Ontario was hit hard by the worldwide recession.
But we’re hitting right back with a bold, aggressive plan to create new jobs and growth.
It’s called the Open Ontario plan. And it’s a plan that is working.
By now, you should have already received your first transition cheque.
On top of that, you should already be enjoying the benefits of reduced income tax, which came into effect on January 1st of this year.
These two key elements of our plan are putting money back into your pocket to help you adapt to the changes that are about to take place, as the most important part of our plan comes into effect.
On July 1st, the 5% federal GST and 8% PST are being combined into a 13% Harmonized Sales Tax (HST).
The question on your mind right now is what that means for you. What you need to know is that most of what you spend – 83% – will see no change in tax. That includes things like groceries, electronics, and cell phone services.
Only 17% of what you spend will see a change.
And a few items, such as movie tickets, will actually have less tax!
Not only is Ontario’s tax reform package going to put money in your wallet, but it is also going to eliminate hidden costs for businesses, allowing companies to invest in growth and creating new jobs.
The whole purpose of the Open Ontario plan is to level the global playing field for Ontario businesses, allowing us to be more competitive around the world.
With our tax cuts and elimination of hidden taxes, we're cutting the tax rate on new business investments in half.
The savings in reduced paperwork for businesses alone will be over $500 million per year.
That makes Ontario one of the most competitive jurisdictions in the world, and it will help us win new investments and new jobs.
Because of the HST, nearly 600,000 new, good jobs will be created in Ontario over the next 10 years. That means a brighter and more prosperous future for our children and grandchildren.
And a stronger, more productive economy will allow us to continue to strengthen vital public services, like health care and education.
The worldwide recession has been one of the greatest challenges Ontario has faced in a generation. But with our Open Ontario plan, we’re rising to it.
For a full list of what will and won’t be charged HST, visit www.ontario.ca/taxchange. For more information on tax reform and the Open Ontario plan, contact my Constituency Office at 416-630-0080.