NEWS RELEASE
TIMMINS CHAMBER OF COMMERCE
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The 2018 provincial budget adds significantly to the rising cost of doing business in Ontario, adding nearly half a billion dollars in new taxes for entrepreneurs at a time where they already face numerous challenges, according to the Timmins Chamber of Commerce. Presented on March 28 by Finance Minister Charles Sousa, the pre-election budget includes measures that mirror recent federal corporate tax changes on income splitting, as well as passive investment income, which phases out small business deductions for certain earners.
Combined with new budget measures that also propose to tighten businesses’ eligibility criteria for the Employer Health Tax, this will translate to $495 million in new taxes on Ontario businesses over three years.
“While there are some elements in the budget that we’re happy to see, these new tax measures will only add to the cumulative, growing burden of doing business in Ontario,” said Timmins Chamber President Jamie Clarke. “The speed with which recent labour law changes were introduced through Bill 148 left businesses with little time to adjust their operations, creating considerable uncertainty and obstacles that many are still struggling to overcome. Rather than providing relief to businesses reeling from these changes, these tax measures will instead create additional and unnecessary financial challenges.”
However, Clarke added that there are some positive measures of interest to Timmins businesses in the budget, including:
• Expansion of the Northern Ontario Heritage Fund by 50 per cent, increasing its budget to $150 million by 2020-2021;
• $500 million over three years to expand broadband in rural and northern communities;
• Improved labour market information portal with real-time updates, and
• $3 million in Connecting Link funding for Timmins for reconstruction of Highway 101, as previously announced.
These items, and the expansion of the Northern Ontario Heritage Fund in particular, stand as important means of strengthening the economic future of the North, and will certainly prove beneficial for Timmins’ economy, said Clarke. However, with these additions and several new big-ticket programs, Ontario is marking a return to deficit in this budget.
This year’s budget marks a $6.7 billion deficit, adding to Ontario’s existing $308-billion debt at a time where interest payments represent Ontario’s third-largest expense at $12.5 billion per year. The budget also indicates there is no plan to get back to balance until 2025 -- an approach that threatens Ontario’s long-term economic stability, says Clarke.
“Although we recognize the importance of investing in Ontario, this must be done in a way that is responsible and that protects the value of every single dollar. That means having a realistic, practical plan for bringing our spending into balance, and making sure that our investments help our businesses and our province as a whole to be more competitive.”
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