Just to give everyone a 'quick and dirty' calculation that ought to show just how much we're being hosed by jowly Dwight Duncan and Parson McGuinty, let's do some comparative math.
California (pop. 38 million) just signed its budget at $87 Billion US, or around 95 billion can. Now, assuming that california's not on the hook for any healthcare payments out of their budget, then that money goes to pay for government ex-healthcare. Ontario spends about half its budget on healthcare, so then we can conclude that roughly $50 billion is spent on everything but healthcare here. So, the apples to apples comparison between high cost, high tax, and expensive California and Ontario is that they spend roughly double what we do for roughly comparable services, while however having 3.25 times our population (38 vs. 11.5 million people).
The HST rate should decline to make it revenue neutral; McGuinty is keeping at its higher rate in order to transfer money from consumers to producers in the province, which he seems to think ought to encourage investment spending that should in turn blunt the impact of the high canuck buck. This should spur investment here, and eventually lead to lower prices overall (as supply from businesses increases), and greater demand for labour, which should support wages over the long term. But not now, in a frigging recession. And they did it because spending, as themexi pointed out, has been so out of control in the last 5 years that they weren't able to pay for a tax break to business out of the surpluses they should have been running during the boom times.
Check this out: government sector workers get raises during boom time, because otherwise it is claimed that they'll decamp to better paid gigs in the booming private sector (as if skills are that transferable), and during busts we don't dare cut the public sector because their paychecks then become an indispensable support to the struggling private sector. So WHEN the fuck does the government ever scale itself back????
Answer: Never.