne's Finance Minister, Charles Sousa, tabled his fall Economic Statement.  A couple of weeks ago, Sousa trailed the idea that housing in Toronto was becoming unaffordable for first time buyers, and hinted that he was going to try to do something about that.  Today we find that the "something" is a doubling, to $4000, of the existing rebate on the land transfer tax paid by first time buyers, to be financed (allegedly) by a higher tax rate on more expensive homes.

Politicians never learn, do they?  The most certain consequence of a tax break like this is that the asking price for starter homes in the Toronto area will rise by $2000 almost overnight.  That's bad enough, but consider this: a few weeks ago, Federal Finance Minister Bill Morneau announced a tightening of mortgage rules mainly aimed at first-time buyers, with the aim of curbing the unsustainable rise in house prices.  And today we see Sousa, whose jurisdiction includes the frothiest market of them all, Toronto, introducing a measure that will have precisely the opposite effect.  Brilliant!