Ontario PCs would lower the small business tax rate to 3.2%, a move the party estimates would cost the government treasury $60 million annually.
PC Leader Doug Ford said small companies in Ontario are struggling with red tape and high hydro bills.
“We will cut the hydro rates for small business by 12% and… we will reduce taxes on small businesses by 8.7%, money taken out of the government’s pockets and put back into the pockets of the mom and pop stores, the innovative startups and the family businesses working hard to get by,” he said Thursday during a campaign stop in Cambridge.
The Tory plan calls for the business tax rate on the first $500,000 of income to drop to 3.2% from the current 3.5%, bringing it in line with the provincial average in Canada.
Ford has already said he would drop hydro rates for small businesses by 12%.
More financially significant for many small businesses, the PCs are vowing if elected to stop the planned Jan. 1 increase in the minimum wage to $15.
The Kathleen Wynne government cut the corporate tax rate for small business to 3.5% from 4.5% in January, in part to offset concerns raised by employers over the rapid increase in the minimum wage.
“We recently lowered the small business tax rate a full point, three times what Doug Ford is saying he would do,” Liberal MPP Steven Del Duca said in a statement. “We all know Doug Ford will cut services like health care and education, which people rely on, and those cuts will definitely hurt small business.”
In its election platform, the NDP says it would ensure that 33% of the $6 billion the government spends on goods and services each year would go to small and growing businesses as part of a wide-ranging effort to support a thriving start up culture.
CFIB, which represents small and medium-sized businesses, has yet to put out an election wish list but a poll of its members released Thursday found they were most worried about government debt and deficits.
“The province’s fiscal fitness is particularly relevant at a time when all parties are making new spending commitments,” Julie Kwiecinski, CFIB director of provincial affairs, Ontario, said in a statement. “Small business owners know that today’s deficits are tomorrow’s taxes. On behalf of our members, we are looking to all parties to come out with concrete plans to get the province’s books back in the black and the debt load under control.”
Ontario Auditor General Bonnie Lysyk has made repeated calls to government to produce a plan to begin paying down debt, but none of the three parties have yet to produce such a timeline in this campaign.
All three major parties – the Ontario NDP, Liberals and Tories – have said they’ll run annual operating deficits at least this year.
The Ontario Chamber of Commerce provided its own recommendations to improve business competitiveness, calling the province the most regulated in the country.
The Chamber asked for measures to reduce the cost of hydro and mitigate the impact on competitiveness of efforts to reduce greenhouse gases.
Source:: Toronto Sun – Movies