They of course assume that this will not drive away employees or high-growth industries. Plus a 55% tax rate is unpalatable for a lot of people living in Silicon Valley or NYC looking move. Here comes another recession if this happens.
If she is elected she (and all of Ontario) will have the same day of reckoning that occurred with Bob Rae. Immediate cuts to transit, etc just to keep the lights on at Queens Park
While I don't have a personal issues w/the marginal rate in question. Again this is not the rate as paid on aggregate total income, I would agree, optically that that isn't an ideal choice.
Some of that, however, could be addressed by closing loopholes in the personal income tax system that are in wide use.
If one were to return capital gains to being 75% taxable for instance, that would allow a reduction in marginal rates and an increase in basic exemption. Rolling back TFSAs (hey, I have one too), restoring tighter caps on RRSP deductions and capping the capital gains exemption on a principal residence at $1,000,000 would allow further tax reductions elsewhere.
Beyond that I would personally like to see a return to 15% sales tax (as Quebec and the Atlantic provinces did) where the 1st point would bring the budget to balance and the 2nd could be used to raise the basic exemption.
There are lots of alternative combinations that allow for properly funding the government, delivering additional needed services, and streamlining taxation, making the tax system more transparent, and address optics issues that may occur as a result of a litany of loopholes.
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On Corporate tax, 13% is a very modest and reasonable rate in historical terms not only for Ontario, but globally, however, in light of where other's have moved their rates, pending a treaty that establishes a global minimum rate, I would have preferred 12% (up 0.5% as this would being us in w/the rate in AB, BC and Quebec.
To offset that, I would have raised the small business rate which has become absurdly low, at 2.5%. Though my effective increase would only be to about 5%, because I would lower business education tax, which is a fixed cost, and give hospitality businesses access to beer/wine in a wholesale market instead of retail, again reducing fixed costs, as well as reduce the employer health tax. For those reasons, I would end up proposing a small business rate of about 8%, but as noted the net effect would be much lower.
But, hey, I didn't get invited to write the platform, so I have to choose from what's on offer.
