Report pinpoints causes of Ontario prosperity gap

Ontario must explore new tax reform measures and address the high tax burden on capital investment in order to close what’s been called the 10% prosperity gap. The recommendation was made by the Ontario Task Force on Competitiveness and Prosperity in its second annual report. The Task Force — led by Roger Martin, dean of the Rotman School of Management — did not provide any specific recommendations but will work to “identify further initiatives” in the months ahead. Entitled Investing for Prosperity, the report blames under-investment for much of the province’s lagging productivity. It contends that businesses invest 10% less in machinery, equipment and software than the average of the 16 jurisdictions used in its analysis. Under investment in education, cities and processes to integrate immigrants into the economy are undercutting the ability of Ontarians to create value. The prosperity gap translates into Ontario trailing the peer group median by $4,118 or 10%, resulting in $17 billion less in tax revenues. The report is also critical of all levels of government for shifting spending towards areas that consume prosperity (health care, social services) and away from investments in education and infrastructure. The report is available at <a class="micro" href="http://">www.competeprosper.ca....