ONTARIO
BUDGET
2002
Individual
Tax Rates
- The maximum tax rates for individuals in Ontario for 2002 and 2003 are:
| Salary
and Interest |
46.4% |
| Dividends |
31.3% |
| Capital
Gains |
23.2% |
- The planned reductions for 2003 have been deferred to 2004.
Corporate
Tax Rates
|
General Rate - % |
M & P Rate - % |
|
Previously
Announced |
Revised
2002 Budget |
Previously
Announced |
Revised
2002 Budget |
| Oct
1/2001 |
12.5 |
12.5 |
11.0 |
11.0 |
| Jan
1/2003 |
11.0 |
12.5 |
10.0 |
10.0 |
| Jan
1/2004 |
9.5 |
11.0 |
9.0 |
10.0 |
| Jan
1/2005 |
8.0 |
9.5 |
8.0 |
9.0 |
| Jan
1/2006 |
8.0 |
8.0 |
8.0 |
8.0 |
Small
Business Corporate Rate
- This is 6.0% for 2002 and is being reduced to 4.0% by January 1, 2005.
| 2002 |
6.0% |
| 2003 |
5.5% |
| 2004 |
5.0% |
| 2005 |
4.0% |
- The low rate is applicable to taxable income for:
| 2002 |
$280,000 |
| 2003 |
320,000 |
| 2004 |
360,000 |
| 2005 |
400,000 |
Health
Care
- The base operating spending on health care has increased from the 1995
fiscal year to the 2002 fiscal year by $6.1 billion.
- An additional $1.7 billion has been allocated for the current year,
bringing the total to $25.5 billion.
- Health care spending was 38% of the government program expenditures in the
1995 fiscal year. It has increased to 45% in the 2002 fiscal year (excluding
public debt interest) or 39% of the total budgeted expenditures.
Post-Secondary Education
- The operating grant commitment has been increased by $75 million to $368
million for 2003-2004.
- The government is introducing the second phase of the Ontario Student
Opportunity Trust Fund to assist academically-qualified individuals to pursue
post-secondary education.
Benefits
From Commercial Casinos
- In 2002-2003, net provincial revenue from commercial casinos, estimated at
$721 million, will be used to support general government priorities including
health care, education, justice and social programs.
- Since the commencement of commercial casinos, 27,000 direct and indirect
jobs have been created in Ontario. Commercial casino operations, and the
additional tourists they attract, contribute an estimated $2.4 billion
annually to the Ontario economy.
Support
for Health Care, Ontario Trillium Foundation and
Communities
- In 2002-2003, it is estimated that $1.45 million net revenue from
lotteries, charity casinos and slot machines at racetracks will be applied to
support the operation of hospitals.
- The Ontario Trillium Foundation has become one of Canada's largest
grant-making foundations. In 2002-2003, the Ontario Trillium Foundation will
be provided with $100 million to help build healthy and strong communities by
contributing to charitable and not-for-profit organizations.
- 2% of gross slot-machine revenue, estimated at $29 million for 2002-2003,
is allocated to programs that support problem gambling and related treatment,
prevention and research programs.
The
information herein is provided for your general information and action should
not be taken on the basis of this budget memo, but only on the advice of your
own individual advisor, applying this advice to your individual situation.
Please call if you have any questions.
4673
Ontario Avenue, Suite 301
Niagara Falls, Ontario L2E 3R1
Tel: (905)
356-4324
Fax: (905) 356-0964
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