UPDATE: On November 15, the new provincial government released its fall fiscal update. From a higher threshold on certain payroll taxes to a break on how passive investment income is taxed, there's plenty of good news in it for businesses like yours. See our news release for more details on what it means for you.
Below, see our reaction to the 2018 budget, release earlier this year.
The Ontario government has released its budget: A Plan for Care and Opportunity.
Here's what it means for your business:
Ballooning debt and deficit
The government announced it will run a $6.7 billion deficit in 2018-19, breaking from its previous promise to run consecutive balanced budgets. The deficit will be driven by more than $20 billion in spending over the next three years. The government doesn't plan to get the books back to balanced until 2024-25.
The proposed deficit will add more than $30 billion to Ontario's provincial debt and increase annual interest payments on the debt to $17 billion per year in 2024-25.
Personal Income Tax (PIT) changes
Effective July 1, the budget eliminates PIT surtaxes and would adjust income tax brackets accordingly. The result will be higher taxes for higher income earners. For example, an Ontarian earning $95,000 will see their tax bill increase by $168 per year.
Debt Retirement Charge finally retired
The government has finally removed the debt retirement charge from commercial hydro bills - a key CFIB recommendation on the energy file that will provide modest but much needed electricity cost relief.
Jobs and Growth Plan
The budget promises to enhance the Jobs and Prosperity Fund by $900 million over 10 years to provide financial support for businesses looking to grow. IN addition, the Ontario Training Bank would help connect you with talent and asses skills training needs. These measures address long standing CFIB recommendations to help alleviate the shortage of qualified labour.