Ignatieff To Help Ontario With Tax Harmonization
Promises $4 Billion To Aid Implementation
Sep 15, 2009
Premier Dalton McGuinty first introduced tax harmonization prior to February’s provincial budget. It would see the 8% Provincial Sales Tax (PST) combined with the federal 5% Goods and Service tax (GST), implemented in July of next year. He has faced opposition from within his own party, as well as the Progressive Conservatives (PC’s), and New Democratic Party (NDP).
Ignatieff Guarantee’s McGuinty $4 Billon Aid If Elected
Word of the guaranteed funds came from Ontario Premier Dalton McGuinty. McGuinty revealed there have been discussions underway about supporting the province through the policy’s implementation. In an article published by the Ottawa Citizen he commented that it was conditional upon Ignatieff winning the election: “We have secured Mr. Ignatieff’s commitments to moving ahead with the single sales tax should he earn the privilege of serving Canadians in government.” Media reports say a similar agreement will be in place to help British Columbia implement their sales tax.
Ignatieff's Liberals have withdrawn its support of the Harper minority government, and will try to force an election at the earliest opportunity. That opportunity may come by September 18, 2009 on a budget implementation bill containing the home renovation/repair tax credit, and measures to help first-time homebuyers. The Harper government has already promised $4.3 billion in aid to Ontario.
Provincial Opposition Goal: Stopping Harmonized Sales Tax
In Ontario, the opposition’s goal for the new legislative session is stopping the harmonized sales tax. Harmonizing sales taxes has long been a Conservative position; federal governments have been trying to get Ontario to do this for sometime. A possible federal election could place Progressive Conservative Leader Tim Hudak in an awkward position, because he opposes his federal counterparts. In remarks published by the Canadian Press he acknowledged the disagreement, saying he was on the side of Ontario families, and small business: “But we’re on the side of Ontario families and businesses who see it for what it is: a calculated tax grab.”
In rare agreement, the New Democratic Party (NDP) sides with the Conservatives. In comments published in the same article, NDP leader Andrea Horwath repeated her opinion that the tax was wrong: “This is the wrong tax, and the wrong time. And New Democrats are uniquely in lock-step federally, and provincially in terms of our opposition to this tax.” The harmonized sales tax (HST) would see Ontarians pay sales taxes on more items than they do already, increasing taxes on everything from: fast food to haircuts.
Ontario will become the fifth province to harmonize their sales taxes. The others are: Quebec, Nova Scotia, Newfoundland, and New Brunswick. The Nova Scotia government was voted out office after enacting the HST.
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