HST

This is a response from a Liberal MPP and appears to be very informative but based on McGinty's performance and broken promises, no new taxes, you will have to understand I am skeptical......

Hi,

These are some general facts about the H.S.T.

If an item does NOT attract EITHER P.S.T. (provincial sales tax) or
G.S.T. (goods and services tax) today, it will NOT attract H.S.T. in the
future. If it attracts G.S.T., but NOT P.S.T., the tax will increase on that
item or service by 8% by "blending in" the provincial tax. If the item
attracts P.S.T., but not G.S.T. the tax will rise by 5% by "blending in"
the G.S.T. If you pay both taxes for the item or service right now, then
it will not change other than the two taxes together will be listed as one.
There may be additional exemptions, but as of now, there is none in
addition to what is already GST-exempt. Residential rents are GST-
exempt, so will not attract HST. But heating, hydro, cable, telephone
and related costs will be taxable by HST.

The problem with the H.S.T. on items or services that will not attract
H.S.T. at all (like some foods that don't currently have tax added) is
that prices may increase anyways, as the business that provides the goods
or service you are paying for is hit with an additional tax for all contracted
services, such as transportation, heating, cooling, maintenance, computer
services, equipment purchases, etc. This additional cost will end up coming
from the consumer, while the business may reduce their own costs slightly.

Over time, a business can claim their input credits on both the G.S.T. and
P.S.T. (as a combined H.S.T.) and may be able to reduce some of their
costs over time, but this does not mean they will reduce their prices.
The cost of providing goods and services in itself will likely go up, and not
just because of the H.S.T. (and prices for consumers will reflect that).

The government is saying this will be revenue neutral, which we know it
will not likely be that way for low-income people that pay little or no personal
income taxes. The government is reducing personal and business income taxes
and shifting the tax burden to consumption instead, which hits everybody that
buys subjected goods and services, not just those with higher incomes, and
in turn, that tax is regressive, as opposed to progressive like income tax.
If you do not have a lot of personal income taxes to reduce, but will end up
paying 8% more for many items
Angela

________________________________
From: Michael Bird michaelljb...@gmail.com

here's the scoop on rent and HST:

Dear Mike...
Thank you for contacting our office with your question. Here is some information that I hope will answer your question. Thank you again for contacting our office.

Craig Bradford
Communications Assistant
Constituency office of
Steve Peters, MPP
Elgin-Middlesex-London
Phone: (519) 631-0666
Fax: (519) 631-9478

Under the proposed single sales tax, residential rents would be treated in the same manner as under the GST, which generally does not apply to residential rental payments.