In preparation for Ontario annual fall economic statement, Finance Minister, Jim Flaherty, has pledged to keep cutting taxes and balancing Ontario’ budget. “Earlier this year, I delivered a budget in which our government announced multi-year tax cuts. Our critics asked: Is now the right time? Our response? Absolutely. And I say to you again today – we will not waiver. These tax cuts will be implemented,” he said. Flaherty made the remarks at the Toronto Board of Trade, earlier today.

Following Sept. 11, Flaherty noted, the government proposed to accelerate planned personal income, corporate income and capital tax cuts – cutting the general corporate income tax rate would be cut from 14% to 12.5%, the manufacturing and processing rate to 11%, and the small business
rate to 6%.

“The accelerated corporate tax cuts would free up about $115 million in saved taxes, including capital tax, for business. Further, we proposed to eliminate the capital tax on the first $5 million of taxable capital, three months ahead of schedule.”

Flaherty also stressed that it is committed to balanced budgets, even if that involves tapping the $1 billion reserve it has built up. “If itÕs not needed for that purpose – it will be used to pay down the debt.”

“Our government will continue to pursue this prudent course. We will continue to take the common sense, balanced-budget approach to economic prosperity that has served our province so well over the past six years. And we will continue to make the tough choices needed to ensure that OntarioÕs finances do not regress to that dark, pre-1995 state. A priority for our government will always be a strong economy that creates jobs and opportunity for the people of Ontario.”