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Ontario PCs press need for corporate tax cuts

Jan 12, 2012
By Jonathan Jenkins, QMI Agency

TORONTO -- Ontario's official opposition scrambled to clarify Thursday they remain fiercely opposed to any delay in scheduled cuts to the province's corporate income tax rate.

"We can say that there are some things that are sacrosanct. One of them is you will continue with the reduction in corporate tax rates," Progressive Conservative finance critic Peter Shurman said.

"My caucus colleagues and I are unwavering about lowering business taxes."

Just one day earlier, PC Deputy Leader Christine Elliott said she couldn't say her party would automatically vote against any budget that backtracked on cutting the corporate rate, suggesting instead the party was more focused on its call for a mandatory wage freeze for public sector workers.

"Postponing the corporate tax cuts we've been very clear on that -- we believe they need to be done to stimulate the economy and bring the investment we need to bring the jobs we need to this province," Elliott said.

"So it's obviously a significant point for us but I can't speculate on a vote on a budget right now."

Shurman, though, said the Tories were adamant the cuts need to go ahead as scheduled.
"(Premier) Dalton McGuinty and (Finance Minister) Dwight Duncan are complete hypocrites if they flip flop on their own election promise to lower business taxes to 10% by 2013," he said.

Delaying the cuts could win the minority Liberals the support of New Democratic Party Leader Andrea Horwath's 17-member caucus and guarantee the passage of the budget.
Horwath had called for a rollback of the tax rate to 14% but now she's willing to accept a freeze at its current level of 11.5%.

The pre-budget jockeying -- complicated by the Liberal's minority -- is further muddied as all parties await the recommendations from economist Don Drummond's commission into reforming the public service.

Drummond has already said he's likely to recommend some deep and painful spending cuts but will not be looking at the revenue side of the budget equation.

Forgoing the cuts could mean an additional $2 billion in tax revenue and ease pressure on the province's $16-billion deficit.

 

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