If pocketbook issues are on voters' minds in the Ontario election campaign, Tory Leader Tim Hudak says his plan to cut personal income taxes is right up their alley.
“You deserve more of your money to spend on what you want – not what Kathleen Wynne wants," Hudak said Thursday, promising to save the average Ontario family more than $800 a year from a planned tax cut.
"Whether it’s an overdue family vacation, starting a small business or simply paying the bills. It is your money," he said in promoting his Million Jobs Plan. "It should be up to you.”
In his party platform released this week, Hudak proposes to cut personal and corporate taxes, lower power prices, balance the books, and streamline red tape to help create one million new jobs over eight years.
Critics have questioned whether that's doable, especially since one of his key policies is to cut 100,000 jobs in the broader public sector, or 10 per cent of the current workforce of one million.
The NDP have made the cost of living a key part of their populist election campaign, with promises to cut the HST on hydro bills, provide $100 rebates on consumer energy costs and other measures leader Andrea Horwath says will make life more affordable for "hard-pressed" middle class families.
The Liberals also promise to make life more affordable, with a higher minimum wage, targeted tax benefits, tuition fee rebates and other social policies to improve fairness in society.
But Hudak is following a tried-and-true Conservative prescription for economic growth – cut taxes and the jobs will flow.
However, the issue of high taxes may not be resonating as much in the current campaign in part because no party is suggesting hikes to the HST or broad income tax increases that would enrage the middle class.
In its May 1 budget, the Liberals did hike taxes on jet fuel, tobacco and high income earners – the 2 per cent of the workforce who earn more than $150,000 a year. Those changes will raise another $1.1 billion by 2016 but leave most of the taxpaying public alone.
The NDP, meanwhile, wants a "modest" hike in corporate taxes to pay for transit and is likely to support surcharges on wealthy taxpayers in its platform to help pay for its jobs and social policy ideas.
But it also opposes any tax increases that would hit the middle class – Ontarians earning roughly between $25,000 to $90,000 a year.
Hudak said an Ontario PC government will reduce personal income taxes once the budget is balanced in 2016-2017.  He said such a move will create 47,000 new jobs and save the average family $821 each year.
“Getting to a balanced budget will be a big job," Hudak admitted. "You already do your part. You pay your taxes. Now the government must do its part as well."
“I’m here to say it will be worth it in the end.  Because there will be a brighter future with one million new jobs and lower income taxes.”
Hudak said a report by the Conference Board of Canada confirms that a cut in personal income taxes will boost household spending, boost growth and investment.
The report confirms a 10-per-cent reduction in personal income taxes will create 47,000 new jobs.
“The evidence is clear that lower taxes create jobs,” said Hudak.  “The sooner we balance the budget,  the sooner we will lower your taxes and create 47,000 new jobs.”
Hudak said the Wynne Liberals and the NDP will both have to raise taxes to pay for their spending promises.
“My vision for Ontario is different."

Hudak: Tax cuts to save families $821 a year

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