Hi Everyone
You must have heard that Canada is going to implement harmonized taxes in 2010. Hence, consumers will be required to pay a combined GST and PST of 13% on everything from coffee and muffin to gasoline and heating fuel to funerals and new homes. According to Ontario Premier Dalton McGuinty, there is an emerging consensus around tax harmonization. This is supposed to stimulate the economy by lowering the cost of small businesses and by putting more money in the hands of lower-wage earners. McGuinty thinks that in the long term, harmonized sales tax will increase jobs by providing a more competitive edge to small businesses.
However, critics of this plan believe that the consumers will be bearing most of the burden of these taxes. They say that the tax refund benefit to the individual or family is going to be minuscule in comparison to the amount that will be annually gouged out of the consumers. And according to this particular article, more jobs will be jeapordized.
Our concern is for jobs. The residential construction industry is a key component to economic recovery. Most inputs, materials and labour are locally supplied and produced. Every house built and every renovation done provides jobs, real incomes that support real families — your neighbours, your relatives, your customer, etc. Those families use that income to buy groceries, pay mortgages, buy housewares, clothes, frequent restaurants, buy cars, travel and so on.
The higher the price of a house, the fewer homes that are sold, the fewer people who are employed. The rationale is the same for renovations — the higher the cost of a renovation, the higher the probability that people will choose not to renovate, the fewer people who are employed.
It’s just that simple.
According to this particular news article published in Toronto Star, around 48% of the Canadians see the harmonized taxes as a very negative move by the government.
In my opinion, it is a very negative move given that that thousands and thousands of jobs have been lost due to recession. People nowadays are struggling to live cheque by cheque and a lot of people are holding two to three jobs at a time. What about those Canadians who are currently unemployed and looking for a job? Wouldn’t these harmonized taxes ensure that their hard-earned savings are eventually depleted? I feel it is unfair to increase taxes during this tough economic period. Government has to find another way of boosting the economy which should not involve taking away hard-earned money of Canadians.
I have located some online petitions which address this critical issue. Kindly sign the petitions today and say NO to harmonized taxes. Make sure to spread the word and get more people to sign the petition.
