Ontario’s next election is going to be fought, as so many elections in challenging times are, on the economy. But it won’t be about simply who is the party more capable of managing the province’s economic fortunes. No, this is shaping up as a fundamental clash in economic philosophy.
Provincial Progressive Conservative leader Tim Hudak this week laid out an economic platform built upon a corporate tax cut (to 10 per cent from 11.5 per cent). The idea is that a lower tax regime will attract business investment – and, by extension, jobs – to the province. A back-of-the-envelope estimate suggests this would reduce the government’s corporate tax take by close to $1.5-billion annually – but the belief is that the resulting growth in business would more than make up for this.