Ontario Chamber Report – The Ontario Chamber of Commerce (OCC) is urging the provincial government to keep its promise to reduce corporate income tax (CIT) rates to 10 percent by 2013, amidst reports that the government is considering delaying the tax reduction. In its letter to the Hon. Dwight Duncan, the OCC asks the Minister of Finance to commit to implementing its comprehensive tax package in full.
A reduction in Ontario’s CIT rate is an essential part of the province’s tax reform package, designed to create jobs and foster economic growth in the province. According to a report by Jack Mintz of the University of Calgary, Ontario’s comprehensive tax reform package will create 591,000 jobs and increase capital investment by $47 billion.
The planned CIT rate reduction is important to securing much needed Foreign Direct Investment (FDI) into Ontario. According to a joint study by Harvard University and the World Bank, on average, a tax rate decrease of one percentage point results in a 3.3 percent increase in FDI inflows.
The OCC is urging the provincial government to fully implement its comprehensive tax package and to work cooperatively with its partners in the private sector to find ways to create jobs and grow Ontario’s economy.
About the OCC – For 100 years the Ontario Chamber of Commerce (OCC) has remained a strong advocate for Ontario businesses. As a membership organization, its lobby efforts are informed by local chambers of commerce, boards of trade and businesses of every size, in every sector who collectively make the most relevant and influential network in the province – 60,000 strong. To learn more about the OCC and what key policy issues are impacting Ontario’s business community visit www.occ.on.ca.