Ford government should stop the $200-cheque gimmick and finally cut taxes

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Ford government should stop the $200-cheque gimmick and finally cut taxes
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Premier plans to send a onetime tax rebate to all Ontarians in an effort to ‘stimulate the economy.’ Media reports suggest it will be at least $200

plans to send a onetime tax rebate to all Ontarians in an effort to “stimulate the economy.” While the amount remains unclear, media reportsit will be at least $200 per person to be distributed in early 2025. Mr. Ford is expected to make the announcement during the provincial government’s fall economic statement this week.

If the Ford government is serious about that, it should reduce personal income taxes rather than float gimmicky rebates. Another problem with onetime rebates – as opposed to tax cuts – is that they don’t improve the economic incentives facing Ontarians. If a government reduces income tax rates it provides a stronger incentive for individuals to work more and make investments because they get to keep more of the next dollar that they earn. By influencing behaviour in these ways, permanent tax cuts help encourage economic growth, which creates more economic opportunity for workers across the income spectrum.

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