Ontario's Tax Plan for Jobs And Growth
McGuinty Government Introduces Legislation To Cut Taxes And Create Jobs
Ministry of Finance
Ontario is introducing new legislation that would increase business investment, create new jobs and raise incomes.
Today, the province introduced The Ontario Tax Plan for More Jobs and Growth Act, 2009 that, if passed, would provide individuals, families and businesses with more than $15 billion in tax cuts over three years.
Along with the proposed Harmonized Sales Tax (HST), 93 per cent of taxpayers would pay less personal income tax, while 90,000 low-income Ontarians would no longer pay any provincial personal income tax. The province is also proposing to almost double the property tax and sales tax credits, putting more money back in the pockets of more Ontarians.
Proposed tax cuts for business would enhance the benefits of the proposed HST by attracting more business investment into Ontario and creating even more jobs.
Beginning July 1, 2010:
- The general Corporate Income Tax (CIT) rate would be cut from 14 per cent to 12 per cent and further reduced to 10 per cent over three years.
- The CIT rate on manufacturing and processing, mining, logging, farming and fishing would be cut from 12 per cent to 10 per cent.
- The small business CIT rate would be cut from 5.5 per cent to 4.5 per cent, and
- The small business deduction surtax of 4.25 per cent would be eliminated.
- A recent study, Ontario's Bold Move to Create Jobs and Growth, by Jack Mintz, states that the HST, combined with Ontario's proposed corporate income tax rate cuts and other recent tax changes, would significantly increase jobs and capital investment, and lead to higher annual incomes for Ontarians.
- The Mintz study estimates that within 10 years, 591,000 net new jobs would be created and annual incomes would increase by up to 8.8 per cent.
With this new legislation, the McGuinty government is moving forward with our commitment to help ensure that Ontario is on a path for economic growth. We will all benefit from the more than half a million additional jobs that will be created in Ontario as a result of the HST and tax cuts for people and businesses."
The Budget measures will have a profound impact on the willingness of business to invest in Ontario" said Jack Mintz, economist and tax expert. "The much lower tax burden on capital in the province will affect not only its competitiveness but also that of Canada as a whole."