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Ontario’s next budget crucial for manufacturing: CME

Published by Derek Lothian on March 12, 2012

Keeping tax rates competitive and reducing the cost of regulations in the next provincial budget will be the keys to growth in Ontario's manufacturing sector, according to Canadian Manufacturers & Exporters (CME).

The 10 per cent corporate tax rate for manufacturers puts Ontario on par with the Organisation for Economic Co-operation and Development (OECD) average when combined with the federal rate. In previous budgets, the Ontario government had also committed to reducing the general rate two points from the current 12 per cent.

"We know that there is a direct link between after-tax profitability and investment in manufacturing," says Ian Howcroft, vice president, CME Ontario. "That means economic stimulus and jobs. We recognize the importance of fiscal restraint; however that alone will not lead to a brighter future for those who live and work in Ontario."

CME continues acknowledge the great strides that have been made on tax reform and to advocate for the government to hold the line on its plan to create a more globally competitive climate for investment.

"The long-term negative impact on investor confidence would out-weigh any short-term gain that may result from a retraction of that commitment," says Howcwoft. "Ontario is also calling for a comprehensive manufacturing strategy to drive economic growth and protect our standard of living."

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