Cutting second tax bracket by 20% will put more money in pockets of middle class families
TORONTO – Ontario PC Leader Doug Ford today announced that an Ontario PC Government will put more money in the pockets of middle class families by cutting the second provincial income tax bracket by 20%.
“Our plan takes more out of the hands of government and out of the pockets of connected insiders and elites,” said Ford. “Because we understand that this money belongs to you, and is best spent by you.”
An Ontario PC Government will deliver a targeted tax cut to Ontario’s second tax bracket, with the biggest relative savings realized by those earning $42,960 to $85,923 per year.
“Our plan will save taxpayers as much as $786 per year,” said Ford, “this is just one more way an Ontario PC Government will put more money back in your pocket.”
Ford’s announcement was the latest in a series of measures that will put more money in the pockets of Ontario families. They include:
- Reducing Hydro Bills by 12%, saving the average family $173 per year.
- Introducing a minimum wage tax credit that ensures minimum wage earners pay no provincial income tax, saving low-income earners as much as $850 per year.
- Introducing a child care rebate that respects parents to make their own child care decisions, with rebate of up to 75% on child care expenses, saving parents up to $6750 per child.
- Eliminating Kathleen Wynne’s ‘cap-and-trade’, saving drivers over four cents per litre at the pump.
“The other parties want to tax more, spend more and force you to pay more,” said Ford. “We are the only party who understands how hard you work and how much you pay.”
“For all the people out there who are struggling to get by because of Kathleen Wynne’s higher hydro bills, higher taxes and higher fees, I have a clear message for you,” Ford concluded. “Change is coming and help is on the way.”
Backgrounder – 20% Middle Class Tax Cut
- Ontario has lost its traditional above-average income status in Canada.
- In the 1990s, Ontario’s average income was 10% above the national average, but in 2012, incomes in Ontario fell below the national average for the first time ever.
- Between 2005 and 2015, Ontario families saw the slowest rate of income growth of any province in Canada.In fact, during that period, median individual income in Ontario grew 3.8% while, in Canada, total average income rose by 12.7%.
- Ontario’s median household after-tax income rose by 5.9% in those years (2005-2015), despite the growth of 11.3% for Canada as a whole. Over that same period, employment income for Ontario workers actually declined by 2.3% – the only negative growth rate among all provinces.
- We know how hard taxpayers work for their money. You shouldn’t be paying more than you need to.
- You deserve a government that is working for you and respects your hard-earned dollars.
How We Will Fix It:
- A Doug Ford-led Ontario PC Government will introduce a 20% income tax cut for the middle class.
- This tax cut will benefit the second, middle class tax bracket, which are earners between $42,960 and $85,923.
- This means, the current rate of 9.15% for these income earners will drop to 7.32%, and save taxpayers as much as $786 a year.
- That’s more money in your pocket to spend on your priorities.
- The Ontario PCs will put more money in your pocket. This tax cut adds to the money-saving measures a Doug Ford Government will introduce, which includes:
o Lower hydro bills by 12 – an average saving of $173 per year.
o Minimum wage tax credit, saving minimum wage earners as much as $850 per year.
o Childcare rebate that returns up to 75% of childcare costs back to parents.
o Scrapping the Cap and Trade scam, which will save families $285 per year.