The HST Blog : Canada Harmonized Sales Tax Lawyer Cyndee Todgham Cherniak for Assessments, PST & RST Issues in Ontario, British Columbia & Quebec

Question:

Mr. Tim Hudak: Quite frankly, Minister, the only thing Dalton McGuinty has been strategic about is more inventive ways to take money out of the pockets of Ontario families and seniors. Let's look at some of the examples since Dalton McGuinty famously broke his promise to Ontario voters. He helped David Miller raise taxes for property taxes, vehicle registrations, property transfers, garbage collection and even plastic bags at the grocery store. Then Dalton McGuinty himself increased personal, corporate and small business taxes across the province; seniors' property taxes; taxes and fees for eye exams, visits to the chiropractor or physiotherapist; and even fees for students and on their athletic and extended health plan fees.
Minister, wasn't it just a shameless use of the Canadian Taxpayers Federation?

Answer:

Hon. Dwight Duncan: The electorate of Ontario cast their judgement in 2007 on that issue.
What I will say is this: It is complete fiction, what the member has just said. This year, as of January 1, Ontario has the lowest tax rate in the country for the first $37,000 of income, which he voted against. We will have the lowest marginal effective tax rate on new businesses in North America; that member and his party voted against it. We created then doubled the seniors' property tax credit; that member and his party voted against it.
That member's expert said that our policy will create 600,000 net new jobs in the next 10 years. That's what it's about: a brighter future for our children and our grandchildren.

Question:

Mr. Tim Hudak: During the 2007 campaign the minister talks about, Dalton McGuinty was asked if he was going to increase taxes. Dalton McGuinty said no, the critics-"They're wrong, they're wrong, they're wrong." But Ontario families knew better than to believe Dalton McGuinty when it came to his plan on taxes, and they were right.
Let's see what he's raised since the 2007 election: taxes on hydro, desktop and laptop computers, printers, television sets, BlackBerrys, iPods, digital cameras, telephones, DVD players, tires, commercial vehicle operator registrations, camping, destination marketing fees and more-now, Canada Day, your greedy HST tax grab.
Minister, isn't enough enough? Which of these items will you lower taxes on and actually give Ontario families a break?

Answer:

Hon. Dwight Duncan: That question is pure fiction. Let me tell the member opposite, 93% of Ontarians are getting a tax cut this year. He and his caucus voted against it.
Why isn't he so passionate about the cost of generic drugs? They're against that and for big pharmacy. Why did they vote against the seniors' property tax credit?
Premier McGuinty has set in place a policy that will create jobs, will create investment and will create a better future for our children. That member and his party want to go back to the days of Mike Harris, when you fire nurses, when you don't train enough doctors, when you undermine our schools and close hospitals. That is the wrong direction. This government, with the support of his federal cousins, is moving forward on an aggressive tax package to make our economy more competitive and better for-

Question

Mr. Tim Hudak: Back to the Acting Premier: Let me tell you, Ontario PCs stand against his cuts to front-line pharmacy care, as we stand against his increases, his excessive greedy tax grabs.
On Canada Day, Dalton McGuinty is bringing his HST tax grab on everything. Dalton McGuinty is adding taxes to haircuts; cable bills; Internet bills; magazine subscriptions; vitamins; dry cleaning; ice rentals; ballet lessons; karate, judo and boxing classes; hockey school; and memberships to the YMCA, Curves and fitness clubs.
Minister, I've got to ask you, isn't this extraordinarily greedy, even for Dalton McGuinty's standards? When will you stand up and lower taxes on items so Ontario families can make things meet in Dalton McGuinty's Ontario?

Answer:

Hon. Dwight Duncan: In his typical-and I wish to respect you, Mr. Speaker; I don't want to be unparliamentary-disingenuous fashion, he has neglected to tell everybody-

I withdraw that. I'm trying to find a word. In a typical less-than-clear way, the Leader of the Opposition has refused to acknowledge the largest tax cut in the history of this province to individuals and corporations. He failed to acknowledge the largest sales tax credit in Canada. He failed to acknowledge a range of other tax credits-which he voted against-that will help seniors, help the lowest and most modest.
Now we hear it unequivocally: They're for Big Pharma. They're for higher generic drug prices. They're for paying more. They're for making sure seniors pay the highest generic drug prices in Canada.
Our plan is the right plan for jobs, for growth, for our children and our grandchildren. It's the right plan for Ontario's future.
 

Question:

Mr. Tim Hudak: Dalton McGuinty's attack on the pocketbooks of Ontario families has no end. On Canada Day, Ontario families will face higher taxes to fix a leaky faucet or a bathtub, to improve electrical wiring, to repair a broken furnace or water heater, or help with snow removal, lawn care, gardening or house painting. Now we see the government contemplating taxes on water bills and a second stage of the health tax.
How big is your appetite? How far does Dalton McGuinty's greed grow? What in the world aren't you going to tax since you're taxing everything under the sun beginning July 1 in the province of Ontario?

Answer:
Hon. Dwight Duncan: Mr. Speaker, 83% of what the typical Ontario consumer spends will not be affected by our changes. The member opposite insists on neglecting the other side of the story. I look at his colleagues sitting next to him-

Let me read to him what a fellow named John Tory had to say. He said about our tax policy, "It was a courageous and the right thing to do. It's being done right in Ontario as we speak, and it is, in many respects, a right thing to do for investment and job creation." That's John Tory. His federal counterparts have made this all possible because they recognize that, overall, it's a tax cut for Ontario families and businesses.
The people of Ontario will see through that argument. They recognize that this change is the right change for jobs, investment and higher family incomes. That's why we're pursuing it: for a better future for our children and our grandchildren.
 

Question:
Mr. Tim Hudak: I still can't believe the finance minister is spinning this tale that his HST tax grab is a tax cut for Ontario families. Even your Premier was finally forced to admit that it's a tax grab-

The minister in Wonderland says it's a tax cut to put the HST on air travel, on train tickets, on boat and bus trips and on the gas they will use to get to their destination. When they get there, Dalton McGuinty is waiting with the tax machine as they arrive-agricultural fairs, Shaw and Stratford Festivals, comedy clubs, plays, galleries, summer music festivals and increased taxes on accommodations when they want to lay their head down at night.
Minister, what will Dalton McGuinty do to help people in Niagara, Prince Edward county, Stratford and the communities around Algonquin park when people can't travel this summer because of your greedy HST tax grab that will take money out of their pockets
 

Answer:
Hon. Dwight Duncan: That's why we created the tax cuts and tax credits for all Ontarians. That means 93% of us will pay less in-  

Let me read on about something his former leader John Tory said: "I think [Hudak] has not acknowledged something that pretty well everybody else has. A lot of people call and say it is going to help with productivity and job creation and investment and the cost of capital. So I felt dishonest if I came out and said I was ... against it because that benefit is significant."
John Tory has the courage of his convictions. John Tory has said what he would do. That member and his party and that caucus will not say what they'll do with the HST.
We're moving forward. It's right for jobs, it's right for investment, it's right for income. I only wish that-
 

Question:

Ms. Lisa MacLeod: My question is for the Acting Premier. The Canadian Taxpayers Federation broke it to Ontario families that Dalton McGuinty's HST will add between $250 and $400 a year more to the cost of gas and to fuel. For months, the McGuinty Liberals, they dodged, they ducked and they hid what they knew about the impact that Dalton McGuinty's 8% HST tax grab-

Was it because you planned to bury the HST in the price of gas at the pump so nobody would notice your greedy HST tax grab?

Answer:

Hon. Dwight Duncan: A range of Conservative experts have told us that the HST will create jobs. Let me tell you the start with Jack Mintz: "Within 10 years, Ontario will benefit from increased capital investment of $47 billion." We will increase annual worker incomes by $29.4 billion and we will create some 591,000 net new jobs.
I think that's why Jim Flaherty, Cheryl Gallant, Tony Clement, John Baird, even-here's what Tim Hudak said in March 2009. He said, "We understand how that (single sales tax) can help the economy."
Unfortunately, all the bluster in the world can't replace serious, sound policy that will create jobs for our children and grandchildren. It's right for our future.

Question:

Ms. Lisa MacLeod: Let me dumb it down for the minister. It is going to cost Ontario families between $250 to $400 more for gas in their cars once his HST tax grab takes effect. Even Stéphane Dion's carbon tax wasn't going to tax gas. British Columbia's HST doesn't tax gas either. BC made a decision to protect families from paying more for fuel in their vehicles to get them to work and to take their kids to school or to go on family vacation. British Columbia didn't want families to pay more for fresh produce either, or other groceries that would cost more to be trucked to market. You had choices, so why did you choose to make Ontario families pay more for everyday non-discretionary items.

Answer:

Hon. Dwight Duncan: Mr. Speaker, I would actually like to upgrade the debate in the House, as you have called on us to, refer to some facts and try to keep a cool perspective as we move forward.
Here's what another member of the CTF said: "Harmonization has some clear benefits." That's from the director of the Canadian Taxpayers Federation in Saskatchewan.
This tax policy, in fact, will lower taxes for 93% of all Ontarians.
(Laughter - in the Hansard Transcript)
The opposition wants to laugh. They want to ignore the recommendations of their federal counterparts. They want to ignore their own past when they spoke in favour of it. It's no doubt that it's a difficult policy that requires a great deal of work and explanation. We're committed to that because it will create jobs for our kids and our grandchildren. After all, I think that's the most important thing that any government can do.
 

Question:
Mr. Norm Miller: I have a question for the Acting Premier. There are still 31 days left before the McGuinty Liberals unleash the HST tax grab, but they're already plotting the next new tax grab. Dalton McGuinty refused to rule out a tax on tap water. When Jeff Rubin proposed a carbon tax at Dalton McGuinty's summit, his caucus gave rapturous applause. Last week, the transportation minister told the Economic Club of Canada she plans to have a "conversation" about road tolls, and we all know what that means. Dalton McGuinty's economic advisors at TD Economics called for a new health tax.
My question is, which new tax grab does Dalton McGuinty have his eye on implementing first?

Answer:

Hon. Dwight Duncan: I would caution anybody against wild speculation of that nature. The fact of the matter is-

Comment:

Mr. John Yakabuski: There's nothing you guys won't tax. It's unbelievable

Question:

Mr. Norm Miller: I think it would have been wild speculation to think that the Premier would break the signed oath that he made in 2003 not to implement new taxes.
Dalton McGuinty is a tax-and-spend Liberal. He introduced the single largest income tax increase in Ontario history with his so-called health tax in his first budget. He introduced the single largest sales tax increase in Ontario's history, the HST. Ontario families are not even officially paying the HST yet, and he's already salivating over the next new tax grab.
Why are none of the Liberal caucus or cabinet members standing up for middle-class families who Dalton McGuinty keeps taxing and taxing and taxing?

Answer:

Hon. Dwight Duncan: This caucus and government are about jobs; that's why we're pursuing a large tax cut for personal and corporate contributors. We are about 600,000 net new jobs, and we're consistent about that, unlike that member and his party who used to say a harmonized sales tax was the right thing and now say it's not necessarily the wrong thing, because we still don't know why they won't repeal it or undertake to repeal it.
We've set out a policy that will create 600,000 net new jobs, increase family incomes and increase investment. It's the right policy for our children and grandchildren. It will lead to a healthier, stronger economy, even according to their own experts, their former leader and all of their federal cousins.