People aren’t buying the harmonized sales tax

As the McGuinty Government continues its sales pitch for the harmonized sales tax, it seems people in Ontario aren't buying.

Local petitions fighting the sales tax expansion have been garnering a deluge of signatures. During these times, people feel they cannot afford the extra tax.

This harmonization of provincial and federal sales tax – the HST - is nothing new. However, when most of the Maritime provinces merged their sales taxes, they reduced the provincial rate first to ease the impact - Nova Scotia and New Brunswick dropped their rate by 3 per cent, while Newfoundland and Labrador cut the provincial portion by 4 per cent. No similar sales tax reductions are being offered by Mr. McGuinty.

Given the continued job cuts, lock-outs and closures across Ontario it is clear, our economy is still struggling - even Finance Minister Dwight Duncan said as much recently, "I’m not certain when Ontario will return to growth." At a time when people are worried about their jobs and are spending less it is really not a good idea to add a further 8% sales tax burden on items and services we rely upon.

As Opposition Leader Tim Hudak points out, "There is no doubt that this new tax is going to be hard on all taxpayers - it is going to mean an additional $400 will be needed for the household budget and an extra $250 will be spent at the gas pumps.”

As if gas prices aren't high enough already, at a price approaching $1 per litre, this government feels we should be paying an additional 8 cents on every litre pumped.

Those same camping and outdoor trips people are enjoying this summer will not only cost more to get there and back in 2010, but also to simply enjoy what natural beauty Ontario has to offer - I think of increased costs for boat rentals, fishing licences, charters and even wood for the campfire!!

Others in line to feel the sales tax crunch include renters who can expect an added $320 a year to the cost of a $1,000-a-month apartment. That’s the impact of adding the 8 per cent sales tax to goods and services that previously didn’t face the PST — for example, repair, maintenance and property management services, as well as natural gas and electricity.

Ontario’s already struggling farmers will see increased costs for fertilizer, most pesticides, and farm equipment accessories, while they wait to see if point of sale PST exemption goes up in smoke in the name of "harmonization."

The list of those impacted is long, and I encourage anyone interested in finding out how the HST will effect them to check out the sales tax calculator at www.daltonsalestax.com.

As more residents become aware of the long list of items and services they will now be paying 8 per cent more, they are seeing the HST for what it is - another new McGuinty tax increase on just about everything.

If action is to be taken, it must be taken now, as once the HST  is in place and government and businesses have made the necessary changes to charge the combined rate, it will be next to impossible to ever get that horse back in the barn again.

Petitions are available.