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%.