In Ontario we TAX the Rich!

Let me clarify the statement, in a move to make sure their budget gets passed the Provincial Liberals have succumbed to a threat by the NDP to defeat the budget if there was not a tangible tax on the rich, and thus the Liberals have announced a Two Percent Surtax on those earning more than $500,000 a year.

How to rationalize this change of decision:

“They wanted a tax on the rich. I want to pay down the deficit faster,” said the Premier.

Thus the $470,000,000 estimated extra income will be put directly on the deficit, so McGuinty gets to live another day, and portray himself as a fiscal conservative while taxing the rich. A very interesting twist on the Liberals platform.

So the highest provincial tax rate is now 48.5% (up from 46.5%), anyone care to comment? Even though I earn some good coin (in my REAL job, not here), there is no danger of me having this tax inflicted on  me, but I am curious to hear if I have any readers who are in this tax bracket (or know folks who are in this bracket) and what they think of this interesting new tax?

Is it a good thing that the Ontario Government wants to Eat the Rich?

{ 6 comments }

{ 6 comments… add one }

  • Jeremy @ Modest Money April 24, 2012, 1:05 PM

    Sounds like a good move to me. Here in BC they give the rich all the perks and instead tax to death the middle class and lower class.

    Reply
  • Greg April 24, 2012, 12:36 PM

    A lot of people like the idea of raising taxes for other people. I’m for flat income taxes and raising consumption taxes, lowering the GST was one of the dumbest moves ever. People making 500k+ already pay a lot more than their share of the taxes and have many options to optimize their situation, increasing taxes this way is likely to lower the government revenue. Now if only those earning 50k or less would recognize that they get more out of the tax system than they put it and appreciate that rather than feel entitled.

    Reply
  • schultzter April 24, 2012, 7:53 AM

    I guess it depends how liberally the gov’t lets people define their income – it may be that when tax time comes we find that no one actually makes more than $500,000 according to the formula.

    At the same time, I’d like to think intelligence had something to do with their getting rich and they would recognize the value of paying down the deficit and how that would be a good “investment” for them.

    Now McGuinty just has to make sure the money goes to the deficit and only the deficit or credibility and support go out the window! And the rich move to Alberta!!!

    Reply
    • bigcajunman April 24, 2012, 8:02 AM

      I think credibility will be an issue if these moneys find their way into other ministries and not onto the deficit.

      Rich folks in Alberta? Really? ;-)

      Reply
  • Sandy April 24, 2012, 7:20 AM

    I’m fully supportive of the new tax on those making > $500,000 and I’m not even NDP! I think it is insane the high wages in this country when most families make under $100,000 and many under $50,000.

    One less Explorer on the road or one less mansion would be fine with me. Do I sound jealous? Well perhaps. I just know that I’m comfortable with my income and feel that some of my money already goes to those making the big bucks so pay up. Or leave the province. There are enough tax breaks for those in the money. Lets start spreading the wealth.

    Reply
    • bigcajunman April 24, 2012, 7:48 AM

      I believe the number being bandied about is 25,000 folks will be affected by this (effected?), really? There are that many people that earn more than $500,000 a year?!?!? Holy crap!

      Reply

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