Several media sources this week received documents supposedly leaked from Ontario’s Liberal cabinet that claimed the government planned to hike income taxes to help pay for a 10-year infrastructure and transit plan that will cost approximately $29 billion.
The release of the 2014 budget a few hours ago proved that these documents were in fact authentic.
Without detailing the exact incomes affected by the budget plan, or the amount of the tax increase, the leaked 2014 Ontario budget information proposed that the hike would affect “high-income earners.” At least one media outlet, The Toronto Star, claimed that the hike would affect earners who make $150,000 or more a year.
Today’s released budget plan confirmed those claims and also revealed a proposed $900 million in new taxes.
For high-income earners, taxes would increase by a percentage point for every dollar earned above $150,000. The budget would also increase income taxes by lowering the top tax bracket to $220,000. Gas taxes of approximately $1.3 billion would be applied to the infrastructure and transit plan.
The government also plans to increase taxes on tobacco sales and aviation fuel. With the latter, a hike of four-cent-per-liter would take place gradually over four years.
Taxing only high income earners matches Premier Kathleen Wynne’s promise to not raise gas or HST tax rates or taxes for middle-income earners.
The budget included several other key points. The plan would remove fuel tax exemption for construction companies and restrict large corporation tax credits.
No one from the government would originally confirm the authenticity of the leaked information. Critics have announced that approval of the new budget could result in a severe government shakeup.
The leaked information this week came from a source that asked to remain anonymous.
Liberals deliver NDP-friendly big-spending budget, including $900-million in new taxes