The Reality Behind the Proposed Provincial Harmonized GST and PST Tax

istock_000002998026xsmall1 A REALTOR friend of mine, Trish Santos, a Sales Representative with Realty Executives Plus Ltd., has done some serious due diligence on the proposed harmonization of the GST and PST. One of my concerns is that the Provincial Government has slipped this in under the new Budget without proper input from the Public. Here is some of the concerns that we both share. Please give this a read if you think this harmonization is “good for the Province”.

As hopefully most of you are aware the Ontario Government is looking to pass their budget which includes harmonizing the GST and PST together effective July, 2010.
Dalton McGuinty and his Liberal caucus want us to believe that this will help our economy, create jobs and put money back into our pockets. 
The only exceptions are: children’s clothing and shoes, child car seats and boosters, diapers, feminine hygiene products, books, and new homes costing under $400,000.
Buyers of homes costing $400,000 to $500,000 can claim a proportional tax credit.
To offset the fact that taxes will rise on nearly everything from Big Macs to new homes costing more than $500,000, families earning $160,000 or less annually will receive $1,000.
The Ontario Government will be sending out ONE TIME ONLY cheques in June 2010, December 2010, and in June 2011 – conveniently just three months before the next election. Single Ontarians earning $80,000 or less will receive three $100 cheques for a total of $300.
So for the ONE TIME ONLY rebate from the Ontario Government it will permanently cost us an 8% increase in everything that we do!  Sounds like a fair trade off?

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The previous costs are only the tip of the iceberg!  Any other user fee or service that has had only GST (5%) added to the totals will now be increased by another 8%!  That includes:   Accounting fees, legal fees, lawn care programs, any construction/renovation, trades persons, repair charges, sporting activities, extra curricular activities for your children or yourself, auto service, medical/holistic, chiropractors, massage therapy, vet bills, hair cuts, manicures, recreational activities, bus fares, audio books for the blind, tuition fees, day care, real estate commissions, insurance, Energy Star appliances, postage stamps, theatre admission, fast food under $4.00,  footwear less under $30.00 and so much more right down to the day you die, your funeral costs!
Please take the time to calculate what your own cost are and you will be shocked at what it will mean to you on a yearly basis.
This ONE TIME payment from the Ontario Government is an insult to Ontarian who will have to bear the burden for a lifetime of increased taxes.
I urge every one of you to send a letter clearly telling our Government that they are going too far with the implementation of the HST and that you DO NOT want it before it’s too late.

Please take the time to write to you local MPP and send a copy to Premier Dalton McGuinty and Finance Minister Dwight Duncan:

Hon Dwight Duncan – Contact Information
dduncan.mpp@liberal.ola.org
Ministry  Ministry of Finance
7th Floor, Frost Building South
7 Queen’s Park Crescent
Toronto, Ontario M7A 1Y7
Tel  416-325-0400
Fax  416-325-0374
Ministry   Ministry of Revenue
6th Floor, Frost Building South
7 Queen’s Park Crescent
Toronto, Ontario M7A 1Y7
Tel  416-325-0400
Fax  416-326-9331
Hon Dalton McGuinty – Contact Information
Queen’s Park   Room 281, Main Legislative Building, Queen’s Park
Toronto, Ontario M7A 1A1
Tel  416-325-1941
Fax  416-325-3745
Constituency   1795 Kilborn Avenue
Ottawa, Ontario K1H 6N1
Tel  613-736-9573
Fax  613-736-7374
dmcguinty.mpp.co@liberal.ola.org

All current MPP members can be found at http://www.ontla.on.ca/web/members/members_current.do?locale=en

The Honorable Jim Wilson of Simcoe-Grey has also a petition that you can sign www.jimwilsonmpp.com

Remember this is a permanent tax that will not be reversed and all of us will suffer for it.

Related Posts:

The New Provincial Harmonized PST/GST and the Building Industry.

Real Estate: My New Job as a Tax Collector

8 Responses

  1. Hazel, Toronto, Canada

    This ONE TIME Proposed Provincial Harmonized GST and PST Tax payment from the Ontario Government is an insult to Ontarians who will have to bear the burden for a lifetime of increased taxes.
    This cannot happen and should not happen – this is ridiculous!!!

  2. Victoria

    I’m not in real estate, but I found your blog in my attempt to find other business people out there as concerned about this harmonized tax proposal as I am. As a small communications firm that now charges GST but will have to comply to McGuinty’s new reality, I am very worried. This could really harm my business.
    There really is a “ceiling” when it comes to some services.

    I will definitely be writing to the provincial government about this, but what is baffling me
    is the deafening silence on this. Why is there
    so little backlash about this? It seems that this is going to slip silently and noiselessly into law. It really should be debated vociferously and then stopped! Why is there no outcry? No petitions?

    The small business owners of Ontario should be
    revolting en masse.

  3. Richard Silver Post author

    You are right and sadly, the Liberal Government has slipped this through with little attention. People will wake up but by then it will be too late. Let’s help get the message out there.

  4. Victoria

    Yes, definitely. There needs to be a real groundswell of resistance from the people of this province for any effort to be truly effective. So I guess we have our work cut out for us! It’s as if it hasn’t really “registered” with people. I find it so odd. I belong to several professional organizations whose members that do run small businesses will be affected by this. Not a peep! Will they all wake up next June when it is too late? Let’s hope not.

  5. AN

    !?!?!?!
    I told my friends not to vote for this sucker… they still did now they are telling me how wrong they were.

    This guy was re-elected, got a little over excited then he gives out a vacation day that he labels “family day” (we all know it’s McGuinty celebration day). Then, gives himself a raise and now wants to tax everyone 8% more under the pretext it’s good for Ontarians. What school did he go to? His degree must be “Master of how to lead fools and laugh at them without getting caught”

    For all those who blindly vote liberal just because ‘red’ looks cute, think again.

    My employer didn’t approve of any pay raises this year because of the ‘economy’, my net income is slightly lower because the province taxation changed (according to HR) and now 8% more tax when I start using the money I worked for.

    But again who am I to say anything; I m just an immigrant who can’t vote. So I pay taxes shut up and watch. If I say a word I hear “if you don’t like it go back to where you came from”

  6. Victoria

    Hello Richard:

    I actually wrote to McGuinty in protest. To his credit, he did reply! However, it is all so much
    PR blah-blah-blah, and as a writer, I can spot
    that stuff a mile away.

    But here is something hopeful: I received in today’s mail a one-page summary of the McGuinty HST tax, courtesy of the Leader of the Official Opposition and members of the PC Caucus at Queen’s Park. They have sent the cards out to inform the public and to invite people who are opposed to it to call or email them.

    The email address, in case readers did not receive this, is: olo@pc.ola.org

    For those who want to blow off a little steam too
    (not always that easy in print, you can telephone:

    416-325-6775

    You will be greeted by “Taxbusters Hotline”!

    They are eager to hear from everyone, as they are
    collecting names in order to mount a formal protest
    about this in the legislature on behalf of the citizens of Ontario.

    I happily gave them my name. Please pass this number
    and email on. The more names they collect, the better.
    Of course, it doesn’t necessarily mean McGuinty will do anything – he’s such an intransigent fence-sitter.

    By the way, I am still looking, in vain, for more Ontarians outraged by this sleight-of-hand tax grab that threaten small business owners and independent contractors around the province. Why no one is on the lawn of Queen’s Park screaming about this like other groups with gripes tend to do I have no idea.

    I guesss we are a civilized bunch, we small business owners of Ontario!

    Cheers for now
    Victoria

  7. Victoria

    Check out the response to Sympatico/MSN’s Question of the Day for Wednesday, August 26, 2009:

    Reports say the new 12-per-cent harmonized sales tax is good for businesses but means consumers will pay taxes on more items. Should all provinces adopt HST?

    Yes 18%
    No 75%
    Not sure 7%

    Seems we are not alone in our rejection of the HST.

  8. Richard Silver

    Thanks Victoria…I wish it was 12% but it is 13%. You’d think if the Province was able to grab that new cash, they would be moving to lesson their portion. At least a 10% HST would be more palatable than a 13% HST…

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