Toronto, March 26, 2026: The small- and medium-sized (SMEs) members of the Coalition of Concerned Manufacturers and Businesses Canada (CCMBC) saw very little reason to believe anything will improve as a result of measures contained in the 2026 Ontario budget. CCMBC President Catherine Swift said “After years of high taxes, more intrusive and costly government red tape, and growing government size and cost, more businesses are looking outside of Ontario for their future growth. The Trump tariffs have merely added to an already bleak outlook for Ontario’s businesses.”

The Ontario budget fiddles around the edges somewhat, with some HST relief for new homebuyers and a welcome reduction of one percentage point in the small business corporate income tax rate. However, there is still a focus on government top-down economic development policy in the $4 billion allocation for the “Protect Ontario Investment Fund”. This fund will apparently be overseen by a private sector investment manager, but it will still be subject to government control. Swift commented “It would be better to devote this $4 billion to further tax reduction for all businesses, instead of maintaining a government fund to subjectively cherry-pick investments, a process that has never been successful in the past.”

All tax experts are in agreement – the federal and Ontario provincial governments have increased taxes on businesses and individuals to the point that they have priced themselves out of the market for business investment and attracting skilled professionals. Without some major reductions in the size of government, the tax burden and regulatory overload, Ontario will remain uncompetitive and entrepreneurs will continue to flee the province. “The Ford government claims that the budget will make Ontario the ‘most competitive, resilient and self-reliant’ economy in the G7. That outcome will not be achieved by this timid budget that continues past practices of increasing total spending, deficits and minor tinkering with tax changes”, said Swift.

There is nothing in this budget that will stop manufacturers and other SMEs from leaving Ontario as they have been doing for years. One key element missing from the budget is a substantial decrease in personal income taxes, which remain out of sync with the US, the EU and other developed countries. “The Ontario government claims to want to attract professionals, doctors and entrepreneurs to the province, yet imposes punitively high-income tax rates that are not indexed to inflation. These desirable groups will continue to avoid locating in Ontario unless something changes on the tax front”, Swift added.   Ontario and Canada have been falling behind other countries in terms of economic growth and standard of living, despite the fact all nations have been subject to the same external shocks. As a result of both Ontario and federal government policies, the Ontario economy will likely experience a recession in 2026. Blaming US tariffs or the Iran war provides convenient scapegoats for governments who have only themselves to blame.

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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.