Ralph Moss Limited

SMART MONEY MOVES
ONTARIANS NOW HAVE MORE TO SAVE,
SPEND, OR INVEST

January 17 1997 marks the second stage of our government's tax cut for every hardworking Ontario taxpayer, a move that will further encourage private sector job creation

Personal Income Tax Rate Cut

• On January 1, the second stage of the personal income tax rate cut announced in the 1996 Budget came into effect Fully half of the promised 30 per cent personal income tax rate cut has been delivered, as promised This will mark the second time in six months that Ontario taxpayers will see an increase in their lake-home pay
  
  
• Since the first phase of the tax cat in July of 1996, 67% of the jobs created in Canada have been created in Ontario.
  
  
• When the Ontario government has fully implemented the tax cut in three years:
  • 91% of all taxpayers will see a 30% reduction in their provincial tax rates
  • All taxpayers with in comes of $60,000 or less will see their Ontario tax raates fall by 30% or more
  • 64% of the benefits from this tax cut will be concentrated on middle-income Ontarians earning between $25,000 and $75.000 a year
  • The top marginal rate in Ontario will be reduced to 49.6 cents for every dollar earned, the third lowest in Canada

Cutting the Emplyer Health payroll Tax (EDT)

• As of January 1, the Ontario government has cut the Employer Health payroll Tax for all private sector employers

• Payroll taxes kill jobs The government is committed to making the first $400,000 of payroll for private sector employers exempt from the EHT. This tax cut will be phased in over three years:
  • - $200,000 exemption effective january 1, 1997
  • - $300,000 exemption effective January 1, 1998
  • - $400,000 exemption effective January 1, 1999
    
    

• Small businesses create most of the new jobs in our economy, yet they faced the highest on-going marginal EHT rates when hiring new employees This discouraged hiring in the sector where most new job growth occurs.
  
  
• After January 1, 1999, fully 88% Of all private sector employers will no longer pay the EHT, or be required to file a return