Posted by: Nathan M. | December 15, 2009

Hated Sales Tax

TaxMonsterIt seems that the government has decided that it is no-longer accountable to Canadian citizens. Despite the fact that over 70% of Ontario and B.C. residence are against the HST, the government has a full-steam-ahead policy, and is in the process of passing the HST. I had the opportunity to speak to my local MPP’s (Ted McMeekin, as well as Sophie Aggelonitis) about the HST, and they informed me that their government was willing to make the “hard choices” for the good of the country, despite the many criticisms that they were receiving. Apparently, according to Mr. McMeekin, to be a true leader you must be willing to do what people are against. Uhh…news flash Mr. McMeekin-you are elected by the people. You are not, nor is Mr. Harper, our “little Papa” as the Russians call their leaders. In this country, we expect our government to react to what it is that we desire. I will admit that there are times when the government must make hard decisions and go against the majority, but that is only in the defence of the minority. And, although I suppose it could be argued that rich businessmen are a minority, I don’t think that it’s quite the same.

The HST is supposed to help business in Canada, and as a result make Canada more competitive. This is true-it will likely do just that. However, at what cost? The truth is that this bill is specifically designed to help the big guy at the cost of the little guy. Consumers are going to be hit hard by this, despite what the government claims. Our dear friend Ted McMeekin claimed that most consumers would not be hurt by the tax in any way-I get the feeling he hasn’t looked at it very closely. The tax will increase on natural gas (what we heat our homes with), as well as fuel for cars, and many other essentials. Now-could someone please explain to me how this tax is not going to hurt the average consumer? My parents do not own a business, but they do own a house and a car.

In the end, the question is this-are we willing make the gap between the middle and higher classes, and the low and higher classes larger, simply to make Canada more competitive? I truly hope that Canada is not entirely lost in that we are entirely devoted to trying to become more successful economically. I would rather see a whole lot of Canadians with some money in their pockets, then a couple more rich businessmen, but a great deal less Canadians who can survive with kids on one income.


Further Readings

Federal government readies HST bill

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Responses

  1. No one believes that Ontario will emerge from this recession the same as it went in. We need to become more competitive.

    The Canadian Centre for Policy Alternatives issued a report looking at low-income, middleclass and wealthy families and found that the HST is going to be revenue neutral.

    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.

    A 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/

  2. First of all, the idea that 80% of products will see no tax change is a fallacy, because it is gauging the amount of different products, not the prices of those products. If I don’t see a tax change on gum, popsicles, and deodorant, but I do see a price change on Oil, that means that I am only seeing change on 25% of products for taxes, but it is still going to have a very negative impact on my finances, since Oil is worth a great deal more.
    Secondly, I do not deny that this move will assist businesses. However, Canada is not full of businessmen and women-there are middle and low-class people in this country-in fact there is a great deal of them. I am not willing to sacrifice the well-being of all of those people in order to see a few better-off business people. Everybody without a University Education is going to suffer from this-that is the long and the short of it. On paper, it may look great because Canada will have a higher GDP, but in practice, this GDP will become much more stratified between the rich and the poor.


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