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The Goderich Signal-Star, 2009-09-23, Page 6Page 6 - Goderich Signal -Star, Wednesday, September 23, 2009 www.goderichsignalstar.com Proprietor and published by Bowes Publishers, P.O. Box 220, 120 Huckins Street, Goderich, Ontario N7A 4B6 EDITORIAL Will new taxes bring harmony to the system? By July of 2010, taxpayers in Ontario will face the harmonization of the provincial sales tax with the tax on a number of goods and services. In short, it means that taxpayers will be paying taxes on a number of items that did not previously draw provincial sales tax such as dry cleaning, haircuts and gym memberships. The tax landscape is about to change in Ontario. But is it a good tax measure that serves the system well or a tax grab that will punish people unnecessarily? What will happen next year is that goods and services that were only taxed through the GST at the federal level in the past, will see the rate jump to 13 per cent from 5 per cent in Ontario, where residents will see a higher rate imposed on 19 per cent of their purchases. A study by TD Economics suggests that four -tenths of one per cent is the increase in the average consumer price level as a result of the harmonization of the taxes. Will it lead to greater efficiency and neu- trality in taxes in Canada and translate into international competitive- ness. That's what the study is purporting, claiming that businesses in Ontario and BC where harmonization will also come into play, are likely to save nearly $7 billion annually, thanks to the HST. The theory offered by the study's_ authors, claims that businesses, having to com- pete with each other, will lower prices. That's based on the experience from the GST and HST in the prov- inces that have gone ahead with the harmonization, but the caveat is that it will take as long as six years for the savings to flow through the system down to the consumer. So, in the short term, there will be tax pain. Retail sales tax in the province has largely been levied on goods, rather than services, but a number of exemptions have existed. Harmonization is a value-added tax, like the GST, which means that taxes are applied at each stage that the product or service passes through. Still, a permanent .4 per cent rise in the average Canadian consumer price level is not to be taken lightly. In this economy, taxation increas- es of any kind, mean that less disposable income is available to average taxpayers for the necessities of life like rent, food and mortgage pay- ments. Increases simply become added burdens that average Canadians can- not afford. While there has been a reduction in the government's Goods and Services Tax of two percentage points, it has meant that people -adjust- ed to level of taxation that was more comfortable and equitable. It is suggested that value-added taxes are certainly better for income taxes and productivity, the HST will add a new burden at a time when the economy is struggling to turn green shoots into full blown eco- nomic recovery. The government should, after harmonization is in place, set it sights on reducing the income taxes of ordinary Canadians. D.S. • The Goderich Signal -Star. published every Wednesday at Goderich. Ontario is one of The Signal -Star Publishing Group of Community Newspapers. a division of Bowes Publishers. The Goderich Signal Star shall not be liable for failure to publish an ad for typographical ermrs in publication except to the extent of the cost of that portion of the ad in which the error occurred. The Goderich Signal -Star nese rves the right to reject or edit any advertisement. The Goderich Signal -Star is a pmud member of the Canadian Community Newspapers Association (CCNA) and The Ontario Community Newspapers Association (OCNA). au■roM WWI Editorial Deadlines... All Advertising Deadli Entertainment, Births, In Memoriams... Classifieds... Display Advertising... Telephone Fax.... Publisher... Reporters... Cookie sales support students To the Editor; This week there are even more smiling faces in the Goderich Tim Hortons. While supplies last, customers can purchase a special smiling chocolate chunk cookie for $1 plus taxes and all the proceeds will be donated to Eat and Learn Huron Perth School Nutrition program. This is the fifth year generous customers will help raise funds to support Huron Perth Eat and Learn. The funds will support student nutrition programs in local communities. Huron Perth Eat and Learn supports over 60 Student Nutrition Programs across Huron and Perth Counties. Along with funding from the Ministry -of Children and Youth Services, Friday at 2 pm nes... Deaths, • Friday at 2 pm 519-524-2614 519-524-5145 Dave Sykes Dominique Milburn Gerard Creces Denny Scott Letters opinion schools look to the community for volunteers and financial support. All programs serve a fruit or vegetable every day and the programs are open to everyone. More information is avail- able at www.osnp.ca. Nancy Fisher School Nutrition Program Coordinator Huron -Perth Eat & Learn Huron County Health Unit Classifieds & Subscription... Accounting... Office Manager... Display Sales... Advertising Manager... 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