2009 Ontario budget highlights
TheStar.com – News – 2009 Ontario budget highlights
March 27, 2009
Here are the highlights of the 2009 Ontario budget:
* A $108.9 billion spending plan, with a record $14.1 billion deficit due to plunging tax revenues. For the fiscal year ending next week, Ontario is posting a $3.9 billion deficit, up from the $500 million shortfall predicted last fall.
* A blended 13 per cent single sales tax as of July 1, 2010 encompassing the existing 8 per cent provincial sales tax and the 5 per cent GST.
* $27.5 billion in new provincial infrastructure spending plus an additional $5 billion in federal funding to create 300,000 jobs.
* To offset the fact consumption taxes will rise on everything from Big Macs to homes costing more than $500,000, families earning $160,000 or less annually will receive one-time payouts totalling $1,000. Single Ontarians will receive three $100 cheques for a total $300 windfall.
* The business-friendly blended sales tax is estimated to save corporate Ontario $500 million a year in paperwork costs
* A 100 per cent tax write-off for new computers for manufacturers and small businesses.
* Increasing the annual child tax benefit for low-income families to $1,100 from $600 as of July.
* Income tax cut for 93 per cent of Ontario taxpayers, including an average 10 per cent cut for people earning less than $80,000.
* Corporate income tax rate will drop from 14 per cent to 12 per cent and then to 10 per cent by 2013. Small business taxes will be reduced to 4.5 per cent from 5.5 per cent and the rate for manufacturing and processing from 16.7 per cent to 12 per cent and finally to 10 per cent.
*Freezing MPPs’ pay for a year.
< http://www.thestar.com/article/609197 >.