NEW PAYROLL TAXES FOR LIBERAL PENSION SCHEME WILL COST 150,000 JOBS
(Queen’s Park)– Premier Wynne and the Liberal Government are ignoring the confidential advice of the Ministry of Finance and moving ahead with a new payroll tax that will cost Ontario thousands of jobs, says Sarnia-Lambton MPP Bob Bailey.
In confidential documents that were presented to the Premier and her cabinet in 2013, Ministry of Finance officials clearly outline the devastating impacts that any additional payroll tax would have on job numbers in Ontario.
The Ministry of Finance calculated that for every $2 billion increase in Ontario payroll taxes, 18,000 people would lose their job due to reduced investment, businesses leaving for other jurisdictions, or businesses scaling back their operations.
“Premier Wynne’s dream of creating a provincial pension plan that rivals the CPP means that, using the Ministry of Finance’s own numbers, Ontario is at risk of losing 150,000 jobs,” said MPP Bailey after reviewing the document.
Ontario families already pay $9,970 a year in government paycheque deductions in addition to their personal income taxes – including employment insurance, pension and health tax deductions. The new payroll tax deduction could be nearly $2,500 a year for both employees and employers.
“Any new payroll tax would significantly lower take-home pay at a time when paying for basics like hydro is becoming unaffordable because of this government’s scandals and failed energy policy,” noted MPP Bailey. “No matter how they spin it, any payroll tax or paycheck deduction introduced by this government is a direct tax on the middle class.
MPP Bailey highlighted the Ontario PC Caucus’ Million Jobs Plan as an alternative. The Million Jobs Plan would create jobs through low taxes, affordable energy and a reduced regulatory burden.
“It’s time Ontario had a leader who put jobs first, not higher taxes and fewer jobs,” added MPP Bailey.
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