HST equals hit to the pocket book for Ontarians

As the province draws closer to making the HST a reality for Ontarians the move is drawing criticism from all corners including North Bay City Councillor Mike Anthony.

The harmonization of the Federal GST and the Provincial Sales Tax is a move designed to make life easier and less expensive for businesses. Anthony says that isn’t the case and the issue has been under scrutiny when the public realised items currently subject to only the GST will now have to pay PST was well. So in essence Ontarians will see an eight percent cost increase on many items they use on a daily basis and they include gasoline, natural gas, electricity, taxi fare, airfare, funerals, the list goes on.

“The good news is; it looks like the province is starting to feel the heat and backlash of the Harmonized Sales Tax, the HST,” says Anthony.

“This week in Toronto, the Liberal government announced it wanted to save taxpayers money. They announced your morning coffee; your daily paper and fast food under $4 would be exempt from additional PST being added. This is a small victory but not a complete one, residents of North Bay and across the province need to keep the pressure on and show that people cannot afford this new tax on items like gasoline, for heating their homes, and many others.”

“The province's proposed HST is going to be costly for all of us. It means that many items we previously only paid GST on; could have PST added. The province wants to make paperwork easier for businesses by blending the two taxes into one. The problem is they are planning to simply add a new 8% to items that had previously only been subject to the 5% GST levy.”

Anthony says North Bay City Council has been active on this issue; trying to lessen the impact on taxpayers over the past several months.

“The most recent motion on September 21st requested that the province re-consider how it implements tax harmonization. It made clear that instead of adding a new level of tax to things currently subject to only GST, those particular items should remain exempt.”

“There's no question the harmonization will be good for business, easing the burden of dealing with two taxes. But we have to keep pushing the message that items that now face only one tax must remain that way,” he states.

“I am expecting to craft a motion soon; to again make our point on behalf of ratepayers. We need to keep hammering on this issue. If it upsets you let Monique Smith, your Member of Provincial Parliament, know. Voice your opinion publically.”

Meanwhile, MPP Monique Smith disagrees noting the move will help Ontarians increase business investment and create new jobs. Complete details contained in the news release below.

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Finance Minister Dwight Duncan Monday introduced the Ontario Tax Plan for More Jobs and Growth Act, 2009 which, if passed, would increase business investment, create new jobs, and raise incomes for Ontarians.

Along with the proposed Harmonized Sales Tax (HST), 93 per cent of taxpayers would pay less personal income tax, while 90,000 low-income Ontarians would no longer pay any provincial personal income tax. The province is also proposing to almost double the property tax and sales tax credits, putting more money back in the pockets of more Ontarians.

Proposed tax cuts for business would enhance the benefits of the proposed HST by attracting more business investment into Ontario and creating even more jobs.

The personal income and corporate tax reforms include:

• a 16.5 per cent tax cut on the first $37,106 of taxable income—which would make Ontario’s the lowest personal income tax rate of any province in Canada;

• an average personal income tax cut of 10 per cent for Ontario families and individuals earning up to $80,000;

• an 18 per cent tax cut for small businesses to help create jobs in our communities; and

• a 17 per cent tax cut for manufacturers, which will also help create jobs.

“This tax reform plan will help Ontario remain strong and competitive, and create new jobs in our communities,” said Monique Smith, MPP for Nipissing. “We need to keep our economy strong to protect the important services, like education and health care that we’ve worked so hard to build.”

QUICK FACTS

• A recent study, Ontario’s Bold Move to Create Jobs and Growth, by Jack Mintz, states that the HST and tax reform would significantly increase jobs and capital investment, and lead to higher annual incomes for Ontarians.

• The Mintz study estimates that within 10 years, 591,000 net new jobs would be created and annual incomes would increase by up to 8.8 per cent.

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