Tough choice to make

Election day in Ontario—June 7—is now just two weeks away and voters have to vote for one out of main contenders, with Green Party too trying to make a dent.  Liberals are being led by Premier Kathleen Wynne and is trying to defend the 15 years role of Dalton McGuinty and Kathleen Wynne. At the same time, Ontario NDP has high hopes from Andrea Horwath as this happens to be her third campaign. Doug Ford as the newly appointed leader of the Progressive Conservatives, is leading a party that feels it has its best chance now but has a leader who is attempting the provincial politics for the first time.

The leaders and the candidates are going all out to offer pledges to the voters and we here look at the what the parties are trying to offer in the form of proposed taxes. The Liberal party being the incumbent had started luring the voters even when it presented the budget. In the budget only, the Liberal party decided to do away with the surtax (a tax levied on income taxes that kicks in for those earning higher incomes), and opted for readjusting the tax brackets and thus giving a relief to the tax payer and a hope to the voters. Liberals believe that with these changes, close to 8.6 million people would have to pay the same tax, while close to 700,000 could see a tax cut close to $ 300, and 1.8 million could be taxed more an average of $ 200. At the same time, there would be change to the corporate tax. While focusing on health and economy, a tax hike on cigarettes in 2019 of $ 4 carton following two years of increase is also on the agenda.

Doug Ford has promised that if Progressive Conservatives are voted to power, he could shrink government and reduce taxes. His emphasis is more of corporate than the common Ontarians. Ford has pledged to scrap the Liberal’s plan for minimum wage hike from $14 to $15  next year. Doug Ford has proposed to introduce income tax credit for workers earning minimum wage so that anyone earning less than $ 28,000 a year wouldn’t have to pay any tax. Doug Ford has promised to even cut the corporate tax from 11.5 percent to 10.5 percent in an attempt to attract new business. His ultimate objective of creating more employment seems to come through generating more business. Doug Ford has also promised to cut middle class income taxes by 20 percent for those earning roughly $ 43000 to $ 86000. He also intents to cut the gasoline taxes. He plans to end the 4.3 cent a litre carbon tax along with 5.7 cent reduction in the province’s fuel tax. Ford has committed that an Ontario PC Government will amend the Assessment Act, which governs the property tax system, to specifically exempt all Ontario Royal Canadian Legion branches from paying property tax, being a proud member of the Royal Canadian Legion Coronation Branch 286.

Doug Ford has announced too many cuts that may appeal to certain Ontarians but many have been left wondering on what kind of provisions will he make to compensate the exchequer. If voted to power, will Doug Ford be able to provide a stronger economy? On the other hand, NDP has plans to control the deficit in the budget through increasing certain taxes. NDP plans to increase the corporate tax from 11.5 percent to 13, while following the Liberal’s line of reducing the tax for the small business. If it has taken a lead from the Liberals here in Ontario for corporate taxes, it has also taken a leaf out of its government in British Columbia. NDP proposes to have a speculation tax targeting Canadian and foreign home buyers.  A balanced approach on the taxes, with an attempt to control the budget deficit also.  The Green Party not to be left behind has also tried addressing taxes to lure voters. Green Party plan to lower payroll taxes for business and raise royalty rates for companies making money from mining. Green Party also has plans to reduce property speculation by taxing vacant properties.

With too much to choose from proposed taxes, Ontarians could have a difficult task to decide among the various offering by the parties.