Ontario Spending on Tax Cuts for Business

The 2010 Budget continues the government’s spending on corporate tax cuts, with a reduction in the rate from 14% to 12% this year and 10% next year. The Small Business tax is lowered to 4.5% and the Small Business surtax is eliminated.

Here is the government’s comment on this in its media release 3 June 2010:

TAX CUTS FOR BUSINESS
Starting July 1, 2010, the government will be providing tax cuts totalling more than $4.6 billion over three years for large and small businesses:
• The general Corporate Income Tax (CIT) rate will be lowered from 14 per cent to 12 per cent and then to 10 per cent over three years;
• The Corporate Income Tax rate on income from manufacturing and processing, mining, logging, farming and fishing will be lowered from 12 per cent to 10 per cent;
• The small business Corporate Income Tax rate will be cut from 5.5 per cent to 4.5 per cent;
• The small business deduction surtax of 4.25 per cent will be eliminated.
• These tax cuts are in addition to the more than $1.6 billion in annual savings for businesses from the elimination of the Capital Tax on July 1, 2010.

In fact, Table 2 in the Ontario government’s Ontario Tax Plan for Jobs and Growth (page 15) itemizes $8.4 billion in annual savings that will accrue to the business sector from the introduction of the HST, cuts to corporate taxes and elimination of the capital tax, when fully implemented.

That's $8.4 billion annually that could otherwise be used to reduce the deficit, or pay for public services that benefit everyone.

dallan@cupe.ca

Comments

Ford government fails to respond to 72% increase in COVID inpatient days, deepening the capacity crisis

COVID infections continue to drive up hospital costs and inpatient hospitalizations in Ontario. For the most recent fiscal year (April 1, 2022- March 31, 2023) hospital stays related to COVID cost $1.221 billion, according to new CIHI data. This is about 4% of total hospital spending, creating a very significant new cost pressure beyond the usual pressures of population growth, aging, inflation, and rising utilization. Costs for COVID related hospitalizations increased 22.2% in Ontario in 2022/23 from the previous fiscal year, rising from $999 million to $1.221 billion. That rise is particularly notable as the OMICRON spike of late 2021 and early 2022 had passed by the the 2022/23 fiscal year. The $222 million increase in COVID hospitalization costs came in the same year as the Ford government cut special COVID funding and, in fact, cut total hospital funding by $156 million. In total, there were 60,653 COVID hospitalizations...

The long series of failures of private clinics in Ontario

For many years, OCHU/CUPE has been concerned the Ontario government would transfer public hospital surgeries, procedures and diagnostic tests to private clinics. CUPE began campaigning in earnest against this possibility in the spring of 2007 with a tour of the province by former British Health Secretary, Frank Dobson, who talked about the disastrous British experience with private surgical clinics. The door opened years ago with the introduction of fee-for-service hospital funding (sometimes called Quality Based Funding). Then in the fall of 2013 the government announced regulatory changes to facilitate this privatization. The government announced Request for Proposals for the summer of 2014 to expand the role of "Independent Health Facilities" (IHFs). With mass campaigns to stop the private clinic expansion by the Ontario Health Coalition the process slowed. But it seems the provincial Liberal government continues to push the idea. Following a recent second...

The hospital crisis: No capacity, no plan, no end

While Canada has achieved universal public healthcare coverage, that does not mean conservative forces have given up trying to erode that coverage and expand corporate care where it does not currently exist. The battle has become particularly intense in Ontario under the Ford Progressive Conservative government, which is implementing serious cuts to the level of care and moving to bring in for-profit mini-hospitals. Inadequate Staﬃng. Less and less of hospital spending is on staff. Employee compensation as a share of hospital expenditures has consistently shrunk in Ontario. This is not some immutable law of hospital development. It is in stark contrast with the rest of Canada, where compensation has become a larger share and now accounts for 67.1%. Hospitals in provinces other than Ontario now have 18 percent more staﬀ per capita than hospitals in Ontario. Overall, if Ontario had the same staﬃng capacity as the other provinces and territories, there would be another...

Defend Public Healthcare

Search This Blog