Hamilton, Tuesday, January 16th, 2018 – Today, the Hamilton Chamber of Commerce, in partnership with the Ontario Chamber of Commerce (OCC) provided the Ontario government with 11 recommendations for the upcoming provincial budget that will help businesses manage costs and secure the province’s competitive advantage. The submission, presented to the Standing Committee on Finance and Economic Affairs, calls on the government to implement taxation reforms and smart infrastructure and transportation spending to maximize growth and benefit all regions of Ontario.
As the cost of doing business in the province continues to increase, and Ontario employers take on one of the largest wage increases in recent history, Ontario’s Chamber Network is recommending the government reinstate the scheduled corporate income tax rate from 11.5 percent to 10 percent. The submission also calls on the harmonization of the Business Education Tax across the province, as well as targeted reductions to the Employer Health Tax.
“Employers in Hamilton of all sizes are feeling the pressure from rising cumulative regulatory costs, and more than ever our local business communities are lacking confidence in the future of Ontario’s economy,” said Keanin Loomis, President & CEO, Hamilton Chamber of Commerce. “The recent minimum wage and labour and employment standard changes could cost Ontario businesses an estimated $23 billion over the next two years. In order to stabilize the transition for these costs, we ask the government to significantly build upon the limited commitments made in last year’s Fall Economic Statement.”
The pre-budget submission also recommends that the government create additional small business deduction tax brackets, as well as delay taxation on corporate income growth to overcome the scale-up challenge. Currently, all businesses with an annual income of $500,000 or less are taxed at a flat rate. A bracketed taxation system would give startup and SMEs more room to grow. Currently, in Ontario, 71 percent of private sector jobs can be attributed to the activities of small and medium-sized enterprises.
“Ontario needs a competitive taxation system, that encourages investment and minimizes red tape, must be in Ontario’s long-term strategic plan,” said Loomis. “As the U.S. pursues tax reform that would lower their federal corporate tax rate by 15 percent, and with the uncertain future of NAFTA, we must find ways to keep Ontario competitive.”
The recommendations outlined in the OCC’s pre-budget submission all come directly from Ontario’s Chamber Network through policy resolutions at the OCC’s AGM.
Read the full submission and eleven recommendations here.
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For more information, please contact: Huzaifa Saeed | Policy & Research Analyst | Hamilton Chamber of Commerce | t: 905-522-1151 ext: 230 | e: h.saeed@hamiltonchamber.ca
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