As Ontario officially goes to the polls, it is time to recall Premier McGuinty’s most unpopular “health premium” on Ontario taxpayers. The health premium kicks in on taxable incomes above $20,000 and the levy could be as much as $900 on a taxable income of $200,600.
Unlike regular income taxes, the health premium is a regressive tax. It is galling that taxpayers in a wide range of taxable incomes could be paying the same health premiums despite the fact that the levy is not specifically earmarked for health spending. For example, someone with a taxable income of $75,000 pays the same premium of $750 as another with an income of $150,000, even though he or she is earning half the income. Here’s the percentage of health premium paid on taxable income of various levels:
$25,000 – 1.20%
$30,000 – 1.00%
$35,000 – 0.86%
$40,000 – 1.12%
$45,000 – 1.00%
$50,000 – 1.20%
$60,000 – 1.00%
$70,000 – 0.85%
$80,000 – 0.93%
$100,000 – 0.75%
$150,000 – 0.50%
$200,000 – 0.38%
When the tax was first levied, I wrote to the premier (he is also the MPP for our Ottawa South riding) expressing my disappointment with the tax and reminding him that I will take his decision into account when the next election rolls around. Well, the election is here, the massive tax hike still hurts and on October 10th, it’s time to register our confidence (or lack thereof) in Mr. McGuinty.
Don’t forget to vote on October 10. Remember, if we don’t vote, we don’t get to complain!
