Thursday, December 31, 2009

The H.S.T. Tax

For anyone who hasn't been following this, the H.S.T. is the "Harmonized Sales Tax". It's a new consumption tax that they're trying implement. Ontario's one of the provinces pushing to make this happen. The point of the tax is to eliminate costs by blending the PST (8%) and the GST (5%). The theory is that by blending the two taxes together, less paperwork and administration will be needed - in turn, saving Ontario money.

This all sounds great in theory though, but "progress" comes with a price! Guess who's shouldering the increased costs? Not the corporations or businesses, but we are.

Here's an e-mail that I sent to my MP:


I would just like to know how the HST tax benefits anyone within your constituency...

The way I see it, it's just a way of shorting out costs & administration, while we face a slight increase in taxes - it's a money grab. If the benefits are supposed to trickle down from this years after, I'd rather hold on to the money I could be saving. Regardless of what incentives, vouchers, or discounts you guys may offer...they'll be useless within a couple of years as the standard of living continues to go up. I can't see this as positive in any way for your respective constituency, the people who voted you in.

Please tell me I'm wrong.


- knowledge

The problem with the HST is that it either charges us taxes on things that we didn't used to get taxed on, or it slightly raises what we did used to get taxed on. Here are some things that we'll be paying more for:

- Gasoline

- Utilities (heating/hydro/natural gas)

- Internet bills

- Magazines

- Adult footwear under $30

- Admissions under $4 (e.g., swimming pool, skating rink)

- Veterinary care

- Personal services (e.g., hair stylist, massage)

- Professional services (e.g., legal, accountant, mutual fund fees)

- Membership fees (e.g., gym)

- New homes over $400,000

- Real estate commissions

- Commercial property rentals

- Condominium Fees

- Landscaping

- Vitamins

- Most admissions to live theatres

- Taxi fares

- Conferences and seminars

- Dry cleaning

- Carpet cleaning

- Labour costs related to home renovation

- Motor vehicle services (towing, car washing)

- Ice rink rentals

- Hotels

- Overnight summer camps

- Domestic air travel

- Domestic rail travel

- Bus tickets

- Christmas trees

- Electrical and plumbing services

- Snowplowing

- Bicycles

- Funeral costs

- Postal stamps and courier fees

- Green fees

If you can break down what your family spends on these things, you'll realize that their $1000 incentive doesn't do anything. We're already facing a flurry of green fees (think of all the ridiculous "environmental taxes" that we get). Homeowners are going to have to shell out a lot more. Condo owners will have to pay more. People doing home renovations are going to be ridiculously taxed. Furthermore...heating, hydro, and gas bills are going up (as if they didn't go up enough when Harris privatized them in the 90's).

The Irony is that the Liberals are the ones implementing this, not the Conservatives. The only ones really opposed to this are the NDP. Elections are in October 2011 - make sure to vote. I'm still trying to figure out which party I agree with, but I guess I'll decide when that time comes.

But we can definitely add another lie to McGuinty's list. Instead of saying "this will be better for you" why didn't he just say that "we got hit by the recession, are in deficit, and need the extra money?" or that "Ontario sucks at managing money". But then he'd have to admit that he made a mistake...which means that he told the truth. That's something that he doesn't like to do

Toronto, I love you and all...but I'm scared to see where the city's headed when I'm in my mid-20's.

Oh, and this is only part one of my piece on ridiculous taxes. Wait 'til I get to the things they've BEEN adding or raising.

However, I did manage to find a report(Toronto Star: "HST won't hurt much, report says") that "shows" how the HST is "virtually revenue neutral". It's a good thing that report was paid for now, because they saved 8% on taxes.


- knowledge


  1. hmm, To be honest I'm not researched or knowledeable enough about the topic to give a proper comment on this post but I will say that I am also afraid of what Toronto is going to be like by the time were in our mid 20's. And I do agree about the HST tax being bullshit because it is. I mean in essence what it trickles down to is that we have to pay more which is always bad and of course it'll take years to see the "benefits" of such a tax. Basically, I commented just so I could say vote "NDP!" lol. I could list reasons why but to be honest the only reasons why they come out up top is because they are for the people and workers of Canada that's their aim and I believe in them. Anywayz, this whole HST and Ontario going downhill is the reason why I am probably going to try and find a job in the middle east somewhere. Not only is the standard of living much better, it's a fashion forward country and I'm talking about Saudi Arabia, Quatar, Bahrain and Dubai here. But yes. HST SUCKS!

  2. ps. not country, I guess regions of the world*



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