Voters Who Voted For Change Are Getting It

The HST has a 10% solution

By SUN MEDIA

Here are the realities Ontarians will face starting July 1, 2010.

First, there is going to be a 13% Harmonized Sales Tax.

While Prime Minister Stephen Harper and Ontario Premier Dalton McGuinty approved the deal, no opposition party in Ottawa or Queen's Park with a chance of winning the next election has promised to rescind it.

Second, the HST means Ontarians will be paying more for goods and services than we do now.

It is best understood as a massive expansion of the 8% Ontario sales tax onto all goods and services, with very limited exceptions.

It means an 8% price hike for such basics as gasoline, home heating and electricity, as well as hundreds of other everyday goods and services.

It will increase the cost of living for millions of Ontarians.

Third, the $4.3 billion Ottawa is giving Ontario to implement the HST, which McGuinty will spend on three cash payments totalling up to $1,000 for families ($300 for individuals), will not compensate for the higher prices caused by the HST. The reason is the rebates will end within a year, while the HST will be permanent.

MILLIONS WILL PAY MORE

Income tax relief promised by McGuinty to compensate for the HST will still leave millions of Ontarians paying more overall than they do now. As with any new tax, there will be winners and losers. The government will emphasize the winners, ignore the losers and claim everyone will win eventually because businesses will pass on to consumers savings achieved by new efficiencies created by the HST.

Yes, you can insert your hysterical laughter here.

The ongoing blame game between federal and provincial Conservatives and Liberals over who is responsible for the HST, is political noise, irrelevant to taxpayers.

We are calling for both the Ontario Liberals and Conservatives to commit to reducing the HST from 13% to 10%, by dropping the 8% provincial sales tax to 5% , as Harper earlier cut the 7% GST to 5%.

Apparently this cannot be done under the deal until after 2012.

Which should make it a huge issue in the October, 2011 Ontario election.