I tend to keep my political opinions to myself. Most of the time I save my political rants for Beanz and Millhouse but this time I can’t. So if you don’t like politics then this post isn’t for you. But if you live in Ontario and you have kids, maybe you should read this.
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The provincial government announced that they intend to merge the PST with the GST tomorrow during their provincial budget. The Premier has admitted that this decision is based on the urgings of business owners. Big business has stated that this is an attempt at stimulating the economy. Businesses say that a harmonized tax would allow them to get a refund for the provincial portion of the tax that they pay on equipment and materials used to make their products, thereby reducing production costs. Also, a merged tax would also cut down on the time business spends calculating sales tax. Thereby, making them more competitive and furthermore stimulating spending.
Now I see some serious holes in that logic but that is not what concerns me, right now.
Right now I see a harmonized tax as detrimental to families and those that are already struggling in this recession. There are many items that are PST exempt, thereby making them more affordable that family’s purchase. I am not talking about luxury items, I talking about diapers, clothing and food. With a harmonized tax the cost of these things will increase. There is no possibility of an increase, they will go up. There will be a $1.76 increase for diapers, $1.04 increase for girls’ shoes, and a 72-cent increase for children’s vitamins. Even though these numbers seem small they are not. If you have one or more children in diapers your cost of living has just gone up. If you have one or more child that wears clothes your cost of living has just gone up. If you have one or more child that eats your cost of living has just gone up. For a family that is struggling as is with the cost of housing, transportation, childcare and healthcare increasing the cost of living for them is only crippling them more.
I am extremely disappointed with the Liberal government. During this time when people are barely making enough to get by, they have chosen to attack families, single parents, those living below or on the poverty line further. I am hoping that the opposition steps up and stops this from going through but given the track record of the PC and the practical nonexistence of the NDP I see harmonized sales tax as being passed. And a lot of people suffering because of it.