Ontario PC Leader Doug Ford vowed Thursday to lower the rate of the provincial middle class tax bracket if elected, at a cost of about $2.3 billion.
The move would see the province’s second-lowest tax bracket decreased by 20 per cent, which the party said will save individual taxpayers as much as $786 per year.
Ford made the announcement at a campaign appearance in Mississauga, calling the plan “affordable and responsible.”
For the provincial portion of their taxes, Ontarians pay 5.05 per cent on the first $42,960 they earn. On the next $42,963, they pay 9.15 per cent. A decrease of 20 per cent would move that rate down 1.83 percentage points, to 7.67 per cent.
When asked by reporters, Ford said the plan would cost provincial coffers $2.3 billion, and would be implemented in the third and fourth year of his mandate, if elected.
“We have a very simple theory, put money back into the taxpayers’ pocket instead of the government, because we believe that the taxpayers are a lot smarter in spending their money than any government,” he said.
READ MORE: 2018 Ontario election promise tracker – here’s what the Liberals, PCs and NDP have pledged so far
PC candidate Vic Fedeli said the party would address the shortfall by finding efficiencies without cutting jobs.
This is the third commitment Ford has made on lowering taxes. He previously vowed to lower the corporate tax rate by a percentage point, and eliminate provincial taxes for those earning minimum wage.
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