Front Seat: If You Thought the HST is Ridiculous…Get a Load of This!
Effective July 1st, the price of many goods and services in the provinces of British Columbia and Ontario rose when the Harmonized Sales Tax (HST) came into effect, replacing the Provincial Sales Tax (PST). What this means to people in these provinces is that every good or service a car enthusiast purchases will now be subject to the HST at the rate of 12 percent in B.C. and a whopping 13 percent in Ontario. For example, next time you go to buy a used car privately or have that part installed at your local shop, the full purchase amount will be subject to HST, not the single GST or PST tax it was only subject to last month.
But fear not. Every politician in the governing parties can’t wait to tell you how this is a fair tax and will benefit everyone long term by creating jobs and attracting investment. What they fail to tell us is what kind of jobs it will produce and who these people are that are chomping at the bit to invest here. No matter how much they sugar coat it, the reality is that they/we are broke and there is a need to generate more revenue to provide the government services we all agree are priorities like health care and spending a couple of billion on a two-day summit…or at least health care.
But, this, my friends, pales in comparison to our neighbours to the south in the state of California. The state which already has taxed their subjects to death and beyond through their “green initiatives” and any other way they can get their hands in your wallet has come up with a doozie.
Lawmakers are actually considering selling advertising on state license plates!
A bill has been proposed with little opposition by Democratic State Senator Curren Price in order to help close the state’s $19.1 billion deficit; a study bill has been introduced that allows the DMV to explore the feasibility of digital license plates. The new tags would display the number when the car is moving, then show ads and public service announcements any time the car stops for more than a few seconds.
Governments across North America are slapping anyone talking on their cell phone while driving with tickets for lack of care and attention but good ol’ California can’t see a thing wrong with motorists staring at an ad for the local strip club on the car in front of you. What’s next? Selling Budweiser a logo placement on driver’s licenses to raise some cash? Go Arnie Go!
Until next issue…Keep it Rollin’
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Times have changed, we’re emerging from the biggest global economic downturn in 80 years. The two sales tax system using the old PST and GST puts our businesses at a competitive disadvantage.
Experts agree. Economists, businesses and investors say that the HST is the most important thing we can do to strengthen Ontario’s economy. Economist Jack Mintz says that our tax cuts and the HST will bring $47 billion in new investment to Ontario and create 600,000 new jobs. It would also help protect those things – like our schools and hospitals – that make Ontario a better place to live.
In more than 140 countries and four other provinces, value-added sales tax like the HST is already a fact of life. It is modern, efficient and necessary to compete in today’s changing world.
We have a choice. We can refuse to fix what’s broken and resign ourselves to the idea that Ontario would be less competitive. Or we can embrace change and do what it takes to build a stronger Ontario. In Ontario we’ve made our choice. We’re taking a tax system that was made for a bygone era and rebuilding it to help secure Ontario’s prosperous future.
For more information visit http://www.ontario.ca/taxchange