Could someone elaborate for me...

[hermetic]

Ontario Scraps Nine Tax Credits is the headline in the Toronto Star today. It goes on to say that: "Begins the process of phasing out the capital tax starting Jan. 1." What exactly is the capital tax?

[TO Kid]

1. Capital tax

IIRC the capital tax is a percentage of the book value of a business. Not sure what the rationale behind it was except that they do it because they can.

[AllegroRondo]

2. Is that like a personal property tax?

In Missouri, we pay a tax every year on cars, boats, and livestock.

[Iceburg]

3. Capital tax in the above sense relates to business only

Capital taxes are applied to capital invested in machinery, equipment and buildings required to operate the business, and to the financial capital held by financial institutions to ensure their safety and soundness.

The Ontario governmenet announced that it will reduce the capital tax rate for all corporations by 10 per cent effective January 1, 2004, and will completely eliminate the capital tax at the same time that the federal government eliminates its capital tax.

Business aside, we do have a federal capital "gains" tax that applies to personal assets but only when sold.

Capital Gain: An increase in the money value of a capital asset such as a share, bond, parcel of land, antique or other asset, which results in a profit if the asset is sold. If a share is bought at $26 and sold at $30, there is a capital gain of $4.

Taxable capital gain: The portion of capital gain realized during the year that is required to be included in income. This is equal to one half of the net capital gain. If a share is bought at $26 and sold at $30, there is a capital gain of $4. The taxable capital gain is one half of this amount, or $2. This is the amount that is included in income.

[Telly Savalas]

4. So let me get this straight...

McGuinty raises taxes on the poor and middle class with his regressive "health care premiums" then turns around and cuts taxes for corporations?

What an asshole.