The harmonized tax – more harm than harmony

In these tough economic times, the last thing we need are more tax hikes.
Ontario’s new tax on just about everything – the harmonized sales tax -- means ordinary people will pay more for meals under $4, cellphones,  telephones, Internet connections, , coffee and coffins.

Other items you will now pay 13 per cent tax include: newspapers and magazines, hair cuts, stamps, gym fees, audio books for the blind, snowplowing, dry cleaning, car washes, veterinary care, bus fares, accountant services, courier fees, landscaping, moving vans, grass cutting, furnace repairs, train fares, tobacco and legal services.

The Ontario Real Estate Association estimates that the new tax will add approximately $2,000 to the cost of a real estate transaction. That's $2,000 out of your pocket. That's the result of the PST being applied to legal fees, moving costs, mandatory home inspections, commissions, mortgage insurance premiums, title insurance-the list goes on. This tax grab will add over $300 million a year to the cost of resale home transactions in Ontario alone.

When you add it all up it’s a bigger hit than the so-called health tax.

Realtors, automakers, laid-off steelworkers, farmers, families, singles, taxpayers pretty much everyone-are calling, e-mailing, or writing to newspapers, MPP’s and anyone else who will listen to lodge their complaints. And many feel government is insulting their intelligence with the harmonized sales tax rebate cheques – paying them off with their own money.

Make your voice heard. Don’t hesitate to contact my office and let us know how this new tax is impacting you, your families, and your businesses.

In typical fashion, this government has attempted to hide what is really happening with what they want people to think is happening. To this end they have grabbed headlines across the province with the term "harmonization," which sounds so very subtle and innocent - what it really means is “tax hike”.

Government’s disingenuity is more apparent when you consider the game they are playing by rebating $1000 to households who earn less than $160,000 annually to cover their HST tracks.

T he rebates only cover the first year – the tax continues every year.

As Interim PC Leader Bob Runciman put it: “It's really a triple bribe, the scheme to send three "McGuilty" cheques to taxpayers. The first cheque is hush money to keep people quiet about being gouged. The second cheque is the Christmas cheque (sent out just before Christmas 2011). The last cheque, which coincidentally will arrive in people's mailboxes in June 2011, is an attempt, in our view-I think most Ontarians will share this view- to buy their votes for the October 2011 election.”

It should also be noted that, while single folks drive to work, buy gas, buy groceries and newspapers, have their hair cut, and have home heating bills like everybody else, they will be receiving significantly less “rebate” than couples who do the same. Singles pay the tax, yet they will get a mere $300 rebate, as opposed to the $1,000 for families. Why is this government penalizing singles? Why penalize some of Ontario's most vulnerable citizens; for example, seniors living on their own?

It's clear the 13 per cent harmonized sales tax has struck a sour note with the people of Ontario. It’s apparent -- more harm than harmony.