Since the idea was crapped out of Parliament Hill and Queen's Park that Ontario needs to harmonize their taxes, I've read some very funny and suspicious reasons for it.
Our MPP, Jeff Leal, recently addressed the Lion's Club and called the current setup a "Hidden Tax," a "tax on a tax." I've also heard it being called a dumb tax among other things.We're to believe it's smarter to combine them into one. Eh?
Pardon my ignorance, since I'm not an economist, but if the PST, a tax that is blatantly added to things as its own line on your receipt, (go ahead, grab one. You'll see GST 5%, PST 8%. I'll wait...Back? Ok), it's not hidden. It is a tax on a tax, but you can argue the same in reverse about the GST, since it came later, and replaced a real hidden tax/ So now, we're combining the two into one. Ok. This changes things how? It adds more tax to gasoline (geez, there's a tax on a tax issue if you cared,) among other goods and services. So they're lowering personal taxes and giving out one year's worth of "tax relief" money as a result but the tax is around for longer than one year. I've heard the PST be called a dumb tax. Well, yes. A dumb tax that's been paid for....how long? I'm 31 and remember it being around forever. However, taking one dumb tax, combining it with another dumb tax to make a giant dumb tax does not make the tax smart.
Now, the main bone of contention for me is the following: the HST will create 600,000 jobs. How? As I see it, the people who work in PST collections are out of jobs, thereby putting you in the negative to start. I haven't heard how it's supposed to suddenly stop industry from going to areas where the pay is slightly above sweatshop. I haven't heard how companies are suddenly going to invest in a province who's let forestry and mining go down the tubes. So, the only thing I have to say here is: "Dalton, you got some 'splainin to do!"
I would also like to point out another wonderful benefit, as pointed out by the head of Ontario Credit Unions, the HST will allow for lower costs, allowing business/retailers to lower prices. BWAAA HAAAA HAAAA *slaps knee, falls out of chair, rolls around laughing for 10 minutes* Ugh. Sorry. Naivety coupled with stupidity always makes me laugh.
So, companies get lower prices on the goods they sell. Where do you think the money is going to go? Is it going to lower our prices, or is it going to line the shareholders' pockets? I'll give you three guesses what I think.
So there you have it. The only thing I am happy about is this isn't my Birthday Present, even if it is a cruel April Fool's Day joke. Enjoy Canada Day! Pay out the anal crevice afterwards!
