New tax break coming in Ontario budget

In a major pre-election promise, Ontario’s Progressive Conservatives are pledging to extend a tax break to thousands of Ontario workers amid growing affordability concerns in the province.

Global News has confirmed the Ford government’s budget, set to be tabled on Thursday, will increase the eligibility for the Low-Income Workers tax credit (LIFT) from $38,000 to $50,000, if the budget is passed after the election.

A government source told Global News it would impact an additional 700,000 people, and a total of 1.1 million people would receive an average tax break of $300.

This news was first reported by the Toronto Star.

The tax credit was first introduced in 2018 as the Ford government looked to temper some of the anger over the cancelation of a minimum wage increase that would have given low-income earners $15 an hour.

The move comes ahead of an election campaign that will largely be focused on affordability — from the price of gasoline to the cost of housing. Each of the province’s political parties have offered platform planks designed to reduce costs for voters.

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While the cost of the expanded LIFT program will be revealed in the budget, the government said the tax relief program cost the Ontario treasury $125 million in 2018-19.

While the province is still recovering from the economic shockwaves of COVID-19, a strong employment recovery and increased consumer spending has left Ontario with a rosier financial picture, making room for splashy spending ahead of the election.

“The numbers are looking good for this government right now in terms of being able to provide some real relief for taxpayers, ” said Karl Balduf, who served as chief of staff to Finance Minister Peter Bethlenfalvy.

Balduf said what’s unique about this budget is the direct say voters get to have on the PC party’s promises.

“For once Ontarians are going to be the ones that either pass or don’t pass this budget,” Balduf said.