Will 2010 be known as the, ‘year of the tax’?

Some have suggested that 2010 may well go down in history as, ‘the year of the tax’ in honour of the 13 per cent HST that will hit just about everybody on just about everything they buy.

This is a regressive tax that will hit low to moderate income families the hardest on a host of non-discretionary purchases ranging from electricity, gasoline and home heating to haircuts, funerals and snow removal.

Quite simply, this kind of massive tax grab is never a good idea and this is the worst possible time for an unaffordable tax hike on the items we need and use everyday. Think of the impact on those already struggling to make ends meet – seniors, students, unemployed, and the working poor. For many a 13 per cent hit will force decisions between paying for food or heat or rent.

It hearkens back to the other contender for, ‘year of the tax’ - 2003

In addition to the largest sales tax increase in Ontario history, we should recall that Mr. McGuinty also introduced the largest income tax hike in Ontario history with his crippling health tax. This so-called health tax has seen a typical two-income family pay $720 more per year since it was introduced in 2003. Sadly, those dollars fuelled waste and scandal like eHealth and OLG. This health tax takes more money from Ontarians' wallets than the land transfer tax, tobacco tax, and fuel tax combined.

In doing the research for this week’s column, I came across a CANWEST headline from 2007 - it read, “No taxes if re-elected McGuinty promises, honest”. The promise preceded the announcement of the new Harmonized Sales Tax. Keep in mind this was four years after breaking a 2003 election promise stating that “I won’t cut your taxes, but I won’t raise them either”.  That was made just weeks before announcing the health tax.

At least we can somewhat ruefully give Mr. McGuinty credit for keeping his promise to not cut our taxes!

There is no doubt that Ontario families have been paying more and getting less under the McGuinty government. Since 2003 a plethora of taxes, fees and fines have increased or been introduced under Mr. McGuinty.

To name but a few – beyond the largest sales tax increase in the history of Ontario and the largest income tax increase in the history of Ontario – I draw your attention to increased taxes on beer, wine and spirits, as well as cigarettes, cigars and chewing tobacco. We also see a new land transfer tax and vehicle registration fees in Toronto. And new ‘point of sale’ taxes for electronics and tire recycling.

Other McGuinty spawned taxes, fees and/or increases include: increased corporate income tax, seniors' property tax, driver's license renewals, and cost for chiropractic services, eye and physiotherapy services.

All signs point to the fact that 2010 will be an even more taxing year for Ontario families already struggling to make ends meet under Dalton McGuinty's government.

As I travel with the Finance Committee hearing Ontarians concerns on taxing and other provincial issues, I encourage those who’ve yet to have their say to speak up.

Taxing and spending is largely to blame for the mess we’re in. Let government know, or let me know – toby.barrett@pc.ola.org - how six years of uncontrolled fees, fines and taxes have impacted you.