Ontario offering small businesses relief to ease transition to higher min wage
TORONTO — Ontario will slash small business taxes and offer millions in incentives aimed at easing the transition to an increasing minimum wage as the province’s Liberal government heads for a spring election.
Finance Minister Charles Sousa unveiled the plan in the province’s fall economic statement Tuesday afternoon. The corporate tax rate for small businesses will fall from 4.5 per cent to 3.5 per cent effective Jan. 1, 2018, the same day the province will increase its minimum wage from $11.60 to $14.
Critics of the government’s sweeping labour reform package introduced in May have called for the tax offsets for months to allow businesses to absorb the cost of the wage hike. The government plan will eventually see minimum wage jump to $15 an hour by Jan. 1, 2019.
“We will not back down from these commitments,” Sousa said. “An increase to minimum wage cannot wait. People cannot wait … delaying an increase is delaying an increase.”