The major highlight of the 2009 financial budget is so called "harmonization" of taxes which carries a serious risk of a consumer backlash. As of July 1,2010, most of Ontarians will pay a single 13% tax, i.e. blending 8 per cent provincial sales tax with the 5 per cent federal GST. This budget is clearly aimed at helping the business and low income families. Though new home/condo buyers will feel the extra pinch.
Financial Budget Highlights:
- Spending plan - $108.9 billion.
- Deficit - $14.1 billion.
- Single sales tax - 13% as of July 1,2010.
- Infrastructure spending $27,5 billion plus an additional $5 billion in federal funding to create 300,000 jobs.
- $1000 payouts - to all families earning $160,000 or less annually, singles receive $100 cheques.
- Business save $500 million in paper works costs due to harmonization of taxes.
- 100% tax right off on new computers for manufacturers and small businesses.
- Child tax benefit for low-income families- raised from $600 to $1000 as of July.
- Income tax cuts for 93% of Ontarians.
- Corporate Income tax rate - drop from 14% to 12% and then to 10% in 2013.
- Small business tax rate - drop from 5.5% to 4.5%.
- Manufacturing and processing- drop from 16.7% to 12% and then to 10%.
- Freezing MPPs pay for a year.