TORONTO - Ontario's New Democrats have struck a deal to prop up the minority Liberal government in exchange for a new surtax on incomes over $500,000.
NDP Leader Andrea Horwath says the tax on what she calls the ultra-wealthy helps make the Liberals' budget a little more fair.
She says the NDP will not vote against the budget in a crucial vote Tuesday, which means the minority government will not be defeated.
Premier Dalton McGuinty emerged from a meeting with Horwath today to say he had agreed to hike taxes on the rich in order to get the budget passed and stave off another election.
McGuinty says all $470 million raised from surtax will go towards paying down Ontario's $15.2-billion deficit, and will end when the budget is balanced in 2017.
He dismisses criticism that he has again broken his promise not to balance the budget by raising taxes.
McGuinty also agreed to increase welfare rates by one per cent and create a $20-million fund to help rural and northern hospitals.
The Progressive Conservatives have vowed to vote against the budget on Tuesday, so the Liberals need NDP support or they'll be defeated.
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