Business taxes too high in Ontario, Flaherty says
Published Friday, November 2, 2007 2:33PM EDT
Federal Finance Minister Jim Flaherty says the Ontario government should aggressively cut business taxes to create jobs and prevent an economic slump.
"Taxes are too high in Ontario ... they need to come down," Flaherty told CTV's Paul Bliss on Friday.
"Right now, sadly, Ontario this is the most expensive place, tax-wise, for a business to come and invest.
"Ontario is supposed to be leading on the manufacturing side, so that needs to change. We're doing our part federally and I hope they do so provincially."
The minister's comments came a day after Chrysler announced it will cut up to 15 per cent of its North American workforce. The decision means 1,100 autoworkers at its Brampton, Ont. plant will lose their jobs.
Flaherty said the rising loonie is both good and bad news for the province.
A strong dollar means businesses can purchase expensive equipment from the United States and help modernize facilities, allowing them to compete globally, he said.
The soaring buck, however, means products made in Ontario will cost more for U.S. buyers, so they may buy less, which could mean lost jobs, Flaherty said.
Flaherty told CTV News the economy would grow better with lower business taxes, not government subsidies.
As Flaherty raised concerns about the direction of Ontario's economy, positive employment news from Statistics Canada on Friday showed the province grew for a second straight month with 32,000 new jobs created in October.
So far this year, employment in Ontario has increased by an estimated 1.7 per cent, just below the national average of 2.1 per cent.
So far this year, employment in the province has increased by an estimated 1.7 per cent, just below the national average of 2.1 per cent.
With a report from CTV's Paul Bliss