Harmonized Tax in Ontario
April 7, 2009
HST in Ontario - UGH!
So, we all know that effective July 1, 2010, we will have a new tax system in Ontario - “Harmonized Tax”, and there isn’t really anything harmonious about it. I used to be one of those proud Ontarians who would pity other people from other provinces (mainly Maritimers) who have HST in place. Now word on the street is other provinces will likely follow suit.
Gas Prices will cost more with HST
What makes me laugh is how McGuinty is going to mail out cheques to help with this new HST implementation. Wow, gee thanks Dalton, that’ll really help us recoup the costs of paying more taxes over the many years to come.
For those who are worried about paying a chunk of tax change when purchasing a home, well, fear not, because on resale homes, taxes are usually “included in” the purchase price. What’s going to hurt is when you purchase a new home. Developers are going to have to be more creative as paying 13% tax (rebate or no rebate) is going to be a turn off for many. Plus, there’s the added cost upon closing: legal fees, real estate commissions, inspections, moving expenses and so on.
What’s also tough is the cost of paying higher taxes on basic goods such as diapers, shoes and children’s vitamins. What about small retail businesses that will lose customers as consumers will look to discount stores in order to save?
It’s interesting to see that the last couple of cheques some families will receive will line up nicely with the next election. Coincidence? Yeah, right.
