Ontario continues trend of uncompetitively high personal income tax rates

Fraser Institute

Fraser Institute

TORONTO, Jan. 05, 2023 (GLOBE NEWSWIRE) — Despite promises that provincial personal income tax increases in 2012 and 2013 would be temporary, successive governments have kept them in place for a decade, finds a new study released today by the Fraser Institute. . , an independent, non-partisan Canadian public policy think-tank.

“The recent history of personal income tax rates in Ontario is that tax increases that the government promised would be temporary ended up being permanent,” said Ben Eisen, senior fellow at the Fraser Institute and co-author of Broken Promises: The Persistence of High Personal and Corporate Income Taxes in Ontario.

As a result of federal and provincial tax increases, Ontario now has the third-highest federal/provincial personal income tax rate—states in Canada or the United States—rising from 46.41 percent in 2012 to 53.53 percent. Combined with the federal increases, Ontario’s top income tax rate increased by 7.12 percentage points.

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“Contrary to repeated promises not to raise taxes, the Dalton McGuinty government enacted tax hikes that raised the highest personal income tax rates in the province, also promising that the increase was temporary and would be reversed later—neither he nor his successor, premier Wynne, did. commitment, as the current Ontario government has taken no action,” Eisen said.

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The current government has also failed to deliver on promises to go beyond simply reversing previous tax increases and actually reducing the tax burden on Ontarians. When he ran for office in 2018, the Ford government promised to reduce Ontario’s overall corporate income tax rate, but failed to deliver on that promise.

Eisen commented, “The history of Ontario’s personal and corporate income tax rates is one of broken promises: governments keep promising to lower taxes on Ontarians, but they don’t keep their word.

MEDIA CONTACT:

Ben Eisen, Senior Fellow
Fraser Institute

To arrange media interviews or for more information, please contact:
Drue MacPherson, Fraser Institute
604-688-0221 ext. 721
[email protected]

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The Fraser Institute is an independent Canadian public policy education and research organization with offices in Vancouver, Calgary, Toronto, and Montreal and links to a global network of think tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and widely communicating the effects of government policy, entrepreneurship and choice on their well-being. To protect the Institute’s independence, it does not accept government grants or contracts for research. Visit www.fraserinstitute.org.



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