The NCC congratulates Premier McGuinty and Finance Minister Duncan for finally listening to our call for decreased corporate tax rates. We have been calling for this decrease since he was first elected. Sometimes persistence pays off!Â
That being said, we have composed a list of the good, the bad and the ugly regarding Ontario’s budget.
The Good:
- Corporate tax cut to 12% by 2010 and 10% by 2013 (from 14%)
- Harmonization of taxes is good for businesses
- Civil service staff cut of 5% over three years
- MPP salaries are frozen in 2010
- 1% point tax cut on the first $36,848 of income
- Tax credit of up to $1,000 delivered in three installments for families making less than $160,000
The Bad:
- Harmonization will increase the price of many products including:
- Energy (gas, fuels, electricity)
- Tobacco
- Newspapers
- Golf fees
- Internet fees
- Membership fees
- Real Estate commissions
- Taxi fares
- Professional Services (Lawyers, Accountants…)
- New homes (there is a tax rebate that will limit the impact of harmonization on homes under $500,000)
The Ugly:
- Ontario will have a record $14.1 billion deficit next year. That will be followed by
- $12.2 billion in 2010-2011
- $9.7 billion in 2011-2012
- $8 billion in 2012-2013
- $5.8 billion in 2013-2014
- $3.1 billion in 2014-2015
What do you think?



