The Canadian Taxpayers Federation is applauding the Ford government’s move to cut income taxes for low-income Ontarians, but it’s disappointing that there’s no broad-based tax relief or clear plan to eliminate the province’s budget deficit.
“The brightest point of the Ford government’s budget is targeted income tax relief,” said CTF Ontario Director Jay Goldberg. “More than one million Ontarians are going to be paying lower income taxes because of the Ford government’s move. As Ontarians face soaring living costs, this tax break will make a meaningful difference for a large group of taxpayers, leaving up to an additional $850 in their wallets.”
The budget proposes to extend the Low-Income Individuals and Families Tax Credit to those making less than $50,000 per year, which will allow those individuals to save up to $850 when filing their provincial income taxes.
However, there was no broad-based relief for most Ontario taxpayers.
“Middle class Ontarians are being left behind,” said Goldberg. “The Ford government’s tax relief announced today is a good start, but the government should be looking to extend income tax relief to help millions of other taxpayers.”
The budget includes a $19.9 billion deficit this year and no plan to eliminate the deficit for another five years. The provincial debt will grow to a record $428.7 billion by the end of this fiscal year.
“Thanks to more reckless spending, Ontario taxpayers will be forced to send $13.5 billion in debt interest to bondholders on Bay Street rather than keeping it on Main Street,” said Goldberg.