The Ontario Government is introducing the biggest and most comprehensive tax reform package in decades.
Tax reductions and harmonizing the sales tax are part of a total tax reform package, which, over the next three years, would include $10.6 billion in tax relief for Ontario citizens and $4.5 billion in tax relief for business.
All Ontario taxpayers would see a 16.5% cut in the tax rate on their first $36,848 of taxable income. That is the lowest rate of any province in Canada, and would affect 93% of Ontario taxpayers.
Every low-and middle-income person (including children) will be provided with a permanent annual $260 sales tax credit and the Ontario Property Tax Credit would provide an additional $270 million in property tax relief to tenants and owners.
The proposed HST would not affect items you currently pay both GST and PST on, nor will it affect the following exempt items:
– Basic groceries — Prescription drugs — Municipal public transit — Health and education services — Legal aid
– Most financial services — Auto insurance — Residential rents — Condo fees — Resale homes
– New homes under $400,000 — Child care
– Children’s diapers, clothing and footwear — Children’s car seats and car booster seats — Feminine hygiene products — Books
The proposed harmonization will require federal legislation to levy the provincial portion of the HST which must be voted upon by federal MPs. The federal government has encouraged the provinces to harmonize taxes for some time. As an incentive, Ontario has negotiated $4.3 billion from the federal government to help ease the transition. This money will be passed on to individual Ontarians. Single people earning under $80,000 per year will receive $300, while couples and families earning under $160,000 will receive $1,000.
In order to spend an additional $1,000 on the provincial portion of the HST, one would have to spend $12,500 on items or services on which you currently pay just GST.
Ontario is the business and manufacturing centre of the country, so, naturally, we stand to gain the most by encouraging new investment and increasing competition. When Ontario emerges from this global recession, the world’s economy will be fundamentally different; Ontario must be ready to compete. We cannot attract investment and jobs in the 21st century with a tax system from the 1960s, which is currently in place in Ontario.
We will provide business with input tax credits to effectively eliminate the provincial sales tax that is currently paid through each step of production; from the purchasing of raw materials to shipping, wholesalers and distributors. Ontario is the only jurisdiction in the world that exports 80% of what we make, yet taxes the inputs needed to make these goods. Removing the many layers of embedded taxes will decrease the price of goods.
As a responsible government, during this time of serious economic recession, we have engaged in fundamental tax reform. A vital feature is moving to a single sales tax which is integral to ensure Ontario has a strong future by attracting investment and maintaining competitiveness.
http://www.thebarrieexaminer.com/ArticleDisplay.aspx?e=2125923
The Ontario Government is introducing the biggest and most comprehensive tax reform package in decades.
Tax reductions and harmonizing the sales tax are part of a total tax reform package, which, over the next three years, would include $10.6 billion in tax relief for Ontario citizens and $4.5 billion in tax relief for business.
All Ontario taxpayers would see a 16.5% cut in the tax rate on their first $36,848 of taxable income. That is the lowest rate of any province in Canada, and would affect 93% of Ontario taxpayers.
Every low-and middle-income person (including children) will be provided with a permanent annual $260 sales tax credit and the Ontario Property Tax Credit would provide an additional $270 million in property tax relief to tenants and owners.
The proposed HST would not affect items you currently pay both GST and PST on, nor will it affect the following exempt items:
– Basic groceries — Prescription drugs — Municipal public transit — Health and education services — Legal aid
– Most financial services — Auto insurance — Residential rents — Condo fees — Resale homes
– New homes under $400,000 — Child care
– Children’s diapers, clothing and footwear — Children’s car seats and car booster seats — Feminine hygiene products — Books
The proposed harmonization will require federal legislation to levy the provincial portion of the HST which must be voted upon by federal MPs. The federal government has encouraged the provinces to harmonize taxes for some time. As an incentive, Ontario has negotiated $4.3 billion from the federal government to help ease the transition. This money will be passed on to individual Ontarians. Single people earning under $80,000 per year will receive $300, while couples and families earning under $160,000 will receive $1,000.
In order to spend an additional $1,000 on the provincial portion of the HST, one would have to spend $12,500 on items or services on which you currently pay just GST.
Ontario is the business and manufacturing centre of the country, so, naturally, we stand to gain the most by encouraging new investment and increasing competition. When Ontario emerges from this global recession, the world’s economy will be fundamentally different; Ontario must be ready to compete. We cannot attract investment and jobs in the 21st century with a tax system from the 1960s, which is currently in place in Ontario.
We will provide business with input tax credits to effectively eliminate the provincial sales tax that is currently paid through each step of production; from the purchasing of raw materials to shipping, wholesalers and distributors. Ontario is the only jurisdiction in the world that exports 80% of what we make, yet taxes the inputs needed to make these goods. Removing the many layers of embedded taxes will decrease the price of goods.
As a responsible government, during this time of serious economic recession, we have engaged in fundamental tax reform. A vital feature is moving to a single sales tax which is integral to ensure Ontario has a strong future by attracting investment and maintaining competitiveness.
http://www.thebarrieexaminer.com/ArticleDisplay.aspx?e=2125923
Related Websites
- Safely Stash Your Cash In US Savings Bonds Many consumers who are unhappy with the often low interest rates being offered for savings accounts with your bank might want to consider researching United States Savings Bonds as an alternative. As consumers are more...
- TARP 18x: the Unknown Bailout that Requires a Supreme Court Ruling for Full Disclosure The gray zone between what people say they're doing and what they're really doing is where true journalists make their value known. No better examples exist than Bloomberg's Mark Pittman (deceased) and Bob Ivry who...
- 401k Introduction The original 401(k) plan was created and set into motion by Congress in the year 1978 as a way for people to save up for their own retirement before they had to pay taxes on...
- Long-Term Care Options Change Again What are your plans for long term care? Is it the "I won't need it so don't worry about it plan?" That is not a plan, of course, and if you are leaning in that...
- Why Don't Employees Pay for Unemployment Insurance? Before you start calling me bad names, let me assure you that even Mr. ToughMoneyLove has sympathy for the unemployed. I am so grateful that I am not one of them. For any of you out...
