McGuinty Government Helping Companies Through Global Economic Challenges
TORONTO, Sept. 3 /CNW/ -
The final round of the McGuinty government's capital tax rebate cheques
for Ontario manufacturers and resource companies is being delivered this
Eliminating capital taxes helps Ontario manufacturers and resource
companies get through the current economic challenges caused by high oil
prices, a high dollar and a slumping American economy. The money saved can be
used to buy high-tech equipment, retrain workers or invest in research and
The Premier made the announcement while touring Honeywell's Mississauga
aerospace manufacturing facility. Honeywell will save approximately $764,000
this year because of the elimination of the capital tax. The savings will
allow the company to reinvest into research and development.
In Budget 2008, the capital tax for manufacturers and resource companies
was eliminated retroactive to January 1, 2007. For all other companies,
capital tax rates have been cut by 21 per cent retroactive to January 1, 2007,
on the way to full elimination in 2010.
Strategic tax cuts that help business are part of the McGuinty
government's five-point plan to strengthen the economy. When fully phased in,
Ontario will provide almost $3 billion annually in corporate tax cuts to
encourage investment, attract jobs and make sure businesses are able to
compete and thrive.
"We have the right plan for the times, one that builds a stronger Ontario
by supporting families and business. By eliminating the capital tax
retroactively, we can help forward-thinking manufacturers become more
productive so they can create and retain jobs," said Premier Dalton McGuinty.
"Eliminating the capital tax was a priority for CME. The Premier's action
to eliminate this tax will help manufactures to make the investments necessary
to move ahead in these very challenging times," said Ian Howcroft, Vice
President of the Ontario Division for Canadian Manufacturers & Exporters.
- The capital tax refund for manufacturers and resource firms is
returning $190 million to Ontario companies.
- Ontario's combined federal-provincial corporate income tax rate is
lower than the combined federal-state corporate income tax rate in
all 50 American states.
Find the forms you need to file a return and get a 2007 Capital Tax refund
Read about the government's five-point plan
(http://www.fin.gov.on.ca/english/budget/ontariobudgets/2008/) for the Ontario
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For further information:
For further information: Premier's Media Office: (416) 314-8975