Ontario will have to dramatically raise taxes or slash spending to meet its long-term financial targets, the province’s fiscal watchdog warns. In a 63-page report to the Legislature released Thursday, the financial accountability office (FAO) warned that Ontario’s aging population will put a squeeze on provincial coffers. “Without government action, these demographic changes will slow revenue growth and increase spending, leading to large and rising budget deficits,” he said at Queen’s Park. “The baby boom generation, accounting for over one-quarter of Ontario’s population, will be between 55 and 75 years old by 2020 and in the process of gradually transitioning out of the labour force. This transition is expected to lead to slower growth in employment and overall income,” Wake’s report noted.

Source: thestar October 19, 2017 15:56 UTC