Wednesday, May 5, 2010
The following is from The London Free Press May 5, 2010
Premier Dalton McGuinty has finally admitted Ontario families will pay hundreds, if not thousands, of dollars more in taxes because of the new 13% harmonized sales tax, or HST.
It's about time, but it's really no surprise since basic logic told most of us long ago that if we're paying more taxes on more items than before the change, we'll be paying more, despite promises of transition payments and income tax cuts that are supposed to make the HST a wash.
McGuinty had to concede Ontarians will be paying more, and kudos to the New Democrats for releasing a study showing the impact of the HST.
McGuinty is banking on taxpayer (voter) support to pay more in taxes to create more jobs and a better future. Don't count on it.
But there comes a point where shifting taxes from business to taxpayers is not just a burden, but also unfair and a mug's game as the money paid in taxes is taken out of the economy. The shift reduces discretionary spending, especially in the service sector, and costs jobs for the low-income workers who dominate that sector.
McGuinty clearly believes he's doing the right thing and, if the public disagrees, they'll let him know at the polls.
Again, he's right. The pressure's building. Don't be surprised if voters let of a little steam.