Vito Pilieci, The Ottawa Citizen November 7, 2009
Ontario’s plan to adopt the controversial Harmonized Sales Tax could hit a roadblock on Parliament Hill.
Opposition parties said Friday they may not support an upcoming Conservative motion to change federal tax regulations — necessary for the implementation of the combined tax. And since the HST motion could be budget-related and therefore a confidence vote, the issue might trigger a federal election.
A bill paving the way for the HST, which Ontario wants in place by July 1, 2010, is expected to be presented to Parliament by March 31.
The NDP has stated its intention to fight the combined tax. John Rafferty, the NDP MP for Thunder Bay-Rainy River, tabled a motion Thursday aimed at halting the federal government’s promise of $4 billion for Ontario to help it make the tax transition.
“The Ontario government has made it clear that if they don’t get the $4.3 billion to bring in HST that they are not going to go ahead with it … we can nip this in the bud,” Rafferty said Friday.
“Anyone on a fixed income is going to pay a terrible price for this. Even if you look at regular middle-class families with a couple children, it will end up costing them thousands of dollars extra over the course of the year.” John McCallum, Liberal finance critic and MP for the Ontario riding of Markham-Unionville, said his party supports the idea of the HST. However, he said he needs to see the wording before commenting on whether the party would support a Conservative motion.
Spokesmen for federal Liberal leader Michael Ignatieff refused to comment on the HST issue. In September, however, Ontario Premier Dalton McGuinty was forced to withdraw a statement that Ignatieff supported the new tax.
Earlier that month in British Columbia, which also plans to adopt a harmonized tax, Ignatieff referred to the HST as the “Harper sales tax.” He accused the Tories of pushing tax harmonization that will raise the price of average goods during a recession.
One problem for opposition parties? The HST legislation may not be tabled as a standalone motion. The Tories could bundle it in a bill dealing with broader taxation policies or budgetary measures to better its chances of being passed.
A spokesman for Finance Minister Jim Flaherty’s office would not comment on the specifics of the HST bill. He said the government is a strong supporter of the HST and that combining sales taxes will allow businesses to save money and strengthen Ontario’s economy.
The tax would combine Ontario’s sales tax with the federal goods and services tax, and would raise the price of many items not previously affected by provincial sales tax, such as fast food, haircuts and travel.
Consumer groups are lining up against the plan. The National Citizen’s Coalition, a consumer lobby group with thousands of members across the country, has launched a calculator on its website (nationalcitizens.ca) to help consumers determine how much extra the new tax will cost. According to Peter Coleman, president of the coalition, members have said they will be spending anywhere from $800 to $3,200 more a year once it is official.
“We want people to get a rough understanding of what this will cost and we want people to talk to their members of parliament. These guys want to get re-elected,” Coleman said.
Kevin Gaudet, Ontario director of the Canadian Taxpayers Federation, said if the HST cannot be halted, the blended rate should be lowered to around 10 per cent from the proposed 13 per cent in Ontario.
Ontario says the HST would open up savings for businesses and cut back on the costs of administering two different sets of sales taxes.
A recent report by the School of Public Policy at the University of Calgary said the HST will help make Ontario a much more attractive place to do business. The report, released by Jack Mintz, the Palmer Chair of Public Policy, predicted the blended tax, coupled with other tax cuts in the 2009 provincial budget, would create $47 billion in new investment in Ontario and 591,000 jobs over 10 years.
© Copyright (c) The Ottawa Citizen
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RE: Please say NO to HST taxes
To Whom It May Concern:
I am writing to express my very strong objection to the proposed HST implementation. At a time when taxes should be cut to spur economic growth I simply cannot believe that this is even being considered. The Liberal party didn’t tell the truth, they didn’t consult and they don’t have a mandate to bring in the HST. This will have a direct impact on just about everyone’s wallet, and will also have an effect on the tourism, restaurant and housing industries, to name just a few. To add insult to injury, it was very clearly stated that HST was not being considered before the election; to now go ahead with implementing it a few months after winning the election is unconscionable, especially in light of the detailed report from the BC Progress Board that was presented to Gordon Campbell 5 months prior to the election.
I hope that you will take the necessary steps to ensure that this unfair tax is not implemented.
Sincerely,
Democrat
http://saynotohstinbc.ca
Vancouver, BC
Canadian tax payers are used to being shafted by governments, for taxes. However, the HST will cause thousands to be homeless. I am a senior lady living on my own, still paying a mortgage, making payments to the tax man. Selling my car to pay out my utility bills, and to pay my tax bill down. We seniors have no tax write offs so, the tax man wants a big chunk out of a small pension. Low income families and seniors, can only cut back on food, heat, and hydro, and that is what I have done. The unfortunates, pay the same percentage of HST, as the white collar people do. I am forced to sell my house, but, with massive lay offs, I am afraid it will not sell. Rents are higher than my mortgage. I pay more for taxes and insurances, than I do for food. So, you are really put on the street, homeless. Single mothers and children, will also be homeless. And our governing officials, stuff their faces, they give themselves 53% wage hikes. Low income people, live on less than officials booze bill. They cause horrendous expenses, their limo bill is outrageous. Traveling expenses, should be moderated. They really don’t need to stay in a $600 a night hotel. Their expense accounts are also padded. Corruption in this country, has spread to government agencies. I don’t know, what will happen when the little guy can no more, pay for the corruption of all of these officials. All of the citizens that will be homeless, because of greed, is unfair.
I am still speechless about the HST issue. I know that the Liberal party is never to be trusted when you consider their record for honesty and transparency (remember the trashing of the health sector contracts?), but even I never thought they could brazenly say NO to the HST and then days after the election announce we are getting it. No discussion, no referendum, nothing. I am guessing that Ontario bringing it in was enough push for the BC Liberals to decide unilaterally to do the same. It did not hurt that the federal government promised an attractive lump of money as incentive to adopt the HST. What state will BC be in when that money is spent? I suspect we will not be much better off.
How businesses will save millions is not clear to me, nor is it clear that benefits will flow to the consumer in the form of lower prices. I remember that same statement after the GST came in. Lower prices did not flow in any appreciable amount. What has kept products lowcost is the poverty wages in the developing countries that produce goods for the Walmarts of North America.
I salute Manitoba for deciding to withdraw from the program. Their economists have analyzed the pros and cons and concluded Manitobans are not benefiting. Cannot BC learn something from a province that has tried it and rejected it?
I am, so far, able to live reasonably well on my pension, but despair for those who are now counting pennies in order to keep hearth and home together. Young families trying to feed, house, clothe and provide little extras for themselves and their children will be falling farther and farther behind. Home ownership is all but impossible for them as they work at low paying jobs.
Gone are the days of the living wage jobs as companies cut wherever they can, outsource to third world nations, and default on their benefits responsibilities. The mantras “our strength is our people” “we value our employees” “our workers make us strong” are now just empty words.
There is only so much money in our pockets. Don’t dip any deeper.