Adedokun Waliyu 
Ontario has overtaken Quebec as Canada’s largest provider of corporate subsidies, according to a new report released by the Montreal Economic Institute (MEI).
The report states that if Ontario replaced its corporate subsidy programs with broad corporate tax cuts, the province could offer the lowest corporate tax rate in North America, making it more attractive to businesses.
Renaud Brossard, the MEI’s Vice-President of Communications, said Quebec had long been regarded as Canada’s leader in corporate welfare, but Ontario has assumed that position since 2017.
According to the report, Ontario’s spending on corporate subsidies increased from approximately $2.9 billion in 2014 to $11.5 billion in 2024. After adjusting for inflation, this represents a 209 percent increase over the decade, amounting to about $713 per resident each year.
By comparison, Quebec spent $8.5 billion on corporate subsidies during the same period.
Ontario generated $27.8 billion in corporate tax revenue during the 2024–25 fiscal year.
The report argues that redirecting the money currently spent on subsidies toward reducing corporate taxes would allow Ontario to lower its provincial corporate tax rate from 11.5 percent to 4.75 percent.
When combined with the federal corporate tax rate, businesses operating in Ontario would pay a total corporate tax rate of 19.75 percent, which the report says would be the lowest in North America.
Brossard argued that lower corporate taxes would benefit businesses of all sizes instead of directing government support to a select number of companies.
He noted that subsidy programs often provide only temporary assistance to a few politically selected projects, while businesses continue to face relatively high tax rates once the subsidies end.
According to him, reducing corporate taxes would help major manufacturers as well as small and medium-sized businesses by leaving them with more resources to invest, expand operations, create jobs, and strengthen Ontario’s economy.
