Thursday means budget unveiling at Queen's Park, but ahead of the 4pm breakdown families across the province were already anticipating $1,000 back as a result of the so-called harmonized tax.
The plan means the GST and PST will be rolled into one, putting a grand back in the pockets of families earning less than $160,000 a year.
The downside?
You'll be paying more for a number of things that currently don't draw PST, but the expectation is there will be exemptions for things like kids' clothes, diapers and meals under $4.
Still, Premier Dalton McGuinty looked rather uneasy answering questions about what some say will be a tough political sell.
"As we move forward in a way that is going to both improve quality of life for families and strengthen the economy, we are going to fight to strike the right balance. I don't know that I can be anymore cryptic than that," he noted.
One of the hardest hit areas will be the construction of new homes. If the home is priced under $400,000 just the five per cent GST will be tacked on. But anything above that will draw the 13 per cent harmonized tax.
The
Canadian Taxpayers' Federation has already attacked the idea, opposing the upping of taxes for consumers during an economic meltdown.
"The bottom line is taxes continue to go up and up and up in Ontario," said the CTF's Kevin Gaudet. "It's going to be a huge tax hit, especially at a difficult time when individuals and families are finding it difficult to make ends meet."
But proponents promise the harmonized tax will save businesses $100 million a year by reducing red tape - and say they'll be able to create more jobs and pass any savings on to you.
And Toronto Mayor David Miller offered a local perspective, suggesting he was at least encouraged by the idea of money in the pockets of Torontonians in an immediate sense.
"People who are working two or three jobs trying to keep food on the table, that'll help them in the short term," he said. "Past that, let's see the details in the budget."
Here's a list of goods and services that may rise by an estimated eight per cent with the change:
- Newspapers;
- Magazines under subscription;
- Taxi, bus, airplane and train fares;
- Gasoline, diesel fuel and propane;
- Residential electricity, natural gas and firewood;
- Campground site fees;
- Home Internet services;
- Certain residential Energy Star appliances;
- Vitamins;
- Gym and fitness memberships;
- Bicycles (and related safety equipment) costing less than $1,000;
- Accounting and legal services;
- Certain financial services fees;
- Construction labour including home building and renovation labour;
- Car towing services;
- Grass cutting and snow removal services; and
- Real Christmas trees purchased in December
Courtesy:
Cdn. Taxpayers' Federation
Some items will remain exempt from additional taxation. Those include:
- Basic groceries such as flour, sugar, spices, breads, cheese, fruits, vegetables and milk;
-
Prepared foods sold by an eating establishment for $4 or less;
-
C
hildren's clothing, diapers or footwear costing $30 or less;
-
Drugs and medicine sold under a doctor's prescription;
-
Dry cleaning, carpet and upholstery cleaning and hairstyling, barbering and beauty treatments;
-
Car washing or engine shampooing
If the harmonization comes in as expected there won't be an immediate spike. It will take some time to create the new tax and it's expected it could be in place by July 1, 2010.
CityNews.ca will have all the budget highlights and will tell you how it will affect your family when the document is unveiled shortly after 4pm.
Libs. Confirm Exemptions And A $1,000 Cheque Ahead For Most In Wake Of New Tax Announcement