Progressive Conservative Leader Doug Ford's go-to attack in recent days has been that Ontarians have a choice. They can choose the PC party of "Yes" — that will build infrastructure, create jobs and generally "get it done" without raising taxes. Or, they can choose the Liberals, New Democrats or Greens, who will "jack up your taxes" and spend irresponsibly.
QP Briefing asked Ford on Tuesday to lay out exactly which taxes would go up if one of the other parties were to take office. He sidestepped the question, talking about past Liberal decisions.
"Sure, I'll be very clear. The Wynne-Del Duca Liberals, they're the ones who put the tolls in. And they increased them every single year. The licence plate stickers, they increased it every single year. And they're quoted that they're going to be in favour of the carbon tax," Ford said before talking about jobs and infrastructure for another two minutes.
The federal carbon backstop has been in place since the Ford government ditched the Liberal cap-and-trade system. The Supreme Court has made sure it's not going anywhere soon. Liberal Leader Steven Del Duca has said he would stick with the combo of the federal backstop plus the provincial Emissions Performance Standards — but that he would strengthen the latter.
Taxes will go up under an NDP, Liberal or Green government. The question is, whose taxes? The party leaders have said they don't plan to raise taxes on low- or middle-income earners.
QPB analyzed the parties' platforms and asked them to spell out, plainly, whose taxes would go up — and by how much — under their plans. We've broken down their planned tax cuts and increases below for individuals and businesses (not for municipalities).
Keep in mind that campaign promises should be taken with a grain of salt. Tax cuts often get watered down or delayed once the reality of governing sets in. Ontarians still haven't seen the 20-per-cent middle-class tax cut Ford promised in 2018, for example.
NDP
The NDP promises to cancel the PCs’ planned six-month gas tax suspension, which would likely be a New Democrat government's biggest pocketbook hit to average Ontarians. The NDP says it's a gimmick, and that they would get an unspecified, long-term gas price solution in place.
As far as straight-up income tax increases, only those making more than $220,000 will feel the pinch under a Dipper government. The NDP has pledged to freeze income taxes for four years for low- and middle-income earners — which it defines as people making less than $200,000 a year.
Tax increases:
- 1 per cent on those making more than $220,000
- 2 per cent on those making more than $300,000
- Cancel the PCs' six-month gas tax cut of 5.7 cents/litre
- 1.5 per cent on corporate income tax rate (not the small business tax rate)
- Raise capital gains inclusion rate from 50 to 100 per cent on corporations (not small businesses)
- 2 per cent of vacant homes' value
Tax cuts and credits:
- Four-year income tax freeze for people making less than $200,000
- $400/month for informal caregivers
- Extend the Staycation Tax Credit for two more years
Liberals
Not much would change tax-wise under a Liberal government, save for some upticks on the very richest. People making more than $500,000 and corporations making more than $1 billion would get hit, to finance the elimination of HST on prepared food under $20. The Grits also plan to expand some existing tax credits.
"In addition to these changes, we will maintain planned cuts to the gas tax and fuel tax, as well as expanded eligibility for the Low-Income Individuals and Families tax credit," Liberal spokesperson Andrea Ernesaks said in a statement. "In every part of our plan — housing, economic growth, health care, education and climate action — we’ve thought about how to drive down costs and create an Ontario that people can afford to live in."
Tax increases:
- 1 per cent on corporate profit above $1 billion
- 2 per cent on Ontarians making more than $500,000 per year
- 5 per cent of vacant homes' value for non-Canadians; 2 per cent for Canadians
- Unspecified tax increase on condo flippers
- Unspecified "use it or lose it" tax on developers not building on development-ready land
Tax cuts and credits:
- 50 per cent CARE tax credit increase for families with non-licensed child care
- Remove HST on prepared food under $20
- Unspecified Seniors’ Home Safety Tax Credit expansion
- Make the Ontario Caregiver Tax Credit refundable and tax-free
- Remove or reduce corporate taxes for two years for small businesses hurt by the pandemic
- $75 rebate per winter tire; $100 per studded tire in northern Ontario
- More (unspecified) carbon tax rebates for farmers
Greens
The Greens don't have a shot at forming government, but Leader Mike Schreiner has brought up the British Columbia arm of his party a lot recently. It played kingmaker to a 2017 minority NDP government until New Democrats got a majority in 2020. Essentially, every B.C. NDP policy had to be okayed by the three-seat Greens for three years.
So while Schreiner won't be able to implement his full platform anytime soon, you can bet fellow progressives are taking note of where he stands on their key issues.
"In our platform, we are proposing to raise taxes slightly on the very wealthiest Ontarians and largest corporations to provide the services that Ontarians need," Green spokesperson Darren Elias said in a statement.
The Greens are the only party to propose a wealth tax. They say they'd do it by working with the federal government. Prime Minister Justin Trudeau has reportedly eyed a one-time wealth tax — something federal NDP Leader Jagmeet Singh has called for in the past.
Tax increases:
- 20 per cent on someone's third home, increasing to up to 30 per cent on subsequent homes
- 1 per cent wealth tax on assets over $10 million, 2 per cent over $50 million and 3 per cent over $100 million, over three years
- 1 per cent "climate surcharge" on households earning more than $200,000
- 2 per cent over four years on large companies (0.5 per cent per year)
- Unspecified vacant homes tax
- Unspecified "anti-flipping" tax
Tax cuts and credits:
- Expand the Staycation Tax Credit to include dining at restaurants
- Unspecified tax break for businesses that install electric vehicle chargers
- Unspecified tax breaks for food and beverage makers who buy local
- Unspecified tax breaks for small-scale farmers
Correction: the Green Party later clarified that its 1 per cent "climate surcharge" would apply to households earning more than $200,000 — not the top 10 per cent of income earners, as originally stated.
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