The Harmonized sales tax is now a sure thing in Ontario.
Consummers will start noticing it on almost every bills they pay, starting in July.
At the pump, on the hydro bill, on gym membership, bicycles, vitamins, summer camps for kids and vet bills, to name only a few.
The GST and PST line at the bottom of the bills will be gone.
But a new one will appear just above the Total line: HST 13%.
It will be a reminder that the cost of living in Ontario is going up, and that monthly budgets for familly are getting a little bit tighter.
The Liberal governement is saying: "Don't worry! The new HST comes with tax cuts for business and low-income famillies, starting this January. So the negative effects will be mitigated."
The Libs seem to forget that a tax cut at the end of the year is almost invisible, compared to the daily reminder of cost increase every time people open their wallets.
As such, any fiscal advantage the liberal governement thinks its giving back to the taxpayer, becomes almost null and void in the arena of public perception.
The liberal government recognises the threat. Thats why they moved to make sure the new HST would not apply on your morning coffee, your fast food meal or your newspapers. Will it be enough to damper the criticism? Likely not. Will it be sufficient to avoid being punished for it at the polls in 2011? That remains to be seen... Liberal MPP's certainly fear so.
Often times, governements that brought a new tax or harmonized their sales tax were punished in the ballot box.
- In 1991 - Saskatchewan conservative Premier Grant Devine dared to harmonized; a few month later he lost 28 seats and the government, to NPD leader Roy Romanow (who had promised to scrap the tax).
- In 1996 The Atlantic provinces harmonized; In Nova-Scotia, 2 years later, the Liberals lost 21 seats.
- In 1958 in Ontario Conservative Premier Leslie Frost introduces the province's first sales tax (3%).People hated it so much they called it the Frost Bite.A few months later, in the general election of 1959, the Conservative lost 12 seats but retained their majority.
Articles
The paradox of insular language
Il y a 2 ans
A report by TD Bank estimates the HST will reduce cost of doing business in Ontario by roughly $5.3 billion and that the majority of these savings will be passed on to customers within the first year. In fact, the majority of items you purchase - 80 percent – will see no tax change at all.
RépondreSupprimerA recent report by economist Jack Mintz confirms that Ontario needs to reform its tax system to create jobs and put Ontario back on its feet. It says, as a result of the HST, within 10 years Ontario would see:
o An estimated 591,000 additional new jobs
o Increased capital investment of $47 billion
o Increased overall annual worker incomes of up to 8.8 per cent, or $29.4billion
We have a choice: we can refuse to fix what’s broken, resign ourselves to the idea that Ontario will be less competitive or we can move forward and get the jobs Ontario needs.
Please visit: http://sites.google.com/site/thetruthaboutthehst/