The start of a new year brings with it the annual tradition of the New Year’s Resolution.
Our government made a resolution for the new year, and that was to transform Ontario’s dated taxation system.
For the first time in generations, the world has been rocked by a global recession. It wasn’t created in Ontario, but we are certainly feeling its effects. Many people know of someone who has lost a job. Others have scaled back their own spending, unsure of what the future holds.
We need to create new jobs and increase investment in Ontario.
But the fact is, we simply can't attract investment and jobs today with a tax system from the 1960s. And if people aren’t working, then there is no support for a top-notch education system, a premier health care system, or a strong economy.
As a province, we have to take steps to create badly-needed jobs, to increase investment in our province, and to build a stronger future for our children. This is why we've introduced the biggest and most comprehensive tax reform package in decades.
Ontario's comprehensive package includes $10.6 billion in direct payments and permanent tax relief for the people of Ontario. It also includes a new, permanent Ontario Sales Tax Credit, an enhanced Ontario Property Tax Credit, cuts to corporate income tax rates and merging two sales taxes into a single harmonized sales tax to strengthen our economy.
And in keeping with our government’s New Year’s Resolution, as of January 1st, 93 per cent of Ontario income taxpayers have received a permanent tax cut. We have cut the first income bracket tax rate by one percentage point, from 6.05 per cent to 5.05 per cent. As a result, Ontario will have the lowest tax rate of all provinces on the first income bracket, and an additional 90,000 lower income Ontario taxpayers will no longer pay any provincial personal income tax.
According to renowned University of Calgary economist Jack Mintz, our comprehensive tax reform package is just what the doctor ordered to help Ontario’s struggling economy. He calculates that within 10 years, our comprehensive tax package will create an estimated 591,000 additional new jobs, $47 billion in new business investment and increase the wages of workers across the province.
Through our comprehensive tax reform package, our government is taking action to build a stronger province. This income tax cut will result in savings for Ontario families. And as the new year rolls on, we will continue to move forward with the rest of our tax reform package, attracting new investment and new jobs to Ontario.
We're making important changes to create jobs and put Ontario back on its feet.
For more information on tax reform, contact my Constituency Office at 416-630-0080.