The Ontario Liberals and Finance Minister Charles Sousa tabled their second Budget on May 1, 2014.
This is Kathleen Wynne’s second budget since becoming Premier.
The $130.4-billion budget projects a deficit of $12.5-billion, more than the $10.1-billion previously projected for this year.
Finance Minister Charles Sousa said “the deeper deficit is necessary so the government can spend money to stimulate the sluggish economy.”
Among the changes in the new budget is an increased tax rate for top income earning individuals as well as a higher minimum wage.
Darin Cleary, CGA, CFI, LPA, of Millards Chartered Accountants says intermediate income earners will pay an additional 1%.
“A new intermediate income tax bracket will apply to taxable income over $150,000 and up to $220,000. Income in this bracket will be taxed at 12.16%. It was previously taxed at 11.16%.”
The minimum wage will increase to $11.00 per hour on June 1, 2014 and will be indexed to Ontario inflation from October 2015.
Cleary says the budget also adds new tax for tobacco smokers.
“Effective immediately, the tax on a cigarette or a gram of tobacco increases from 12.350 cents to 13.975 cents.” There is no change to the tax on cigars.
Wholesalers of affected products are required to take an inventory of such goods on hand at the end of May 2014 and remit the additional tax.
Existing clients should contact their Millards advisor for more information . Millards is accepting new clients and anyone with a tax inquiry should contact Millards Chartered Accountants soon to discuss their taxation circumstances.