DST latest tax grab

Rita Poliakov
The Windsor Star

Ontario’s seniors can’t afford a harmonized sales tax, said Lisa MacLeod, a conservative MPP, on Tuesday.

MacLeod was joined by Tim Hudak, the Ontario Opposition Party leader, outside of a Windsor senior’s house to talk about how the harmonization of the sales taxes, or what Hudak called the “Dalton Sales Tax” will affect seniors and retirees.

“The DST is nothing more than the latest tax grab,” Hudak said.

According to the Canadian Association of Retired Persons, the average senior will pay $1,050 per year and the average couple will pay $2,100 per year if the PST and GST is merged.

“It’s time Ontario’s family and seniors get a tax break, not a tax hike,” he said, adding that the change would affect prices on vitamins, newspapers and gasoline. The PC party has started an online petition against a single sales tax, which could come into affect July 1, 2010.

Dwight Duncan, Windsor-Tecumseh’s MPP, said a single sales tax will benefit all Ontario residents, including seniors.

“This is the most important thing you can do,” he said, adding that harmonizing the sales tax will lead to an overall tax cut for Ontario residents by providing around $10.6 billion in tax relief over three years.

“What we have is an overall tax cut, particularly for seniors. (Hudak) conveniently forgot to talk about tax credits,” he said.

Residents will receive three Transition Benefit cheques over three years. Single people will get a maximum of $300 over three years and couples and single parents will receive $1,000 in total over the same period.

Duncan said the personal tax cut will balance the additional costs of a single sales tax and added that the tax would help businesses in Ontario. According to the provincial Ministry of Finance website, merging taxes will mean $4.5 billion in business tax relief over three years. The Corporate Income Tax rate will also be reduced to 10 per cent over three years. The basic income tax rate is currently 14 per cent.