By MPP Bobbi Ann Brady
While campaigning during the recent unnecessary and costly election, I heard time and again that the Doug Ford-led Ontario PC government has to step up and take concrete action to cut costs for consumers, business, farmers, and families.
So far, much of what the Ford government has done, is make life less affordable and increase our per capita tax burden. As reported recently by The Toronto Sun, the Fraser Institute stated, “inflation adjusted, per capita tax burden in Ontario this year under Ford’s Progressive Conservative government is expected to be $9,406 — 7.7 per cent higher than the $8,736 tax burden imposed on Ontarians in the final year of the Wynne government in 2017-2018. This, in spite of the fact tax revenue for Ford’s government has steadily increased in recent years, now projected at 13.4 per cent compared to the size of the Ontario economy this year, versus 12.1 per cent for the Wynne government in its final year of office.”
With those numbers posted by an ostensibly conservative government, I think it behooves Ford to take direction from his Nova Scotia brethren led by Premier Tim Houston. Houston is following through on his election plan to deliver lower taxes for Nova Scotians.
Houston, prior to Christmas, passed a motion to permanently reduce the provincial portion of harmonized sales tax (HST) beginning April 1, 2025. Nova Scotia’s HST will decrease by one percentage point from 10 per cent to nine per cent. This ranks as the largest tax break in Nova Scotia’s history and the first time in 14 years that a provincial government has amended their sales tax.
Like Ontario, Nova Scotia’s HST combines the provincial sales tax with the federal goods and services tax (GST). The federal portion remains five per cent. While still higher than Ontario’s HST, the new combined sales tax rate in Nova Scotia will allow Nova Scotians to keep more of their hard-earned money.
The Canadian Taxpayers Federation (CTF) applauded the Nova Scotia government for promising real tax relief in their 2025 budget. The CTF figures the tax cuts will save the average taxpayer more than $1,000 in 2025 alone.
Budget highlights also included an inflation-based adjustment to income tax brackets and an increase in the basic personal amount from $8,744 to $11,744.
Nova Scotia also included a reduction in the small business tax rate from 2.5 to 1.5 per cent and an increase in the small business income tax threshold from $500,000 to $700,000. You may recall last year, I called on Doug Ford to immediately increase the Ontario small business tax rate deduction threshold to $700,000, index it to inflation annually, and reduce Ontario’s small business tax rate from 3.2 per cent, beginning with an immediate reduction to at least 2 per cent with a goal of reaching zero. No dice.
While Ford is at it, maybe he can get his Minister of Red Tape Reduction on the job in earnest and push government out of the way of business and farmers. For years, I’ve heard that message repeatedly from farmers and farm organizations. And I heard it again last week at the Grain Farmers March Classic in London (fantastic event with great folks).
It’s time this PC government acts fiscally conservative and responsible like the government in Nova Scotia. Remember Premier Ford, the “C” stands for conservative.
Bobbi Ann Brady is the MPP for Haldimand-Norfolk