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 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 previous provincial administration took many steps to make the province’s tax system more competitive (including the implementation of the Harmonized Sales Tax, elimination of the capital tax, and reductions to the corporate income tax rate), several recent policy changes (including the introduction of the Ontario Retirement Pension Plan or ORPP) are effectively raising the cost of doing business in Ontario.
We 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.
We encourage 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.
Reforming the labour arbitration system to ease the pressure on municipalities who have been forced to raise taxes to compensate for unsustainable increases in emergency services costs.