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McGuinty Government invests
$3 Billion to support a competitive Ontario -
Dec. 14, 2007
Ontario’s strong and resilient economy continues to grow
QUEEN’S PARK – The McGuinty government is taking immediate action to
strengthen Ontario’s economic advantage through a $3-billion package of
business tax measures and investments in skills, training and
infrastructure Carol Mitchell, MPP Huron-Bruce announced today.
This package moves forward on the government’s five-point plan for
economic competitiveness and will particularly help people and
communities facing economic challenges.
“The Ontario economy has proven resilient in an increasingly challenging
global economic environment. However, certain sectors that are key to
the economic stability of Huron-Bruce, such as manufacturing,
agriculture and tourism, still face serious challenges,” said Carol
Mitchell, MPP Huron-Bruce. “This fall economic statement will help these
sectors adjust to a changed economic environment.”
Ontario’s economy has been challenged by external factors, including a
slowing U.S. economy, record-high oil prices and a stronger Canadian
dollar. In response, the McGuinty government proposes a package of tax
measures and infrastructure investments to enhance competitiveness,
strengthen Ontario’s communities and create jobs.
Agriculture was a key issue in the fall economic statement with the
announcement of an investment of $150 million to strengthen
competitiveness and help cattle, hog and horticulture farmers.
Approximately $100 million of this investment will be dedicated to the
cattle and hog industries with approximately $30 million for
horticulture and the remaining $20 million going towards a variety of
initiatives aimed at creating a more sustainable future for the
agricultural sector.
In the 2007 Economic Outlook and Fiscal Review released today, the
government is proposing $1.1 billion in tax reductions for business over
three years that would support manufacturers and other sectors,
including:
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eliminating the Capital Tax on January 1, 2008
for corporations primarily engaged in manufacturing and resource
activities;
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providing a 21 per cent Capital Tax rate cut for
all businesses retroactive to January 1, 2007, on the way to full
elimination in 2010; and
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increasing the small business deduction threshold
to $500,000 from $400,000 – retroactive to January 1, 2007.
The package introduced today would also provide:
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$1.4 billion in new funding to build strategic
infrastructure;
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almost $300 million over three years to expand
the Land Transfer Tax Refund Program
for First-time Homebuyers to include purchases of resale homes;
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$50 million in strategic investments in
innovation;
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$40 million to provide skills development and
rapid re-employment services for laid-off workers through the
$1-billion Employment Ontario training system; and
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$30 million to expand the Ministry of Tourism’s
successful festivals and events promotion and marketing campaign in
the domestic and international markets.
In spite of external factors, the Economic Outlook
indicates Ontario’s economy is on track to outperform the 2007 Ontario
Budget forecast.
Ontario’s continued economic strength allows the government the
flexibility to implement targeted measures, particularly for
manufacturers, and to invest in our communities through improved
infrastructure.
Despite inheriting a structural deficit of $5.5 billion in 2003-04, the
Economic Outlook confirms that the Province’s budget is balanced. If the
reserve is not required, a
$750 million surplus is projected for 2007-08. Despite weaker
projections for economic growth in 2008 and 2009, Ontario is on track
for continued balanced budgets.
“The people of Ontario want us to be prudent fiscal managers and to
pursue real progress at the same time,” said Dwight Duncan, Ontario’s
Minister of Finance. “The people of Ontario are counting on us to move
Ontario forward. That is what our plan is about.”
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For more information, please
contact:
Carol Mitchell. MPP
Huron-Bruce
519 482-5630 |
