Toronto, May 15, 2025: Members of the Coalition of Concerned Manufacturers and Businesses Canada (CCMBC) are disappointed, but not surprised, by the 2025 Ontario provincial budget. Consistent with previous years, the emphasis of the Ford government is on spending growth instead of tax reductions and government efficiency improvements. CCMBC President Catherine Swift stated “The Conservative government is using the Trump tariffs as the excuse for its latest big-spending budget, but in fact this budget just follows the same path as previous budgets under this government when such tariffs were not on the table. If the Ford government had followed a more sensible balanced approach of limiting spending growth while reducing taxes on Ontarians in previous years, the province would be much more able to withstand Trump’s attacks today.”

Manufacturers and other SMEs have been leaving Ontario in record numbers in recent years, primarily for the US, because business conditions in Ontario are not competitive. Swift added “Corporate tax rates in the province are out of sync with OECD averages and US rates. Trump’s plans to further reduce US corporate taxes will worsen this disparity and leave Ontario businesses worse off.”

Personal income taxes remain uncompetitively high in Ontario as well, discouraging entrepreneurs and professionals from locating in the province. “The fact that the top two personal income tax brackets in Ontario remain unindexed to inflation is theft, pure and simple, as taxes increase only because inflation has increased, not because the individual is earning more in real terms”, Swift noted. The very high rates of tax on higher income individuals such as doctors, engineers, entrepreneurs and other professionals are deterring the very people we want to come and stay in Ontario. A very different approach will be needed in future if Ontario is to reclaim its previous role as the economic engine of Canada.

——————————–

The CCMBC was formed in 2016 with a mandate to advocate for proactive and innovative policies that are conducive to manufacturing and business retention and safeguarding job growth in Canada.
For further information or to arrange an interview, please contact Catherine Swift at swifty4488@outlook.com or 416 816 7248.