Re:Harmonized sales tax will create jobs, Opinion Aug. 21
Canadian Manufacturers & Exporters Ontario is a lobby group for manufacturers and exporters and their position does not allow for the devastation that is likely to occur within the service sector of Ontario's economy after the implementation of the HST in July 2010. To suddenly force a new 8 per cent tax on the vast number of small service businesses just when we might be starting to see the beginnings of an economic recovery will dramatically offset the number of jobs that might be created by the manufacturing sector.
I do not object to the concept of combining PST and GST but the 13 per cent HST places a new 8 per cent tax on all the services that have never been subject to PST, all at one time. The effect could easily be absorbed if phased in over three to five years.
The entire burden will be borne directly by the public. The $1,000 payoff by Queen's Park will barely soften the blow. Will any of us receive raises in salary to deal with an 8 per cent increase in costs? Not in this life!
AUTHOR: Robert Williamson, Senior Member Canadian Bookkeepers Association, Port Credit
August 23rd, 2009
SOURCE: The Star
1 Comment
I run a 1 man business. The HST will certainly be helpful to my business because I will no longer be paying PST on my business purchases. This will save my company about $1000 per year. But: I am against how this tax is being implemented; and this is where it is bad for business. It is a tax hike to the consumer on certiain currently untaxed goods. Certain businesses are going to be devastated by this tax hike; like housing and professional services. There are dozens more which i cannot even begin to name. Mr McGinty should have announced a reduction in the combined HST rate and cut Ontario's take from about 8% to about 5% on a wider range of services. This is a prime example of foolish implementation of the right policy.
Mr McGinty - fix it, or you may find that no one will hire you as a consultant when your term as premier is over!
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