The Canadian Press
TORONTO — Ontario families will end up paying hundreds of dollars more at the pump once the new harmonized sales tax kicks in July 1, the NDP warned Monday.
The average family with at least two children will pay $232 more a year to fill up their car, according to figures calculated by the party using a Statistics Canada economic model.
The government will collect $895 million through new taxes on gasoline when it merges its sales tax with the federal GST, said NDP Leader Andrea Horwath.
"That's on top of the new taxes just to turn on the lights," she told the legislature. "That's on top of the new taxes just to turn on the heat and keep the house warm."
Taxpayers have plenty of information from the government about how the HST will affect them, including the 600,000 new jobs it's expected to create, said Premier Dalton McGuinty.
"Fortunately, there will come a time very, very shortly when the rage associated with the rhetoric will abate and our new tax reforms will become the reality," he told the legislature.
"Then people will have an opportunity for themselves to imagine and to experience exactly what is happening as a result of our changes."
The HST isn't the only money grab, said Opposition Leader Tim Hudak.
The average family has been paying $2,700 more a year in new taxes and fees on everything from tuition to electricity bills since 2007, when the Liberals won a second majority government, he said.
"This simple basket of goods and services we all use every day is becoming unaffordable under the McGuinty government," he said outside the house.
Revenue Minister John Wilkinson said drivers will see an eight per cent hike at the pump when the HST takes effect, because taxes are built into the price per litre.
"When we harmonize our sales tax, it means that about 17 per cent of the things that we buy every day are going to see an increase in the sales tax," he said.
But the new revenue will be used to cut income and business taxes by $10 billion over the next three years, Wilkinson added.
The NDP released figures last week that suggest families will pay hundreds, if not thousands of dollars more in taxes once the single sales tax takes effect.
The party calculates that the average Ontario family will pay $794 more in taxes every year if businesses don't pass on their savings to consumers, and $638 a year more if businesses do lower prices to reflect lower input costs.
The governing Liberals are offering one-time payments of up to $1,000 for families and $300 for singles to offset the initial impact of the HST.
McGuinty pointed out that the HST has received the support of both the NDP government in Nova Scotia -- which is hiking the tax to 15 per cent from 13 per cent -- and such prominent Conservatives as former premier Mike Harris and federal cabinet ministers Tony Clement and Jim Flaherty.
Link: http://www.cp24.com/servlet/an/local/CTVNews/20100510/100510_gas?hub=CP24Home
May 16, 2010 at 5:57 PM
The way life was in the past has vastly changed to the current present. We see various changes that may have been seen as ridiculous to think about back then but now have become a reality. This brings me to my opinion of this article about Harmonized Sales Tax (HST), which in my opinion; I do not feel is the correct way in which the Canadian government should be receiving tax-payers hard earned money. I understand that in life nothing is free but the Canadian government is already taking vast amounts of money from citizens which could result in many families to go homeless and penniless.
At the same time, from reading this article it has given me a positive outlook on the Dalton McGuinty and the Canadian government, specifically the area where it explains, “Taxpayers have plenty of information from the government about how the HST will affect them, including the 600,000 new jobs it's expected to create, said Premier Dalton McGuinty.”
My opinions of the HST go back and forth but it has given me mixed emotions because there are both positives and negatives to it. Although the HST provides 600,000 new jobs but at what price? Sure, 600,000 new jobs will be made but how will I, a normal Canadian citizen, obtain it? I being part of a family of middle class citizens have realized that with this new tax soon to be in effect, almost everything I purchase changes from clothing to food.
From various civics class discussions, a way that I learned could be a solution or at least a start to a solution is having different types of taxes for different types of people. Meaning the wealthier you are the more taxes you pay but as negative as it may seem, in the process certain benefits could be given in order to give back to the tax payers.
Also, confusion came to mind when reading this article because I remember hearing somewhere about how the Canadian government use vast amounts of the tax payer’s money to pay for many unnecessary things such as limousine rides, private jets, gourmet dinners (at meetings), etc. If this is true, I feel that the Canadian government should change the lifestyle a bit and maybe fly first class, business or economy rather than paying for a whole jet just for a few people and also, instead of using such a large vehicle like a limousine, use a taxi or rent a car to save money. I was wondering if this was fact or fiction... If anyone could clear this up it would greatly be appreciated.
May 30, 2010 at 10:01 PM
Despite the opposition party’s firm disapproval of the Harmonized Sales Tax(HST), I think this tax will be very beneficial for Canadians. I believe that with this tax, it will generate more jobs, create more services, and prevent a depression.
I think that by collecting a small amount more of tax money, there will be more jobs created. The government could use this money to fund projects such as: building new schools. This would fabricate a variety of jobs as many people such as: teachers, janitors, and principals are needed to help run a school. By providing more jobs, the unemployed can benefit greatly from the job opportunities. It allows them to possibly be employed and earn more money for a more flexible and enjoyable lifestyle.
Investing money to create new jobs also means that there will be more services available to Canadians. For example, if the government took that money and invested it into a new hospital to create new jobs, it means that Canadians will have more medical centres available to them. By creating new jobs, citizens will have more services; therefore, increasing their standards of living.
Furthermore, I think that it will help our economy from going into a depression. The government could use this extra money to invest it into programs that will prevent us from going into a depression. Some examples of these programs include: unemployment insurance. By having these programs, it assures citizens that in times when our economy is not doing so well, there will be programs that can help the citizens who are affected and only resulting in a recession for our country. Having this HST sales tax could potentially prevent us from suffering from a brutal depression.
I believe that the HST sales tax is a positive change for Canadians. It will benefit us in ways that are unimaginable including: decreasing the unemployment rate, enhance our way of life and help us in times of economic difficulties. Some could say that the Harmonized Sales Tax is an investment for a better future.
By:Nancy Khuu