Ontario’s Minister of Finance Dwight Duncan today
tabled the Ontario provincial government’s third
consecutive balanced budget, describing it as a "balance
between quality public service and a competitive tax
system". Highlights include: major investment in skills
training and infrastructure; tax cuts for businesses, seniors,
innovation and green initiatives; and an emphasis on expanding
Ontario’s partnerships with aboriginals, business and
the federal government.
The Minister announced $750 million in tax cuts for businesses
over the next four years including a retroactive elimination of
capital tax for manufacturing and resource firms, a ten year
income tax exemption for companies commercializing innovations
developed by Canadian colleges and universities, and an
accelerated capital cost allowance rate for manufacturing and
processing machinery. The Minister also tabled a new property
tax grant for low and middle class senior homeowners, providing
$1 billion in tax relief between 2008 and 2010.
Citing stronger than anticipated economic growth throughout
2007 and forecasting modest growth for 2008, the Minister did
not introduce any tax increases.
In accordance with the government’s stated goal of
"investing in people", a significant investment in
the "Skills to Jobs Action Plan" was announced along
with a new textbook and technology grant for each college and
university student in the province. Measures designed to
increase access to healthcare were also tabled along with $1
billon in new municipal infrastructure investment.
As forecast in recent weeks by economic analysts, there were no
personal tax reductions, nor was the controversial health
premium repealed. Instead, spending aimed at economic
stimulation was the overriding theme, in accordance with the
Liberal government’s previously announced five-point
BLG’s national Tax Group consists of
approximately 45 tax professionals including several Chartered
Accountants. We serve clients worldwide from our six
Canadian-based regional offices. Our experience spans corporate
tax, international tax, personal tax and estate planning, tax
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The CRA provides new housing rebates for individuals who have purchased or built a new house or have substantially renovated a house or made a major addition to a house who plan on living in it personally or letting a relative live there.
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