One of the Greater Toronto Area’s most influential business groups is urging Ontario’s political parties to cut taxes to help companies be more competitive.

In a new pre-election report to be released Monday, the Toronto Region Board of Trade says that “while Ontario consistently ranks as one of the best places to live, we don’t rank as highly in the cost of doing business.”

“Businesses benefit from Ontario’s diverse and educated workforce, but face barriers due to housing affordability, rising electricity prices and poor (research and development) investment,” says the eight-page study.

“The recent government decision to sharply increase the minimum wage over a very short time and raise payroll taxes only increases the pressure to keep costs down, particularly for small businesses.”

Jan De Silva, the board’s president and CEO, said Ontario is “falling behind in key areas where the government makes, or influences, policy, notably labour costs, housing affordability and energy prices.”

With Ontario voters headed to the polls on June 7, De Silva said whatever party forms the next government should harmonize and cut provincial property taxes on businesses.

That would eliminate the different rates paid in municipalities across the province as well as “free up more funds for employment and investment” and help businesses better compete against U.S. states that are lowering corporate taxes, the report said.

Ontario Chamber of Commerce president and CEO Rocco Rossi said his organization is “advocating that the next provincial government reduce the overall tax burden on business.”

“The (Toronto Region Board of Trade’s) call for a return to provincial business property tax reduction and harmonization is a smart way for Ontario to strengthen its competitive advantage.”

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According to the report, Toronto has among the highest business property tax rates in Canada — ahead of Montreal, Vancouver, Calgary, Halifax, St. John’s, Winnipeg and Saskatoon, but lower than Saint John and Charlottetown.

“To deliver fair and inclusive growth, we need to create the conditions for our companies to succeed. This requires a renewed focus on the cost of doing business,” the study says.

“Avoiding uncompetitive policies and cutting property taxes for businesses will protect existing enterprises and increase investor confidence in Ontario,” it continues.

“Greater stability and investment, particularly in uncertain global economic times, allows for a stronger economy in which everyone benefits.”

The report compared Ontario to 14 other Canadian and American jurisdictions on 18 indicators, such as housing affordability, population growth, median age, labour force participation rate and the level of women in the workforce.

“Ontario’s overall ranking is a middling ‘C’ grade, reflecting some strengths, but revealing several areas that require improvement,” it says.

The province ranked behind Minnesota, Texas and Indiana and was tied with Michigan, Georgia, North Carolina and Quebec.

But Ontario was ahead of New York, Ohio, Pennsylvania, Illinois, Kentucky, and South Carolina, thanks to “a diverse and skilled workforce, providing a talented pool of workers for businesses.”

“Combined with high general and female participation rates, the labour force is the strength of our province,” the report says.

Lowering the province’s grade — in the business lobby’s view — was a “costly minimum wage,” at $14 an hour.

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That rate is scheduled to increase to $15 next Jan. 1 if the governing Liberals or the New Democrats form the next government.

However, the Progressive Conservatives, who lead the public opinion polls, have vowed to freeze it at $14.

In terms of corporate income taxes, the Liberals have said they would keep the 11.5 per cent rate, while the NDP would raise it to 13 per cent and the Tories would lower it to 10.5 per cent.