Harmonization is, quite simply, the single most important thing we can do to create jobs and grow our economy.
Literally, HST stands for “harmonized sales tax.” It would combine the current federal GST and provincial PST into a single tax.
Our current system is outdated and burdensome. Businesses currently spend an extra $500 million a year submitting two sets of tax forms to two different levels of government. That doesn’t make sense.
A harmonized sales tax is good for business, and it’s good for our economy. And our income tax reform, which includes permanent income tax cuts (benefiting 93% of Ontario taxpayers), rebates, and credits, are good for Ontario families.
Here’s why: - All Ontario taxpayers would see a 16.5% cut in the tax rate on their first $36,848 of taxable income—the lowest rate of any province in Canada.
- Ontario families and individuals with up to $80,000 of income would get an average personal income tax cut of 10%.
- Eligible families (including single parents and senior couples) with an annual income below $160,000 would receive three payments totaling $1,000 throughout the transition period.
- Eligible individuals with an annual income below $80,000 would get three payments totaling $300 throughout this period.
- Our new, permanent sales tax credit of up to $260 for each adult and child per year will benefit almost 3 million low-income Ontario families.
- And 90,000 Ontario taxpayers with low incomes would pay no Ontario personal income tax thanks to our tax reforms.
Our tax reform package is a comprehensive solution that will help our economy in these challenging times, while helping families through the transition and providing permanent personal income tax cuts. It’s good for business, and it’s good for families.
Learn more about the HST.