A competitive tax system drives economic growth and job creation.
Poorly structured tax systems are burdensome and costly, creating a drag on economic activity and reducing the willingness of firms to invest, hire, and expand in Ontario. Excessive taxation prevents Ontario firms from investing in leading edge technologies such as machinery, equipment, and software.
Given Ontario’s fragile economic recovery, Ontario’s tax regime must continually evolve in response to changing internal and external circumstances in order to create conditions for growth.
While the provincial government has taken steps to make the province’s tax system more competitive (including the implementation of the Harmonized Sales Tax, elimination of the capital tax, and extension of the accelerated capital cost allowance for the manufacturing sector), there is still work left to be done.
The OCC will continue to advocate for a competitive and simplified tax regime that is designed with a view to reducing the tax burden on job creators.
The OCC encourages the government of Ontario to introduce reforms to the tax system, including:
Lowering the Business Education Tax rate, and creating a uniform rate across the province.
Reducing the corporate income tax rate to 10 percent.
Altering the provincial property tax structure to encourage growth.
Raising the exemption threshold on the Employer Health Tax.