(March 23 – 17:45 ET) – Ontario’s new Finance Minister and Deputy Premier, Jim Flaherty, continues to stress the importance of tax cuts to the government’s budget strategy to keep the province’s economy buoyant.

Ontario’s economy has boomed in the past couple of years, generating 6.1% growth in 1999 and 5.5% growth in 2000, but now that is expected to slow to between 2% and 3%, he said. Flaherty made the remarks in a speech to the Mississauga, Ont. Board of Trade

“If there is one constant in the equation it has to be tax cuts. When we cut corporate income tax rates, you our more money into your businesses. You hire more people. You are more productive. When we cut personal income tax rates, you have more money in your pockets. More money to spend on goods and services. More money to put back into the economy.”

He contends that tax cuts also attract investment. By 2005 the combined Ontario and federal corporate income tax rate will be more than 10% lower than the average rate of the U.S. Great Lake States, he added.
-IE Staff