TORONTO, March 24 /CNW Telbec/ - On the eve of the Ontario Budget, Jim
Flaherty, Minister of Finance, remained hopeful Premier Dalton McGuinty will
reduce Ontario's business taxes.
Business taxes in Ontario are currently the highest in Canada. If no
action is taken, Ontario's Marginal Effective Tax Rate, the overall tax rate
on new business investment, will be 30.7 per cent in 2012, compared to only
18.8 per cent in Quebec.
"I will be the first person to stand up and applaud Premier McGuinty if
he takes steps tomorrow to reduce the tax burden on businesses in Ontario,"
said Minister Flaherty. "For every dollar in business tax reductions, two
dollars are generated in new investment."
When the provincial Budget is tabled on March 25th, Minister Flaherty
expects Mr. McGuinty to:
- Begin reducing the provincial business income tax rate - with a goal of
meeting a combined 25 per cent business tax rate in Canada by 2012;
- Make a commitment to fully eliminate capital taxes for businesses in
all sectors; and
- Take steps towards harmonizing Ontario's retail sales taxes with the
GST or at the very least, transitioning Ontario's retail sales tax into
a value-added tax.
"Dalton McGuinty can't do anything about the rising price of oil or the
high value of the Canadian dollar, but he can take action to reduce taxes on
businesses throughout the province," said Minister Flaherty.
Minister Flaherty applauds Premier Gary Doer in Manitoba, B.C. Premier
Gordon Campbell, Quebec Premier Jean Charest, Saskatchewan Premier Brad Wall
and New Brunswick Premier Shawn Graham for their efforts to lower taxes.
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For further information: media may contact: Dan Miles, Director of
Communications, Office of the Minister of Finance, (613) 769-0582