CLHIA submission to Honourable Charles Sousa regarding the upcoming Ontario budgetRelease Date: 01/22/2014 Staff Reference: Peggy McFarland
January 20, 2014
Honourable Charles Sousa
Minister of Finance
7th Floor, Frost Building South
7 Queen's Park Crescent
Toronto, ON M7A 1Y7
Please find enclosed a submission from the Canadian Life and Health Insurance Association (CLHIA) providing input to your deliberations on the forthcoming provincial Budget.
Established in 1894, CLHIA represents life and health insurers accounting for 99% of the business in Canada. With 63 companies headquartered in the province, including two ranked in the top 20 in the world, the life and health insurance industry is a major contributor to Ontario’s economy. The industry directly employs over 66,000 Ontarians and investments in in the province of over $240 billion. The industry paid over $34 billion in benefits to Ontarians through life and health insurance products including, annuities, RRSPs, disability insurance and supplementary health plans. The industry paid over $2 billion in taxes in Ontario in 2011.
The life and health insurance industry supports the Government's commitment to eliminate the deficit by 2017-18 and reduce the province's debt-to-GDP ratio. In this submission, we recommend that in furthering its core priorities of investing in People, Business and Infrastructure, Ontario move forward to:
1) Investing in people:
- • enact measures to facilitate the provision of Pooled Registered Pension Plans (PRPPs) with mandatory participation of all employers of certain size,
• ensure Ontarians have access to tax assisted long-term care savings and insurance products they need to meet the challenges of old age.
2) Supporting a dynamic and innovative business climate:
- • as fiscal circumstances permit, reduce and eventually eliminate the existing Retail Sales Tax and premium tax on life and health insurance premiums, and
• as fiscal circumstances phase out Ontario's capital tax on life and health insurers.
3) Building Modern Infrastructure:
- • expand the use of long-term private financing in funding projects through Private Public Partnerships (P3s).
CLHIA appreciates the opportunity to contribute to Ontario’s pre-budget consultation process. If you or your staff requires any further information on these matters, my colleagues and I are at your disposal.
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