cover image: Ontario's bold move to create jobs and growth : Mesures audacieuses de l'Ontario pour créer des emplois et stimuler la croissance : incidence du budget de l'Ontario de 2009 et d'autres mesures fiscales récentes sur les investissements, l'emploi et les revenus

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Ontario's bold move to create jobs and growth : Mesures audacieuses de l'Ontario pour créer des emplois et stimuler la croissance : incidence du budget de l'Ontario de 2009 et d'autres mesures fiscales récentes sur les investissements, l'emploi et les revenus

2 Nov 2009

The Budget measures will have a profound impact on the willingness of business to invest in Ontario since corporate tax rate reductions and the adoption of the federal GST base would result in the virtual elimination of taxes on capital goods and business intermediate inputs once fully phased in. [...] The effective tax rate on small business investment will fall by more than half, from 28.6% to 13.3%, due to the one percentage point reduction in the corporate tax rate and sales tax harmonization. [...] Within ten years, the lower tax burden on investment will lead to increases in capital investment of $47 billion and in annual incomes of between 4.4% and 8.8%, and to the creation of an estimated 591,000 net new jobs. [...] The second set of measures is related to the harmonization of the Ontario sales tax with the federal GST. [...] The province’s corporate rate reductions and the elimination of the remaining capital tax after July 1, 2010 will cause the effective tax rate to decline a further five percentage points from 23.5% to 18.5%.
government politics budget economics economy finance tax system investment workers business consumer goods employment investments labour prices tax cost of capital government budget taxes corporate income tax corporate tax rate of return business finance capital (economics) economy, business and finance finance, public government finances gst goods and services tax (australia) input tax credits

Authors

Mintz, Jack M

Pages
11
Published in
Canada

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