Monday, August 17, 2009

Which Goods Will Cost More Under New HST Tax?

On April 14, 2009, I challenged the top management over at the Windsor Star to do a better job covering important issues, especially in the areas of finance and business. As a matter of fact, I strongly suggested more information was needed about the new Harmonized Sales Tax (HST). Read my post.

I am sorry to say, other than one or two editorials (written by John Coleman?), I have not seen much about the HST on the pages on our daily paper. Oh, I forgot. Top honcho Jim Venney and assistant top honcho Marty Beneteau have been busy with the CUPE strike. And business writer and super snooper Grace Macaluso has been busy attacking the pay and perks of the new General Motors Board of Directors.

Like other Windsor-Essex residents, I have to search elsewhere to get the information we need.

Below are some paragraphs from a Toronto Star online article of August, 15 2009, written by Steve Lambert of the Canadian Press.

  • The Canadian Taxpayers Federation is calling on Ontario and British Columbia to release a full list of goods that will cost more when the two provinces enact a harmonized tax next July.
  • Ontario has given reporters a partial list of goods that will cost more under the HST. Heating fuel, electricity, gasoline, tobacco, taxi fares, lawyers' fees, haircuts and other items will be taxed at 13 per cent instead of five. But the opposition has been pulling out other examples, such as funerals and maintenance work on condominiums, almost daily.
  • Rather than providing a website or other location listing all goods that will increase, Ontario is suggesting that people call the department's general line with questions.
  • "The Ministry of Finance ... has an information line that people are free to call, and are encouraged to, because these are significant tax changes and we are happy to take people through them," said Alicia Johnston, a spokesperson for Ontario Finance Minister Dwight Duncan
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The proposed tax, which will merge the PST and GST into a flat 13% rate, is set to be introduced on July 1, 2010. So the Windsor Star still has a chance to do a real, in-depth story, laying out pros and cons of this tax, and letting consumers know what goods will be more expensive.

I have three big questions. Has an analysis been done on how many jobs will be lost (or not) because of this new tax? How much if anything will this tax cost our health care system? And how much will this tax cost our education system?