The 'bait and switch' of harmonized taxes

Missed opportunities abound in this year's budget.

Despite hundreds of names on petitions, letters to the Finance Minister,
requests from auto dealers and news conferences, we failed to convince
Mr. McGuinty to allow a sales tax holiday on new vehicles sales. By
lending a hand to struggling auto dealers, this economic stimulus could
have boosted the parts industry, auto assembly and steel production.

A sales tax holiday was not the only omission - a quick glance at the
budget reveals no news for farming, forestry, mining, manufacturing,
steel or those who have been kicked to the unemployment line. In his
budget speech, the Finance Minister crowed about corporate tax cuts;
however, this budget contains nothing. The corporate cuts mentioned in
the budget speech do not take effect until July 1, 2010. So, we will
hear them re-announced in the budget next year.

Mr. McGuinty has also secured his place in the record books, by creating
the largest deficit in the Ontario's history -- $14.1 billion, with
another seven years of deficits projected. Since elected, the present
government has doubled the debt.

Most discussed is the introduction of a Harmonized Sales Tax (HST). It
appears the McGuinty government has enacted the old 'bait and switch' to
divert taxpayers' attention from the real issue - our tanking economy.
The mainstream media is focusing on the HST, so it would seem this
communications strategy has been successful.

While this so-called economic measure is meant to alleviate strain on
businesses, I can say the bulk of the complaints to my office to date
are from business owners. They understand that the harmonized tax may
spook consumers to postpone purchases, in particular, big-ticket items,
or not purchase at all.

Plain and simple, we have another tax grab that will pinch the wallet of
everyone every time they buy something. And don't forget, we are all
still paying upwards of $900 a year for the so-called health tax.

In an attempt to soften the blow of the harmonized tax, Mr. McGuinty has
pledged to forward - in three payments - $1,000 to households who earn
less than $160,000 annually. This is sugar chasing poison - taking money
from one hand and putting some of it in the other. Ironically, the third
and final cheque will go out just before the next provincial election in
2011. After that - we're on our own to continue paying the additional
eight per cent tax, with no more handouts.

Why would Mr. McGuinty choose to shift the tax burden from businesses to
consumers, at a time when people are losing their jobs? What Ontario
businesses and consumers need at this time are tax cuts -- not hikes.

According to the Building Industry and Land Development Association, the
harmonization of taxes will add nearly $47,000 to the price of a new
home in the Greater Toronto Area, and about $23,000 to a home in
Haldimand-Norfolk and the rest of the province.

Also, we will pay more every time we fill up our tank - eight per cent.
We will pay more for home heating fuel. We will pay more for cable,
internet and cell phone service. We will pay more if we need a lawyer
to close a home purchase or sale.

This budget has officially confirmed Ontario's continued course of
enhanced taxing and spending and borrowing.

THE PC PARTY PLAN FOR ONTARIO'S FUTURE

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