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Ontario Election – Small Business Effects

June 7, 2018

The Ontario Election and Your Small Business

There are three main issues facing small businesses as we arrive at Ontario election day: small business corporate tax rate, rising hydro costs and increasing minimum wages. Each of these issues has a different effect on small business operations in Ontario. While each major political party claims to have a plan to help small business, they each take a different approach. Be on the lookout for some changes

Progressive Conservative Party of Ontario

According to their website, the OPC party would like to make two changes to the corporate tax rate: the first being a reduction of the tax rate on small businesses with less than $500,000 taxable income from the current 3.5% to 3.2%. The second is a reduction of the general corporate tax rate from 11.5% to 10.5%. Their platform also guarantees a 12% reduction in hydro costs. (DOUG FORD WILL HELP SMALL BUSINESSES CREATE GOOD JOBS, 2018) Although this change was not found on their website platform, Doug Ford has promised to halt the planned hike in minimum wage from $14 to $15 per hour. (Crawley, 2018)

Ontario New Democratic Party

The NDP have said they will maintain the 3.5% corporate small business tax rate, however, they wish to raise the tax rate on the highest earning corporations from 11.5% to 13%. (Fiscal Plan, 2018) Their platform, according to the NDP website, does not mention anything about the minimum wage – presumably, this means they will follow the current Liberal plan to raise the minimum wage to $15 next year. The NDP has promised to cut the average hydro bill by 30%. (Hydro, 2018)

Ontario Liberal Party

The Liberal Party makes no mention of any changes to the corporate tax rate if they are re-elected. They also plan to follow the minimum wage increase they set out for next year. Finally, they mention cutting hydro costs by 25% for residential consumers. (Ontario Liberal Plan, 2018) The Liberal party does not lay out any major changes, which makes sense considering they have been in power for the last several years.

 

Small businesses are continually faced with new challenges that may be difficult to overcome. Hein & Associates are here to guide you through these challenges and make sure that you are properly prepared for the evolving small business landscape. We hope this is an informative article on each party’s position in this upcoming election.

 

Prepared by:
Alex Hein
, CFP
Hein & Associates
Senior Accountant

References

Crawley, M. (2018, Apr 20). Ontario’s parties offer different visions on corporate tax rate. Retrieved from CBC: http://www.cbc.ca/news/canada/toronto/ontario-election-corporate-tax-rate-1.4626804

DOUG FORD WILL HELP SMALL BUSINESSES CREATE GOOD JOBS. (2018). Retrieved from ONTARIOPC: https://www.ontariopc.ca/doug_ford_will_help_small_businesses_create_good_jobs

Fiscal Plan. (2018). Retrieved from Ontario NDP: https://www.ontariondp.ca/fiscal-plan

Hydro. (2018). Retrieved from Ontario NDP: https://www.ontariondp.ca/hydro

Ontario Liberal Plan. (2018). Retrieved from Liberal Ontario: https://platform.ontarioliberal.ca/full-platform-text/


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