The Ontario’s Chamber Network calls for tax reform, smart spending to support Ontario businesses
The Kawartha Chamber of Commerce & Tourism, in partnership with the Ontario Chamber of Commerce (OCC) provided the Ontario government with 11 recommendations for the upcoming provincial budget that will help businesses manage costs and secure the province’s competitive advantage. The submission, presented to the Standing Committee on Finance and Economic Affairs, calls on the government to implement taxation reforms and smart infrastructure and transportation spending to maximize growth and benefit all regions of Ontario.
As the cost of doing business in the province continues to increase, and Ontario employers take on one of the largest wage increases in recent history, Ontario’s Chamber Network is recommending the government reinstate the scheduled corporate income tax rate from 11.5 per cent to 10 per cent. The submission also calls on the harmonization of the Business Education Tax across the province, as well as targeted reductions to the Employer Health tax.
“Employers in our region, of all sizes are feeling the pressure from rising costs,” said Cindy Windover, Chamber Board President, “The recent minimum wage and labour and employment standard changes will cost Ontario businesses an estimated $23 billion over the next two years. We need more support for business and the government’s commitments made in last year’s Fall Economic Statement are simply insufficient.”
The pre-budget submission also recommends that the government create additional small business deduction tax brackets, as well as delay taxation on corporate income growth to overcome the scale-up challenge. Currently, all businesses with an annual income of $500,000 or less are taxed at a flat rate. A bracketed taxation system would give startup and SMEs more room to grow. Currently in Ontario, 71 per cent of private sector jobs can be attributed to the activities of small and medium sized enterprises.
The Ontario Chamber Network also encourages members of the committee and government to consider how are we leveraging Ontario’s greatest asset—human capital.
The recommendations outlined in the OCC’s pre-budget submission all come directly from Ontario’s Chamber Network through policy resolutions at the OCC’s AGM. Read the full submission and all 11 recommendations here.