McGuinty Government Introduces Legislation To Cut Taxes And Create Jobs
Ontario is introducing new legislation that would increase business investment, create new jobs and raise incomes.
Today, the province introduced The Ontario Tax Plan for More Jobs and Growth Act, 2009 that, if passed, would provide individuals, families and businesses with more than $15 billion in tax cuts over three years.
Along with the proposed Harmonized Sales Tax (HST), 93 per cent of taxpayers would pay less personal income tax, while 90,000 low-income Ontarians would no longer pay any provincial personal income tax. The province is also proposing to almost double the property tax and sales tax credits, putting more money back in the pockets of more Ontarians.
Proposed tax cuts for business would enhance the benefits of the proposed HST by attracting more business investment into Ontario and creating even more jobs.
Beginning July 1, 2010:
- The general Corporate Income Tax (CIT) rate would be cut from 14 per cent to 12 per cent and further reduced to 10 per cent over three years.
- The CIT rate on manufacturing and processing, mining, logging, farming and fishing would be cut from 12 per cent to 10 per cent.
- The small business CIT rate would be cut from 5.5 per cent to 4.5 per cent, and
- The small business deduction surtax of 4.25 per cent would be eliminated.