Why we need to petition - Our MPP's take on HST
The following is the response received by a neighbour of ours in regards to the proposed HST from our area representative at Queens Park. A request has been made to MPP Gerry Phillips' office enquiring if he would table a petition in the Legislature for his constituents in this matter. We were advised that as a Cabinet Minister it is a conflict. However, he would pass it along to one of his fellow Scarborough colleagues to submit on our/his behalf. A health petition usually has a minimum of 4 figures, so anything over a thousand would be good. There are about 30 condominium corporations in municipal Ward 39 so it shouldn't be too difficult to get a stack of names done in accordance with the appropriate protocol outlined at www.ontla.on.ca .
Queens Park resumes September 14, 2009.
Dear 'Name Removed',
Thank you for your e-mail regarding the government's recently announced changes to the sales tax system. I appreciate hearing from you on this matter.
In the 2009 Ontario Budget, the government announced a proposed comprehensive tax reform package that includes moving to a single, value-added sales tax, effective July 1, 2010; as well as $10.6 billion in temporary and permanent tax relief for people over three years and $4.5 billion in proposed tax relief for businesses over three years.
In these difficult economic times, modernizing Ontario’s tax system, including replacing the outdated RST with a single value-added sales tax, is the single most important thing the government can do to strengthen our economy and make Ontario more competitive. By creating jobs, boosting incomes, and spurring economic growth, a smarter tax system would benefit all Ontarians.
One of the key reasons the government is proposing this tax package is to encourage investment in Ontario. Ontario’s current tax structure imposes too high a burden on business investment. Taken together, the tax changes proposed in the budget would cut Ontario’s marginal effective tax rate on new business investment by more than half. What this means is that businesses -- whether large or small, whether they are new to the province or run existing operations -- would be able to make new investments and enjoy one of the most competitive tax rates in the industrialized world. New investment means a strong economy and job creation.
The business tax relief measures would also include a reduction in the corporate income tax (CIT) rate to 10 per cent and the small business CIT rate to 4.5 per cent, which would further help strengthen Ontario’s business competitiveness.The $4.5 billion in proposed tax relief for business over three years would lower business costs, enhance Ontario’s competitiveness and support growing small business. Furthermore, replacing two taxes with a single, value-added sales tax in Ontario would save businesses $500 million a year in administrative costs alone, giving them the opportunity to reduce prices, invest in their businesses and create jobs.
Under the current RST system, sales tax applies to many purchases made by businesses in the course of their commercial activities. Ultimately, for many goods and services, that additional cost is transferred to consumers in the form of higher prices. Under the proposed single sales tax, most businesses would be reimbursed for the sales tax they pay on many of their business purchases. Studies show that businesses do pass these cost-savings on to consumers in the form of lower prices.
I have noted your concerns regarding the impact of the proposed single sales tax on consumers. In the 2009 Budget, the government took a number of significant steps to address that impact. One measure we have already taken to address such concerns is to create exemptions for the provincial portion of the tax. Books, children’s clothing and footwear, children’s car seats and car booster seats, diapers and feminine hygiene products would all be exempted.
Another key element of Ontario’s tax package is the proposed broad-based personal income tax cut. The first tax bracket would be cut by one percentage point, from 6.05 per cent to 5.05 per cent, effective January 1, 2010 — 93 per cent of Ontario taxpayers would pay less personal income tax.
The government has proposed further support for Ontarians during the transition to the single sales tax until cost savings are realized. In partnership with the federal government, Ontario is proposing $4 billion in temporary payments starting in July, 2010: Eligible tax filers aged 18 and over would be eligible for a maximum of $300 for single people and $1,000 for single parents and couples.
There are other proposed measures to put more money into the pockets of low- and middle-income families in the form of sales tax and other credits. The tax relief for individuals proposed in the Budget means that the majority of Ontarians will end up financially further ahead as a result of our comprehensive tax package.
Finally, the comprehensive tax package proposed in the 2009 Ontario Budget, including the single sales tax, will help make Ontario more competitive, create jobs and position the economy for future growth. I firmly believe that these developments will benefit all Ontarians.
Thank you again for writing.
Sincerely, Gerry Phillips, M.P.P.
Scarborough-Agincourt
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