Ontario Budget 2009

Ontario Finance Minister, Dwight Duncan, delivered his budget on March 26, in the middle of one of the worst economic downturns that Ontario has seen. The highlights are below:

• Total deficit of $56.8-billion over seven years – including $3.9-billion for fiscal 2008-09, $14.1-billion in 2009-10,
  $12.2-billion in 2010-11, $9.7-billion in 2011-12, $8-billion 2012-13, $5.8-billion in 2013-14, $3.1-billion in 2014-15.
• Balanced budget projected for 2015-16.
• Harmonized 13% sales tax beginning July 1, 2010 that will raise costs of a range of goods and services, including fast-food meals, hair cuts, heating fuel, Internet bills, gasoline.
• Cutting personal income tax rate from 6.05% to 5.05% on the first $36,848. Rates for next two categories ($36,848 - $73,698 and greater than $73,698) stay the same, at 9.15% and 11.16%.
• $32.5 billion in proposed infrastructure spending, including $5 billion from the federal government, over the next two years to build and repair roads, schools, hospitals and public transit in an effort to create 300,000 new jobs.
• Increasing the annual child tax benefit for low-income families to $1,100 from $600 as of July.
• Income tax cut for 93% of Ontario taxpayers, including an average 10% cut for people earning less than $80,000.