Under the NDP plan, small businesses get fleeced to make government bureaucrats rich.
Despite their rhetoric of only taking tax money from the ‘rich,’ it turns out the Ontario NDP are planning a 12.7% tax hike on Ontario’s small businesses.
Over five years, that small business tax hike would take $224 million out of the pockets of Ontario’s Mom & Pop shops.
In a release, the Ontario PC Party ripped the NDP tax hike plot:
“Small businesses are the backbone of our community. They are being pushed to a breaking point by an out of touch Wynne Liberal government, and it’s clear they can’t afford an NDP government that will be ten times worse,” said Vic Fedeli. “Under an NDP government, businesses will have no choice but to bolt lock their doors, shutter their windows, and ship their jobs south of the border.”
NDP tried hiding their huge small business tax hike
Rather than being honest with the people about their plan to fleece small businesses, the NDP tried hiding it deep in their falsely-costed platform.
The Ontario PCs went into detail to expose the tax hike:
“What the NDP has not told Ontarians is they also plan to raise small business taxes by 12.7%. In Ontario, the small business tax rate applies to the first $500,000 a company earns.
When the government reduced the small business tax rate by 22.2% they booked a fiscal cost of $150 million in 2019-20.2
That means the remaining small business tax revenue is worth roughly $526 million per year. In the 2018 budget – and every budget before that – the revenue from corporate income taxes includes the revenue from the small business tax rate. That is shown as one number below:
Therefore, in 2019-20, this number of $15.6 billion, includes roughly $526 million of small business tax revenue.
The NDP, when calculating how much they would raise from increasing the corporate tax rate by 8.7% in that fiscal year did not remove the small business tax rate. This is clear as 8.7% of $15.6 billion is $1.357 billion – the exact number in the NDP’s fiscal plan.
If they would have exempted small businesses from this tax increase, their number would be approximately $45 million less.
In every year moving forward, the NDP repeats this error and does not exempt small businesses from this tax increase.
At a minimum this tax increase is worth $45 million per year in 2019-20 and 2020-21 and worth roughly $67 million in 2021-22 and 2022-23.
Therefore, over the course of the NDP’s five-year plan, they have raised small business taxes by $224 million despite telling the public repeatedly that they are only taxing big business.”
The PCs are actually being nice by saying it’s an “error.”
The Ontario NDP will absolutely unleash massive tax increases if they get into office, enriching elitist government bureaucrats at the expense of Ontario families and small businesses. The socialists never met a tax they didn’t want to raise, and ripping more money away from small businesses is certainly something the NDP would do.
Photo – YouTube