(July 4 – 15:40 ET) – Ernie Eves, Ontario Minister of Finance, is trumpeting July tax cuts for the fifth year in a row.
Beginning July 1 the following cuts take effect:
- the lowest income tax rate is reduced by an additional 5%
- the middle rate will be cut by an additional 7%
- non-refundable tax credits have been boosted
- working single parents with young children will receive a new annual benefit of up to $210 per child
- and Ontario’s lowest income seniors with 10 years residency in Canada will be eligible for the GAINS (Guaranteed Annual Income System).
“We’ve cut taxes 166 times since we came into office,” Eves said. “This has strengthened the economy and allowed us to balance the budget, begin to tackle the debt and invest in health care, our children and our communities.”
The ministry says that cuts from 1999 and 2000 will combine to produce an average personal income tax saving of 23.5%. The lowest-income individuals will receive the highest proportion of savings.
“Cutting taxes continues to play a large role in fostering economic growth and job creation in the province,” Eves said. “Last year alone, 198,000 jobs were created in Ontario. Since we began cutting taxes, close to half of all the new jobs created in Canada have been in Ontario.”