Let me clarify the statement. Back in 2012, in an effort to ensure their budget passed, Ontario’s Provincial Liberals gave in to pressure from the NDP. The NDP threatened to defeat the budget unless a tangible surtax on the rich was included. As a result, the Liberals introduced a two percent surtax on individuals earning more than $500,000 per year.
The Premier rationalized the shift in policy by stating,
“They wanted a tax on the rich. I want to pay down the deficit faster.”
— Dalton McGuinty 2012 then Premier of Ontario
The expected $470 million in extra revenue was earmarked to reduce Ontario’s deficit. This political move allowed then-Premier McGuinty to preserve his leadership. He presented himself as fiscally responsible. He also appeared socially responsive. He did this by taxing the rich while appearing to curb spending.
As a result, Ontario’s top provincial tax rate increased from 46.5% to 48.5%. At the time, I wasn’t at risk of paying that surtax. My real-world job didn’t pay quite that well. However, I was curious to know whether any of my readers were in that income bracket. Did you know anyone who was affected, and how did they feel about this new tax?
Was this Ontario’s version of “Eat the Rich”?
🔄 Update (2025)
As of 2025, the Ontario surtax on high-income earners still exists in a modified form. Ontario’s tax brackets have been adjusted over time, but a progressive structure remains in place. While the original surtax from 2012 has been absorbed into the broader income tax framework, high earners in Ontario continue to pay among the highest combined federal-provincial marginal tax rates in North America—reaching up to 53.53% for income above approximately $246,000 (2025 figures).
The conversation around taxing the rich is far from over, especially as governments grapple with post-pandemic deficits and increasing inequality.
work on their coats of arms and spelling
And Now A Lymeric
In Ontario, wealth hit a hitch,
-- Don't blame me I got this one from AI!!! (ChatGPT)
When surtaxes targeted the rich.
Though they screamed, "Unfair game!"
The Premier stood firm in his aim—
“Pay more if you’re stacked up with glitch!”
(That last line was censored by Revenue Canada... for your protection. 😄)
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.
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.
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!!!
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? 😉
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.
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!