Ontario Premier Doug Ford arrives at Queens Park as the Ontario legislature resumes in Toronto on Oct. 21.Chris Young/The Canadian Press
Ontario Premier Doug Ford announced his plan to send residents a $200 tax-free rebate cheque next year, a promise that will cost the provincial treasury $3-billion as the Progressive Conservative government mulls an early election call.
Mr. Ford officially revealed his pledge Tuesday in an election-style announcement in which he repeatedly took aim at Ontario Liberal Leader Bonnie Crombie, the leader of the third-place party.
The Premier cited high cost of living and the impacts of federal policies such as carbon pricing as the reason for the move. The cheques will be included in Wednesday’s fall economic statement, which will also reveal the state of the province’s books.
The government said the cheques will go to 12.5 million adults, as well as the parents of the province’s 2.5 million children, regardless of their financial situation. The Premier said only households who pay taxes will receive cheques, though people who are bankrupt or incarcerated will not.
Opinion: Ford government should stop the $200-cheque gimmick and finally cut taxes
Opposition parties have already criticized the move as a gimmick intended to buy people’s votes.
Mr. Ford said his government is able to pay for the rebates because of higher-than-expected revenues as a result of inflation on provincial sales tax revenues, and the impact of recent changes to the federal government’s capital gains tax.
“Taxpayers are the best people to decide how to spend their money,” Mr. Ford said at the announcement in Scarborough in east Toronto. “As I always say, this money belongs to the taxpayers, not the government.”
Mr. Ford confirmed that the cheques will not be means-tested, meaning they will also be mailed to high-income earners.
Asked why millionaires or billionaires will be eligible, Mr. Ford said: “Because they’re taxpayers. These are tax dollars going back to the taxpayers, and we’re going to give it back to every single person in Ontario.”
The next scheduled election in Ontario is not until June, 2026. But Mr. Ford, whose government has a majority, is considering moving up the vote to 2025, before a federal election campaign.
The Premier also recently announced the province is extending its 5.7 cent gas tax cut to June, 2025.
