Ontario Premier Brings Forward Tax Cuts To Protect Economy

by Mike Godfrey, Tax-News.com, Washington

03 October 2001

Canada's Ontario Premier, Mike Harris, has announced that the government has decided to bring forward the timetable for its tax cuts package in order to protect the province from the knock-on effect on the economy in the wake of the September 11 terrorist attacks on the US. The package will now be effective immediately - three months earlier than planned.

Personal income tax rates have now been cut from 6.2 per cent to 6.05 per cent of taxable income below C$30,814 and from 9.24 per cent to 9.15 per cent of taxable income between $30,814 to $61,629.

Ontario's small business tax rate has also dropped from 6.5 per cent to 6 per cent and the corporate tax rate has also been cut from 14 per cent to 12.5 per cent.

'I know that, three weeks later, Ontario families are still concerned about the events of September 11 and their impact on our province,' said Harris. 'We are taking steps to make it even more safe and to ensure that our economy continues to grow and create jobs.'

'I believe they are now more important than ever before to show our faith in the tremendous growth potential for Ontario as well as the entrepreneurial sprit and productivity of Ontario's workers,' he added.

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