Toronto – The fine print of the NDP platform reveals a scheme to raise business property taxes by more than $1 billion, with an average annual hit of 28% per business. Even worse, this local business slamming levy would be applied year in and year out, with no consideration for whether the company was profitable or not. It would even be higher in communities with historically low property taxes.
“The NDP has a hidden tax increase in their platform that will do real harm to our economy and hit small businesses hard,” said Ontario Liberal Candidate Han Dong. “This NDP property tax hike will make it harder for local businesses to grow, hire or even survive.”
The NDP platform would impose a much higher unified Business Education Property Tax allowing the NDP to scoop another $1.075 billion from businesses small and large. Based on the existing average of $3.8 billion in revenue, this means an average increase of 28% - for most small businesses that would dwarf nearly any other single cost they bear and run them deep into the red.
For example, in Toronto a $1 million property owes $10,000 in property taxes at the average rate of 1%. This NDP job killing tax hike would represent a $2,800 increase, regardless if the business is profitable, struggling or operating in an economically-disadvantaged community.
The Business Education Property Tax is a patchwork of rates frozen since Mike Harris took education taxing powers from school boards. Liberals invested $200 million annually to reduce the highest business property tax rates. (Source: Ontario Budget 2012.)
“The most alarming part of this plan is that none of this money is even going towards education. According to the NDP financial plan, there is not one dollar more for education,” continued Dong. “Under the NDP, job killing business property taxes will skyrocket. Under Liberals, they only go down.”
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Ontario Liberal Party