# Will the Government exempt residential utilities from HST??



## Dana (Nov 17, 2009)

I am in Ontario where we are not-so-eagerly awaiting the introduction of HST in July of this year. This means many products and services which were previously exempt from PST will now increase in cost because they will be subject to the new HST. 

I was watching the local news this morning and industry analysts are expecting HST to add *an additional $100 - $125 *to both Hydro and Natural Gas costs for the average Ontario household. WTF???? Didn't the Ontario government exempt coffee?? Not only does this add yet another component to our utility bills that we can't control (actual usage accounts for a small part of my hydro and gas bills) but what about all the people struggling to pay these bills already??? Do you think there is any chance the provincial government will exempt utility bills?


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## HaroldCrump (Jun 10, 2009)

If they have made up their mind, they won't budge.
McGuinty is determined to push through the maximum possible taxation as part of the HST - the only exempt items are some baby products.
After all, he's gotta find the money to pay for all the auto sector and manufacturing bailouts, the stimulus packages, the wage increases for all 'them poor striking TTC workers, garbage collectors, teachers, etc.

I've had it with McGuinty and his tax-grabbing govt.
I know as an individual I am powerless to change the HST, however, I will exercise the power that I _do_ have - by *not* voting for his govt. come next provincial elections.
I would rather vote for a yellow chimp than this govt.


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## OptsyEagle (Nov 29, 2009)

HaroldCrump said:


> I would rather vote for a yellow chimp than this govt.


Ah, to have a more qualified candidate like that to vote for sure would be a refreshing change.


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## Dana (Nov 17, 2009)

I guess I don't understand how they justify exempting a cup of coffee (a luxury item purchased thousands of times per day) but not exempting heat and light (necessities).


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## CuriousReader (Apr 3, 2009)

Dana said:


> I guess I don't understand how they justify exempting a cup of coffee (a luxury item purchased thousands of times per day) but not exempting heat and light (necessities).


Because Mr. McGuinty and his govt would want to make sure you pay more on your taxes. If he exempt the real necessities while taxing the luxuries - then people have a choice to avoid those. By taxing the necessities, none of us can avoid their tax-grabbing scheme.


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## the-royal-mail (Dec 11, 2009)

How about his "Health Care Premium" (tax) right after he specifically campaigned and stated in 2003 he wouldn't raise taxes? Next election instead of giving him a swift kick, ON gives him another MAJORITY GOV'T!

Sorry folks, but Ontario is getting exactly what it voted for.


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## CanadianCapitalist (Mar 31, 2009)

the-royal-mail said:


> How about his "Health Care Premium" (tax) right after he specifically campaigned and stated in 2003 he wouldn't raise taxes? Next election instead of giving him a swift kick, ON gives him another MAJORITY GOV'T!
> 
> Sorry folks, but Ontario is getting exactly what it voted for.


I did not vote for McGuinty but while I think the HST is not a popular tax, it is the right thing to do. Don't forget that the tax is revenue neutral to the government and the HST is accompanied by business tax cuts. Yes, we'll be paying more but we'll also be gaining in other areas whether it is as owners of capital or as consumers of products the businesses produce. 

I hated the health premium primarily because it is such a lop-sided tax that hit the middle incomes the hardest.


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## bean438 (Jul 18, 2009)

CC do you really think that business will pass on the savings to consumers? I will believe it when I see it.


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## CanadianCapitalist (Mar 31, 2009)

bean438 said:


> CC do you really think that business will pass on the savings to consumers? I will believe it when I see it.


If they don't, you'll benefit as an owner of capital. The experience of those provinces that have implemented the HST is that businesses have passed the savings on to the consumer after a lag. That's why there is the transition tax credit to ease the pain.

The critics of the HST who say that businesses won't pass their savings along should justify why it is so. You don't see economists criticizing the HST. Instead, it is the general public who are complaining because their haircuts and heating bills will cost more without looking at the big picture.


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## bean438 (Jul 18, 2009)

I would fully expect everything to go up in price. I agree as an owner of capital I will benefit.
But I remember when GST was implemented alot of stuff just went up 7% in price. The old tax of 12%??(I think it was a manufacturing tax) was not passed along.


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## the-royal-mail (Dec 11, 2009)

The average person is not concerned with any big picture beyond what he has to pay at the cash register. The gov't wouldn't be doing this if it was revenue neutral. Mulroney brought in his bloody GST in 1991 and no prices went down. More recently, Flaherty announced that home reno tax credit and business responded simply by raising prices. Tax and fee increases are not good for consumers who are already overtaxed as it is. That is GST, HST, Health Care Tax, user fees and whatever other additional charges you can think of. EVERYTHING is going up. Otherwise the gov't wouldn't be doing it.


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## Ben (Apr 3, 2009)

CanadianCapitalist said:


> You don't see economists criticizing the HST. Instead, it is the general public who are complaining because their haircuts and heating bills will cost more without looking at the big picture.


This is usually a pretty good litmus test - see who's doing the complaining.


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## HaroldCrump (Jun 10, 2009)

"Big picture" doesn't pay the bills - I do.
And my monthly expenses just went up by 8%.


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## Kirkland (Sep 15, 2009)

It's not all bad. As someone speculating on the CAD falling in the foreign exchange markets this is the perfect facilitator, thank you government!


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