Bayshore Broadcasting Corporation

From Where I Sit

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April 17, 2009
John Divinski
by: John Divinski

No Harmony With HST

The proposed harmonization of the provincial sales tax, along with the federal goods and services tax, known as the GST, isn't spelling harmony at all.

The provincial Liberals say this is really going to create some savings for consumers by marrying the two.

The problem is, it really isn't spelled out who the savings are going to affect.

One camp says merchants and business people are going to see their accounting procedures simplify with this new tax.

Maybe it will and maybe their operating costs will come down but you know and I know the temptation will be too great to pass any semblance of a saving on to the consumer.

The savings, if there is any, will stay right with the person that was saddled with the accounting in the first place.

Another camp-and this one you've heard quite a bit about-says the consumer is going to get stiffed with increased costs on just about everything because harmonization means not only combining the two taxes into one but levying it on just about everything including things that never before had provincial sales tax.

Simply put, it's going to cost us more to live.

Does that spell harmony to you?

The Ontario Chamber of Commerce is thrilled about the move by the McGuinty government because they've been lobbying for just this sort of thing for years.

They feel we're all going to come out ahead on this, especially the business world-the ones they represent.

Strangely I've talked to several Chambers of Commerce in our region and frankly, they're not particularly fussy about the harmonization tax.

Now to be fair, most have indicated they want more input from their members before taking a stand but you can tell they're not totally sold on it.

This new era of taxation-that was never going to happen during this term of the McGuinty government according to election promises-is ready to kick in a year from now.

Here's some food for thought.

If this idea is so great, how come the government is going to bribe us with our own money with three one-time cash payments to help ease the pain?

This is one marriage I can do without.

We're not the bride; we're not the groom.

We're poor old dad who has to shell out the cash to make this marriage work.

From Where I sit, I'm John Divinski.

 

From Where I Sit is on 560 CFOS Mondays, Wednesdays and Fridays 7:08 am and 5:08 pm

Posted: 2009-04-17 01:46:21

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