Happy Sales Tax to you! HST is now the law both Federally and Provincially

You have to love the politics ot tax problems. HST is now the tax we love to hate.
For me, it is the tax I love.

Why does Dan like HST.
1. Only one tax collector to deal with.
2. One entire Tax Act to not deal with.
3. Much easier to understand.
4. Much easier to track.
5. As a business we get our HST back in the form of tax credits. This is a big improvement over PST.
6. Our new audit ready bookkeeping keeps perfect track of the GST/PST transition to HST…. I love easy.
7. It puts more money into circulation for the consumer to get their hands on.

Yes it is normal to resist change, but when it comes to resisting HST. It goes like this….there is no point in peeing into the wind. All you get is a wet face. You need to pee and the wind needs to blow. It is an ill wind that blows no good. So if you weigh the good and the bad, you will see that the HST is more better than it is badder.

So if you want any help with your tax problem transition to HST, give us a call at 1-905-668-4816 for your tax solutions or visit our site and read the article on audit ready bookkeeping. www.taxauditsolutions.ca

HST   is …
Happy Sales Tax to you!

Dan White

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Harmonized Sales Tax becomes law in Ontario
Posted Dec 24, 2009 By Rosalyn Stevens

Liberal MPP Yasir Naqvi has been travelling the province talking up the benefits of the HST, in his role as the parliamentary secretary to the Revenue Minister.
Desmond Devoy, Ottawa East EMC
Liberal MPP Yasir Naqvi has been travelling the province talking up the benefits of the HST, in his role as the parliamentary secretary to the Revenue Minister.

EMC News – On July 1, 2010, Ontario residents will wake up to a reformed tax system designed to boost the economy and create jobs, while offering tax cuts to the province’s most vulnerable, according to Ottawa Centre MPP Yasir Naqvi. The controversial Harmonized Sales Tax (HST) bill passed into law on Dec. 9 at the provincial legislature, despite strong opposition by the Progressive Conservative (PC) opposition.

Mr. Naqvi, the Parliamentary Assistant to the Minister of Revenue, said the reorganized tax-blending the 8% provincial sales tax and 5% federal goods and service tax into a single 13% levy would give the manufacturing sector a much needed boost by eliminating the multiple taxation levels currently in place. As well, he said, income tax cuts and permanent sales tax credits would assist low-income residents and families in a sort of “stimulus funding for individuals.”

However, Nepean-Carleton MPP Lisa McLeod, the opposition revenue critic, said the new tax will do nothing but hurt the provinces most vulnerable with an additional 8% tax on many items previously exempt.

“They essentially ignored 75% of the population who was telling (the government) they don’t want this new tax, not now,” she said.

The opposition fought hard against the tax change, which Mr. Naqvi said has been successful in other Canadian provinces. Opposition tactics drew national attention as MPP’s protested the act, including one move which saw two MPP’s refuse to leave the legislature after being ejected by the speaker. Ms. McLeod said the party also filed over 5,000 amendments to the law, looking to slow down progress through legislative procedure.

Despite the opposition, which included thousands of signatures on petitions from the PC party, Mr. Naqvi said the new law would benefit everyone in Ontario by bringing the province’s tax system inline with those of “modern” economies.

“We have, obviously, concrete, empirical evidence from Quebec and Atlantic Canada where they did the same thing,” he said.

While many items, such as home heating, and gasoline, will see an additional 8% levy, Mr. Naqvi said the majority of items will not increase in price. Currently, he said 83% or consumer spending in Ontario includes the full 13% tax.

To offset the increases, Mr. Naqvi said new, permanent tax cuts and credits would be introduced on January 1. That means that residents receiving the federal GST credit will also receive a provincial credit, with the first cheques scheduled to be in the mail in August. Come tax time, residents will see cuts to the lowest tax bracket, offering support for low income families, and seniors on fixed income, as well as other individuals making less than $37,000 a year. To ease the “sticker shock” expected during the first year, the province would also make one-time payments of up to $1000 for families, and $300 for individuals.

“That is why we continue to argue it is not raising taxes,” Mr. Naqvi said. “It’s revenue neutral.”

Ms. McLeod said the opposition PC party would continue to fight against the tax law, though she said the province is currently locked into the plan for five years, with a penalty of $4.3 billion to be paid to the federal government should they reverse the decision.

She said the tax cuts aren’t enough to save Ontario residents from the financial burden of an increased cost on many common products.

“It’s disingenuous for the McGuinty government to tell Ontarians that is a good deal, because it simply isn’t,” she said.

The federal government is expected to pass a bill that would enable the province to apply the new tax, and would include a transfer payment of $4.3 million to cover the cost of tax cuts and credits. However, Ms. McLeod said she doesn’t feel the government is supporting the tax change, rather supporting the province’s right to manage its taxation system.

“The federal government isn’t supporting Mr. McGuinty’s plan to hand out $4.5 million in bribe cheques before the next election,” she said.

Though the law has passed, she said there is an opportunity for change in the 2010 budget, noting that her party will continue to pressure the government for changes at that point. She said the Liberal government has had a difficult session in the legislature, and added that the controversy of the HST would add to the party’s difficulties when the house sits again in the New Year.

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