Ontario Premier Dalton McGuinty is rejecting a call from Canada's banks to cut corporate taxes or risk losing high-paying financial-sector jobs to other jurisdictions.

McGuinty fired back on Wednesday, saying it's no surprise that the banks are advancing their cause as being the "ultimate solution" in the face of the global economic crisis.

He says it would be helpful if the banks mentioned that Ontario sends about $23 billion to Ottawa for redistribution in other provinces — which some have used to slash taxes.

McGuinty says his government has already cut businesses taxes and can't go any further if it wants to climb out of a looming deficit.

He says the banks also have a role to play in stimulating the economy, such as passing on the full interest-rate cut made by the Bank of Canada to ease the credit crunch.

The Canadian Bankers Association — which represents 51 domestic and foreign banks — told Ontario in a carefully worded pre-budget submission to cut corporate taxes in its next budget.

The association is asking the McGuinty Liberals to reduce its corporate income tax rate to 10 per cent from 14 per cent.