Frank Gunn/cp
Q: I am one of several owners that invest in real estate properties through a corporation. In the past year, the company acquired two new holdings but incurred a larger than normal loss. However, we incurred thousands of dollars that my accountant referred as a capital tax. Why are we paying tax on capital?
A:
The upcoming provincial election will be of interest to all of Ontario. Our electoral candidates squared off on Sept. 20 to put forth their party platforms. Here are some highlights proposed by the three parties:
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Capital Tax — The Liberals and Conservatives propose to eliminate the capital tax, while the NDP would increase the general corporate tax rate to 14.5 per cent.
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Ontario Health Premium (Tax) – John Tory would phase out this premium (tax), Howard Hampton will eliminate it for working families and reduce it for middle income and Dalton McGuinty (architect of OHP) will maintain the status quo.
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Minimum wage – The Liberals would continue to raise minimum wage to $10.25 by 2010 while NDP would raise minimum wage to $10 immediately. Business owners are keeping a close watch, as this may affect their competitiveness and bottom line.
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Public education – The NDP would provide an additional $400 million and extend junior and senior kindergarten to full-day. Liberals would invest an additional $3.1 billion annually by 2011, expand kindergarten programs to full-day and will not fund religious private schools. The Conservatives will provide funding to religious private schools that adhere to the Ontario curriculum and provide more than $800 million new funding for public education.
If you are concerned about the direction of our province, get to the voting booths! Your vote counts.