Sousa Says Ontario Better For Corporate Tax Than U.S.
NOVEMBER 7, 2017
Today Ontario Finance Minister Charles Sousa spoke to the Toronto Region Board of Trade and indicated that he is "of course" very concerned about NAFTA. He was asked about the impact of reduced US taxes and how they might encourage entrepreneurs to move businesses south of the border.
His response was that Ontario's tax rates compare favourably to the US and therefore businesses were incented to stay put. While the Minister is correct today, he failed to address the massive change in tax rules that is about to hit if the Federal Liberals make the passive investment rule changes. Once that happens successful entrepreneurs will be forced to withdraw any profits not required for working capital or capital additions at a 53% tax rate. At that point Ontario and Canada's advantage is gone.
Hopefully sanity prevails and we don't discourage success in Canada. Let's stick with a system that is balancing taxes and incentives in an appropriate way and is helping encourage entrepreneurship in Ontario.