Jobs and growth will be focus of Ontario fall economic update: Sousa

TORONTO – The Canadian Press has learned Ontario’s Liberal government will announce changes today to lower taxes for one million low- and moderate-income investors who hold stocks that pay dividends.

Sources say Finance Minister Charles Sousa will unveil changes to the way dividend tax credits are calculated that will save shareholders an average of $145 a year.

The initiative will be revenue neutral because about 100,000 higher income investors will pay more to offset the increased tax credits for others, including about 300,000 seniors.

Investors who don’t pay Ontario’s income surtax, which kicks in at $70,000 income, will get higher dividend tax credits.

The sources say the dividend tax credit is an example of the type of changes the Liberals are looking to make in next spring’s provincial budget.

Meanwhile, Sousa will outline how the province plans to stay on track to eliminate an $11.7 billion deficit by 2017-18 in his fall economic update, which he says will focus on jobs and growth.