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Newly Elected Government ‘Reintroduces’ Ontario Budget and Retains Income Tax Increases

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Newly Elected Government ‘Reintroduces’ Ontario Budget and Retains Income Tax Increases

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The original May Budget was rejected by opposition parties. Fresh from their win, the newly elected liberal government have reintroduced the measures – this time as the July Budget (essentially the same as the May Budget).

The headline items are:

  • an increase in personal income tax on incomes in excess of CAD$150,000 – 12.16% applied to salaries between CAD$150k-220K and 13.16% to salaries earned in excess of CAD$220K
  • from 2017, an Ontario Retirement Pension Plan (ORPP) will be made available for employees without a workplace pension plan and will require matched contributions from the employee and employer of no more than 1.9% each on a maximum salary of CAD$90k
  • phase-out or elimination of the “small business deduction” for certain large Canadian-controlled private corporations (CCPCs) and a new Ontario Retirement Pension Plan

Article supplied by Radius

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