Ontario Premier Doug Ford's Economic Growth Strategy Falls Short

Strategic Insights -

Premier Doug Ford's call for federal tax cuts to stimulate economic growth in the face of U.S. President Donald Trump's tariffs is a reactive approach that neglects his own government's role in improving Ontario's economic competitiveness. The key to attracting and retaining high-skilled workers lies in lowering personal income tax rates, which are currently among the highest in Canada and the United States. By failing to deliver on his 2018 promise to lower tax rates and instead continuing to maintain high deficit-financed government spending, Premier Ford is not only exacerbating the problem but also undermining his own credibility as a leader.

Key Takeaways:

  • Ontario's top combined (federal and provincial) personal income tax rate is 53.53 per cent in 2025, the third-highest among all 61 Canadian and U.S. jurisdictions.
  • The top combined personal income tax rate in Ontario is higher than in every U.S. state and all but two Canadian provinces.
  • An individual earning $75,000 will face a higher combined personal income tax rate in Ontario than in every U.S. state except Oregon.
  • Premier Ford promised to lower the tax rate for the second-lowest income bracket by 20 per cent in 2018 but has not delivered on this promise.
  • High levels of deficit-financed government spending accounted for an estimated 42 per cent of the Bank of Canada's rate increase from 2022 to 2023.
  • The Ford government continues to maintain high deficit-financed government spending, which puts pressure on the Bank of Canada to maintain interest rates at current levels.

Statistics:

  • 53.53%: Ontario's top combined (federal and provincial) personal income tax rate in 2025.
  • 61: Number of Canadian and U.S. jurisdictions, with Ontario's top combined PIT rate ranking as the third-highest.
  • 2025: The year in which Ontario's top combined PIT rate will be 53.53 per cent.
  • $75,000: The income level at which an individual will face a higher combined personal income tax rate in Ontario than in every U.S. state except Oregon.
  • 20%: The rate by which Premier Ford promised to lower the tax rate for the second-lowest income bracket in 2018.
  • 42%: The estimated proportion of the Bank of Canada's rate increase from 2022 to 2023 attributable to high levels of deficit-financed government spending.
  • 2022-2023: The period during which the Bank of Canada raised its target rate from 0.25% to 5.00%.

Sources:

  • [Jake Fuss and Grady Munro, The Toronto Star, August 20, 2025]