My column last month focused on the Dalton McGuinty Liberals’ new Harmonized Sales Tax, or HST. That new tax came into effect on Canada Day and affects goods and services – including many essentials like our fuel and hydro bills – which were not previously subject to provincial sales tax.
For most families, the HST will mean a big hit on our household budgets. It is another tax hike from a government addicted to tax hikes. We have no choice but to pay it.
Will voters punish the McGuinty Liberals for the latest in a long string of broken promises on taxes? That remains to be seen, most likely 15 months away, when the next provincial election is scheduled to take place.
But many of you have asked me what a Progressive Conservative government, led by Tim Hudak, would do in response to the HST.
If Dalton McGuinty has taught us anything, it’s that politicians shouldn’t make promises they may not be able to keep. Unfortunately, the Liberals made a deal on the HST that will be exceedingly costly to undo. If Ontario were to reverse course on the HST, Ontario taxpayers would be on the hook for a penalty of $4.3-billion.
That same deal would also appear to compel the next government to lock in the HST at its current 13% rate until at least 2012. Moreover, we’re told that even a one-per cent cut to the HST could cost the treasury some $2.7-billion.
That’s why we are now looking at every possible alternative – including not just the HST but to other taxes as well – to bring tax relief to Ontario families.
Sustained tax relief is only possible when the economy is growing and overall spending is constrained over time. Since it took office in 2003, the Liberal government has raised its total spending to levels far beyond what we can afford.
If we pursue a new course and government begins to live within its means again, we can hope for a day when the tax burden will be reduced. If you have an opinion as to which taxes should be reduced first – the ones that most affect your budget – I would be pleased to hear from you.
More information on the drawbacks of the HST is available online, at www.daltonsalestax.com.
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I want to wish you and your family a safe and fabulous summer.
Wellington-Halton Hills MPP Ted Arnott welcomes comments. He can be reached at 1-800-265-2366. His website is www.tedarnottmpp.com.