Fall Bill Cuts Taxes and Creates Jobs for Ontario
McGuinty Government's Budget Bill means $15 billion for Ontarians
With today's passage of Bill 218, the Ontario Tax Plan for More Jobs and Growth Act, 2009, the McGuinty government will provide individuals, families and businesses with more than $15 billion in tax cuts over three years.
This legislation is the centrepiece of the McGuinty government's plan to create jobs and return the province to economic growth. In addition to introducing the Harmonized Sales Tax (HST), the bill gives 93 per cent of income taxpayers a permanent personal income tax cut and 90,000 low-income Ontarians will no longer pay any provincial personal income tax.
Tax cuts for business include reductions in Corporate Income Tax rates for large and small business. These tax cuts will enhance the benefits of the HST by attracting more business investment into Ontario and creating close to 600,000 new jobs.
The McGuinty government's plan will also offer further assistance to low- and moderate-income Ontarians by almost doubling property tax and sales tax credits.
- A recent study, Ontario's Bold Move to Create Jobs and Growth, by Jack Mintz, estimates that, within 10 years, the HST, combined with Ontario's Corporate Income Tax rate cuts and other recent tax changes will create 591,000 net new jobs, attract $47 billion in business investment and increase annual incomes by up to 8.8 per cent.
- When fully implemented, the HST and cuts to business taxes will cut Ontario's marginal effective tax rate on new investment in half - making Ontario the most competitive jurisdiction in new investment in North America.
- The HST is just one part of a comprehensive tax package that will also provide, over three years, $10.6 billion in direct payments and permanent tax relief to the people of Ontario and $4.5 billion in tax relief for businesses.
“Ontario must attract new business investment to create jobs and encourage economic growth. We are modernizing the tax system so that when the global recession ends, Ontario's economy will be more competitive and create jobs for our families and communities.”
“Passing this legislation means that as of January 1, 93 per cent of Ontario taxpayers will get an income tax cut - not to mention measures such as a new, permanent sales tax credit for three million Ontario individuals starting in August 2010. Our package is designed to ensure that more families have the dignity of a job, and that as a province, we are able to compete in the 21st century.”