HST bill passes

Nipissing MPP Monique Smith
News Release

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Today in the Legislature during Third Reading debate on the Fall Budget Bill (Bill 218), the Honourable Monique Smith, MPP for Nipissing spoke to the Bill and read into the record North Bay City Council's resolution passed November 30th, 2009.

Smith acknowledged, as did the Finance Minister, that the Government must continue to clearly outline for Ontarians the net benefits of its tax reform package, particularly in light of inaccurate characterizations of this package that have been perpetuated by the Opposition and some with a vested interest in doing so. She also noted that she believes the people of Ontario are looking forward to the personal income tax cuts, which will be effective January 1, 2010, that come as part of this package.

With today’s passage of Bill 218, the Ontario Tax Plan for More Jobs and Growth Act, 2009, Minister Duncan announced that the McGuinty Government will provide individuals, families and businesses with more than $15 billion in tax cuts over three years.

This legislation is the centrepiece of the McGuinty government's plan to create jobs and return the province to economic growth. In addition to introducing the Harmonized Sales Tax (HST), the bill gives 93 per cent of income taxpayers a permanent personal income tax cut and 90,000 low-income Ontarians will no longer pay any provincial personal income tax.

Tax cuts for business include reductions in Corporate Income Tax rates for large and small business.  These tax cuts will enhance the benefits of the HST by attracting more business investment into Ontario and creating close to 600,000 new jobs.

The McGuinty government’s plan will also offer further assistance to low- and moderate-income Ontarians by almost doubling property tax and sales tax credits.

QUICK FACTS

A recent study, Ontario's Bold Move to Create Jobs and Growth, by Jack Mintz, estimates that, within 10 years, the HST, combined with Ontario's Corporate Income Tax rate cuts and other recent tax changes will create 591,000 net new jobs, attract $47 billion in business investment and increase annual incomes by up to 8.8 per cent.

When fully implemented, the HST and cuts to business taxes will cut Ontario's marginal effective tax rate on new investment in half – making Ontario the most competitive jurisdiction in new investment in North America.

The HST is just one part of a comprehensive tax package that will also provide, over three years, $10.6 billion in direct payments and permanent tax relief to the people of Ontario and $4.5 billion in tax relief for businesses.

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