If you live in Ontario and one of 23,000 Ontarians who is making over $500,000 you are branded as Super Rich by thePoliticians and are expected to pay 2% more surtax on your income. At the highest income bracket, Ontarians currently pay roughly 46.5 per cent in provincial and federal taxes combined.
The new tax would move Ontario income tax rate to 48.5 per cent for the Super Rich.
Last week of April 2012, Premier Dalton McGuinty announced this extraordinary tax after a meeting with New Democratic Party leader Andrea Horwath. “If you’re making over half a million dollars, we’re asking you to do a bit more,” McGuinty said at a news conference.
The deal will ensure passage of McGuinty’s first minority budget with NDP support, which combines austerity measures with additional spending in health and education. Progressive Conservatives have said previously they will vote against the budget.
McGuinty said the new tax would bring in $470 million per year and “would be eliminated when we balance the budget in five years.” The proceeds would go toward eliminating the province’s $15.2-billion deficit.
The Liberal-New Democratic Party budget deal also increases child care funding, disability and welfare benefits, and other spending priorities. The deal also includes compensation to the horse racing industry, which learned this year the Liberals will eliminate a roughly $340 million annual subsidy through its slots-at-racetracks program.