ARTICLE
26 March 2008

Ontario’s 2008 Budget Tabled

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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".
Canada Tax

Originally published March 25, 2008

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in recent weeks by economic analysts, there were no personal tax reductions, nor was the controversial health premium repealed.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 economic plan.

To access the government’s budget documents, please visit: http://ontariobudget.ca/english/papers_all.html

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