What’s the Tax Situation Like In Other Provinces Besides Ontario?
In most cases we are only concerned about our own tax situation as to how it affects us. We know that there is the Federal level of taxes that affects all Canadians. Then there is the Provincial taxes, and then right down to the Municipal level.
If we are looking specifically at our taxes we often form the mindset that if we have any control over them at all then the highest level of this would be the municipal, then the provincial, followed by the Federal. This is based on our level of interest.
At the municipal level we can go to the various departments and perhaps complain or attend town meetings to give our input. At the provincial level we have a little more interest because it affects us differently than other provinces. At the Federal level we just basically accept it for what it is because the only major impact we can here on a personal level is by who we vote for.
Looking at the Provincial level as Ontarians we often feel that we are the worse off compared to other provinces. Many times we reach this conclusion unfairly because we haven’t taken the time to look at the Provincial tax conditions they are faced with.
Let’s take a look at a few of the other provinces:
The tax payers here on one hand are breathing a sigh of relief because they are not being hit with any tax increases. At the same time though, many of the original tax incentives that were in place are getting a hard hit.
Most provinces really juggle the budget because of the financial mess they are in. They feverishly look for ways to get out of the red. This is not the case with this province as they can proudly boast they are in the black. They have a surplus of close to one billion dollars. So what did they do to accomplish this? Did they tax their people to death? Make it so they had to tighten their financial belts, with the concept of no pain no gain?
Actually they attribute this surplus to the residents being high earners, less car insurance claims, and more home buyers. With the tax payer earning more money it meant they could pay more income tax. This province also owns an auto insurance company that contributed to the surplus.
While the economic conditions are widely diversified amongst the provinces it is at least interesting to look at what the rest of the country is doing in terms of taxes. It makes you wonder if the provinces that are doing poorly could learn anything from the success stories like B.C.
Coming back to home, don’t forget our provincial government has kicked off what they feel is a very impressive action plan.
Don’t forget that developments that take place throughout the year have a dramatic impact on what happens with the economy in general. These developments affect each province differently. A good example of this, is the drop in oil prices. Some provinces have been or will be affected far more dramatically than others.
The GDP which is the gross domestic product is the measuring stick that is used to determine how healthy the economy is.
Some experts are forecasting that Ontario will experience the most provincial growth in rankings.