Tag: Provincial Budget

Further Offset Measures Needed in Upcoming Budget to Keep Ontario Competitive

2018 Provincial Pre-Budget Submission


The Ontario Chamber Network calls for tax reform, smart spending to support Ontario businesses

Today the Oakville Chamber of Commerce, in partnership with the Ontario Chamber of Commerce, provided the Ontario government with 11 recommendations for the upcoming provincial budget that will help businesses manage costs and secure the province’s competitive advantage. The submission, presented to the Standing Committee on Finance and Economic Affairs, calls on the government to implement taxation reforms and smart infrastructure and transportation spending to maximize growth and benefit all regions of Ontario.

As the cost of doing business in the province continues to increase, and Ontario employers take on one of the largest wage increases in recent history, Ontario’s Chamber Network is recommending the government reinstate the scheduled corporate income tax rate from 11.5 per cent to 10 per cent. The submission also calls on the harmonization of the Business Education Tax across the province, as well as targeted reductions to the Employer Health tax.  

“Employers in Oakville of all sizes are feeling the pressure from rising costs, and more than ever our local business communities are lacking confidence in the future of Ontario’s economy,” said John Sawyer, President, Oakville Chamber of Commerce. “The recent minimum wage and labour and employment standard changes will cost Ontario businesses an estimated $23 billion over the next two years. We need more support for business and the government’s commitments made in last year’s Fall Economic Statement are simply insufficient.”

The pre-budget submission also recommends that the government create additional small business deduction tax brackets, as well as delay taxation on corporate income growth to overcome the scale-up challenge.  Currently, all businesses with an annual income of $500,000 or less are taxed at a flat rate. A bracketed taxation system would give startup and SMEs more room to grow. Currently in Ontario, 71 per cent of private sector jobs can be attributed to the activities of small and medium sized enterprises.

“Ontario needs a competitive taxation system, that encourages investment and minimizes red tape, must be in Ontario’s long-term strategic plan,” said Mr. Sawyer. “As the U.S. pursues tax reform that would lower their federal corporate tax rate by 15 per cent, and with the uncertain future of NAFTA, we must find ways to keep Ontario competitive.”

The Ontario Chamber Network also encourages members of the committee and government to consider how are we leveraging Ontario’s greatest asset—human capital.

The recommendations outlined in the Ontario Chamber’s pre-budget submission all come directly from Ontario’s Chamber Network through policy resolutions at the Ontario Chamber of Commerce Annual General Meeting.

Read the full submission and all 11 recommendations.



Provincial Budget 2017: Back to Balance But Not Prudence

The Ontario Chamber Network challenges government to clarify where business growth will come from  In response to Budget 2017, the Ontario Chamber of Commerce and the Oakville Chamber of Commerce today expressed concern that there is no clear path for long-term fiscal prudence, while commending the government for Ontario’s first balanced budget since the global recession.

While there is no deficit over the planning period, there is also no plan for surplus. Given that, downward payment on the debt will be pushed beyond the medium-term. This will place tremendous fiscal burden on future generations and considerable pressure on future economic planning. “Budget 2017 demonstrates that much of Ontario’s fiscal outlook will depend on the prosperity of our private sector,” said Richard Koroscil, Interim President & CEO, Ontario Chamber of Commerce. “The government acknowledged that business investment spending slowed in 2016, though expects firms to increase investment by 3.1 percent, annually, to 2020 – an amount that would outpace growth in real GDP growth and household spending. These assumptions depend upon business confidence – which has fallen precipitously in recent years according to the Ontario Economic Report – and U.S. demand, which is subject to considerable risk given recent comments by American President Donald Trump.”

Ontario’s revenues rely on the level and pace of economic activity of the province, but Budget 2017 offers limited vision for how to ensure that private-sector economic growth will continue to rise. Promised Corporate Income Tax rate relief, which the government paused following the economic downturn, were not reinstated. In the 2009 budget, the province pledged to reduce the Corporate Income Tax (CIT) rate to 10 percent by 2013. Within ten years it was estimated that the value of this CIT reduction would see Ontario benefit by increased capital investment of $47 billion, increased annual incomes of $29.4 billion and an estimated 591,000 net new jobs. However, the CIT reduction promise was halted in 2012 in light of the province’s deteriorating fiscal situation, and so the CIT rate remained at 11.5 percent.

One bright spot in Budget 2017 were details provided around the clear commitment by Ontario’s private sector to providing job growth for the province. The budget suggests that 98 percent of all new jobs since the recession in Ontario have been full time, and 78 percent in above-average wage industries. This positive economic activity by Ontario’s private sector demonstrates a clear commitment to good, quality jobs throughout our province. “Government must listen to its own budget document on the consistent creation of high-quality jobs when they consider the final report of the Changing Workplaces Review, expected in the coming weeks,” said Koroscil. “While Premier Wynne and others have recently spoken about the rise of part-time work and concern over precarious work more generally, Budget 2017 states that the majority of the jobs created since the recession were in industries that pay above-average wages, in the private sector and in full-time positions.”  

Key Points for Ontario’s Business Community:
  • Ontario will not return to planned Corporate Income Tax cuts, jeopardizing tens of billions of dollars in potential capital investment and hundreds of thousands of news jobs.
  • While there is no deficit over the planning period, there is also no plan for surplus. Ontario’s debt will rise by 21 per cent in the next three years as a result of interest charges, with no plans to begin debt repayment.
  • 98% of all new jobs since the recession in Ontario have been full time, and 78% in above-average wage industries. This positive economic activity by Ontario’s private sector demonstrates a clear commitment to good jobs throughout our province and challenges many recent comments about precarious work and the need for the Changing Workplaces Review.
  • Private sector investment is predicted to grow by 3.1 per cent, annually, to 2020, an amount that would outpace growth in real GDP growth and household spending.
Read the Ontario Chamber of Commerce’s breakdown of the Budget for Business. Read the 2017 Provincial Budget.

Oakville Chamber to host Breakfast and a Conversation with Patrick Brown

The Oakville Chamber of Commerce will host the Leader of the Official Opposition and Leader of the PC Party of Ontario at a special breakfast on Tuesday, April 18. The event, which begins at 7:30 a.m. at Glen Abbey Golf Club, will include breakfast, a keynote presentation by Patrick Brown, and a moderated Question and Answer Forum.

The April 18 breakfast will be Patrick Brown’s first public address to the Oakville Chamber of Commerce, their members, and the Oakville business community. He will discuss Ontario’s 2017 budget, hydro challenges for business, infrastructure needs, red tape and more. “We are pleased to be presenting our members with the opportunity to hear directly from the Leader of the Official Opposition and Leader of the PC Party of Ontario” stated Caroline Hughes, Chair of the Board, Oakville Chamber of Commerce.

“As a strictly non-partisan organization we invite guest speakers, like Patrick Brown, to provide an opportunity for our members and their guests to hear directly from key decision makers. We also want to provide our members with the opportunity to discuss key issues with senior elected officials.” The Oakville Chamber of Commerce invites Oakville Chamber members and the greater Oakville community to attend. The event is proving to be quite popular, as it is almost sold out!

Event Details:
Date: Tuesday, April 18
Time: 7:30am – 8:00am: Registration, networking and hot breakfast buffet 8:00am – 9:00am: Formal Event
Location: Glen Abbey Golf Club, 1333 Dorval Drive
Tickets: $35 for Members, $55 for Non-Members. Tables of 8 available.
Register now!