Scrap the 13 per cent Harmonized Sales Tax

Earlier, I wrote of the long list of problems and pocketbook concerns of Mr. McGuinty’s harmonized sales tax (HST).

It’s become clear - from the growing tide of calls, municipal resolutions and reports of dissent in government MPP ranks - that the province’s 13 per cent solution is no solution at all for people in Ontario.

The recent annual conference of the Association of Municipalities of Ontario (AMO) illustrated just how far the Premier’s hopes to sell the HST proposal have gone off the rails.

In summing up AMO, the Thunder Bay Chronicle went so far as reporting, “The respectful, even warm relations that usually mark government conferences were suspended in Ottawa this week as Ontario Premier Dalton McGuinty tried to convince municipal leaders that his plan to harmonize provincial and federal sales taxes is the right thing to do. Rather than the polite applause that often greets controversial ideas from senior leaders, there was stony silence as mayors and reeves from across Ontario let McGuinty know he's on thin ice.”

The reaction from municipal leaders shouldn’t have been surprising given that councils throughout the province have been supporting resolutions aimed at reducing the impact of the HST proposal.

Cornwall council recently approved a motion highlighting the fact that, “the Harmonized Sales Tax will negatively impact the registration costs for minor sports by an increase in facility rental fees and registration fees; and… prevent some youth from participating…” Cornwall has been joined by a number of other municipalities in asking the province to, “exempt items related to the rental of recreation facilities and registration fees for minor sports to ensure that all youth are able to afford to participate.”

Meanwhile, the Town of Innisfil also received significant municipal support in red flagging the HST eight per cent hike to already rising electricity rates. Innisfil and like-minded councils are requesting Mr. McGuinty, “exempt electricity sales from the provincial portion of the single harmonized sales tax at least until the stranded debt of Ontario Hydro is fully retired”

Closer to home South-West Oxford, is urging government to, “ensure
that municipalities in Ontario receive a 100% rebate of the Harmonized
Sales Tax (HST).”

A week after AMO, the McGuinty government gathered all its members in Toronto to reportedly quell dissention in the ranks.

A Toronto Star report following the meeting indicated, “McGuinty acknowledged some blowback over the HST - including from within party ranks.” The article goes on to quote the Premier as admitting, “even Liberals talk about it.”

By the end of the week there was little doubt that the earful MPP’s have received over the summer was beginning to strike a chord – the harmony of those once supporting the initiative sounding evermore out of tune.

Unnamed government members were quoted as stating, “As soon as we say you're going to get a cheque, the reaction we're all getting is people are p***ed,” referring to the government HST rebate cheques. One went as far to admit, “Voters are not stupid. People will figure out that we're bribing them with their own money."

Through calls, emails, petitions, and municipal resolutions, it’s clear that the message - as my petition states - “Scrap the 13 per cent McGuinty Sales Tax” is getting through. Those interested in adding their voice can contact my office for more information and petitions.