Ontarians need to organize

Ontario Premier Dalton McGuinty is gung ho to bring in the Harmonized Sales Tax (HST) next year. The effect of the new tax will be an increase to consumers of 8 per cent on all services and those goods that are currently exempt from the provincial sales tax. Beginning in July 2010, Ontario residents will pay an additional 8 per cent on services such as dental work, veterinarian care, accounting, and all labour costs associated with such things as car repairs and home renovations.

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And if you think you can avoid this by dying, think again; the cost of funerals will automatically increase by 8 per cent. Goods that are currently exempt from PST such as books, newspapers, children’s clothing and a double double from Timmy’s will also see a corresponding price increase. McGuinty knows it’s a hard sell but he’s determined to bring it in and he spent time this week selling it to his caucus. After all Dalton has been pushed into doing it by federal Finance Minister Jim Flaherty and the federal Tories. McGuinty agreed to it because he thinks Harper and his government is doing such a wonderful job governing the country; much better than that Iggy guy could do. It’s either this or Dalton was bought off for $4.3 million. Liberal MPPs will now be out doing the hard sell with their constituents, not because they believe that the HST is good because they fear what elected politicians fear the most; the loss of power. The party line will no doubt be along the lines expressed by Education Minister Kathleen Wynne who was quoted as saying, “They (Ontarians) haven’t got the whole picture.” In other words the unwashed masses are just too stupid to know what is good for them. The McGuintyites will be promising that the HST will be revenue neutral; that income tax rates will be lowered. Governments always use this line but it’s very rarely true. And even if it is, the few less dollars a week that will be deducted from people’s paychecks will hardly be noticeable when they are facing a huge dental or car repair bill. The government is also promising to send everyone a $1,000 check to cover the increased cost. That may sound like a lot but it will easily be wiped out by an unexpected large expense or the purchase of a big ticket item. There are advantages to harmonizing the federal and provincial sales tax. Retail businesses will have less expense as they will have to account and remit one tax instead of two. In a perfect world these savings would be passed on to consumers but in case anyone hasn’t noticed the world is far from perfect. As well, the sales tax will become a true value added tax with the HST, like the GST being passed down the line to the ultimate consumer. If this were a time like the booming 1990s it wouldn’t be so bad; but we are in a recession and while it appears that Canada is coming out of it, we can’t expect to see a great economy by the middle of next year. People are afraid of losing their jobs and their savings. To bring this tax in now could be disastrous. There is a lot of similarity between what McGuinty is doing and Barack Obama’s insistence that his healthcare plan be made into law regardless of the cost or the effect on ordinary people. Both programs are being implemented for ideological reasons and for power with little regard to the wellbeing of the voters or what they actually want. All that is needed to prevent the HST from being implemented is for Ontarians to rise up in much the same way as Americans did to Obamacare. Americans made it clear, through the holding of tea parties and other actions that they were opposed to the actions of the president and the Democratic congress. Now it appears that the elected lawmakers are backing down from the public option aspect of healthcare reform because they are worried about their reelection chances. Ontarians need to take the same sort of actions that Americans have taken. A good way to begin is for people in and around Toronto to work for the Tory or NDP candidate in the campaign for the September 17 by-election in the riding of St. Paul’s. Both Ontario opposition parties are opposed to the HST. Make those sitting Liberal MPPs squirm. It’s the only way. Ontarians need to organize if there is any hope of stopping the large tax increases that are about to be brought in; either organize or pull out your wallet.

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