Subject: Fw: Ontario 's New 13% Harmonized Sales Tax - What It Will Mean To You
Next summer (2010) the Ontario Government is set to put into force its
new harmonized GST/PST sales tax which will apply a 13% sales tax to
everything we purchase.
Things That Were Not Subject To The Current 8% PST Will Be Now Taxed
As a result, things that were not previously taxed under the current Ontario
Provincial Sales Tax (PST) will be taxed at 8%.
The new 13% tax will therefore apply to things like your electric bill, your
gas bill, your water bill, condominium fees, insurance premiums, and every
other good and service you purchase. There are almost no exemptions.
The current Ontario PST tax does not apply to services, nor does it apply to
the purchase of certain goods. The new 13% tax will therefore extend the old
8% PST tax rate to the purchase of all goods and all services.
The New 13% Tax Will Apply To The Purchase of All New Homes
The new harmonized GST/PST will also apply to all purchases of all new homes.
If a person were to purchase a new $1 million dollar home in Toronto , they
would have to pay roughly $200,000 in taxes as a result of the Ontario land
transfer tax, the new city of Toronto land transfer tax, and the new
harmonized 13% GST/PST.
Think about that and what that would do to real estate values in Toronto ..
It will cause property values to fall and kill the new home construction
industry and the jobs it creates.
And it won't be long before you'll hear our elected representatives telling us
that, because of the harm that has been inflicted to the new home
construction industry by the new 13% tax, it would be "fair" to extend the new
13% tax to sales of existing homes.
The New 13% Tax Is An Assault On Your Primary Residence
Canadians have had two things that they have always been able to count on as
being tax free - things that they could use to save money and accumulate
wealth. They are your: (a) primary home; and (b) RRSP. That's it.
The extension of the new 13% GST/PST to homes is simply a tax assault by the
government on your primary home. They want to tax your primary home and you
will suffer because of it.
Why? Because if a purchaser has to pay almost $200,000 in taxes to buy your
$1 million dollar home, the purchaser is going to pay less to you for your
home. The purchaser will reduce the amount he or she is willing to pay to you
in order to pay all the taxes.
The New 13% Tax Will Effectively Raise Your Income Taxes
Currently, the combined Federal/Ontario income tax rates are roughly 25% on
the first $20,000 of taxable income, 42% on the next $40,000 of taxable
income, and 46.5% on each dollar of taxable income over $60,000. On top of
that you have to add the "Fair Share Health Tax" of up to $1,000 each of us
has to pay.
If the Ontario Government gets away with implementing their new harmonized
GST/PST sales tax of 13%, the top effective income tax rates in Ontario will
be as follows (since you can't spend any of your tax paid dollars without
paying the new harmonized 13% GST/PST tax):
38% on the first $20,000
53% on the next $40,000
59.5% on every dollar over $60,000
On top of that, you have to pay your Ontario Fair Share Health Tax, your city
realty taxes, your city garbage fees, your city water fees, your city street
parking permit fees, your annual Ontario and new city of Toronto vehicle
license plate fees, your Ontario land transfer tax, your new city of Toronto
land transfer tax, your gasoline taxes, your liquor taxes, your air departure
taxes, your entertainment taxes, and so on.
OF ALL THE MONEY YOU WORKED HARD TO EARN, WHAT PERCENTAGE ARE YOU REALLY
KEEPING FOR YOUR OWN USE? 25%? 20%? 10%?
ENOUGH IS ENOUGH - FIGHT BACK
THIS HAS GOT TO STOP HERE OR WE WILL ALL SOON BE WORKING FULL TIME FOR THE
VARIOUS LEVELS OF GOVERNMENT IN ONTARIO .
YOU CAN ALREADY SEE HOW ARE LIFESTYLES ARE DECLINING BECAUSE OF THE ENORMOUS
TAX LOAD WE BEAR.
AS A RESULT, I URGE YOU TO TAKE THIS ISSUE SERIOUSLY AND TO FILL AND AND SIGN
THE PETITION AT
www.unfairtaxgrab.com AGAINST THE NEW HARMONIZED GST/PST
TAX SET OUT BELOW...
I WOULD ALSO ASK YOU TO SEND THIS E-MAIL ON TO OTHERS THAT YOU KNOW AND ASK
THEM TO DO THE SAME.
IF WE DON'T WORK TOGETHER ON THIS ISSUE THE NEW HARMONIZED 13% SALES TAX WILL
BECOME A REALITY NEXT SUMMER.
THANK YOU.
To sign a petition go to
www.unfairtaxgrab.com
Thousands say "no" to the HST
Dalton McGuinty claims "no one is complaining" about his unfair tax grab. You
proved him wrong this week. On Wednesday we sent out a request asking you to
send a message to the McGuinty Government about the HST. Almost instantly our
email box began to fill. By the end of the day we'd received nearly 2,000
messages.
New Democrat Members of Provincial Parliament did their best to read them
into the record in the Legislature, but they simply ran out of time. The good
news is: there are more debates to come and we'll be sending you details about
how to keep up the fight against this unfair tax grab. In the meantime, you
can read a transcript of the debate here .
Together we can stop the HST.
PS - Urge your friends, family and other concerned citizens to sign the
petition at
www.unfairtaxgrab.com . Join the Face book fight back here .