Tim Hudak Fights for Ottawa Seniors who Will Get hit Hard by HST

News

OTTAWA – For seniors struggling to get by on fixed incomes, Dalton McGuinty’s HST tax grab will be simply unaffordable, Ontario PC Leader Tim Hudak said today.

Hudak was joined by Ontario PC Critic for Revenue and Government Accountability, Lisa MacLeod (MPP Nepean-Carleton) at Sterling Place Retirement Residence in Ottawa today to meet with seniors who are concerned that Dalton McGuinty’s $3 billion HST tax grab will be simply unaffordable.

The HST will apply to a wide range of products and services that retired seniors use every day. Starting on July 1, seniors will be forced to pay more for things like gas, hydro, home heating, natural gas, haircuts, financial planning and home renovations and repairs.

In fact, the McGuinty Government has admitted that the HST will force seniors to pay an extra $225 per year on gas and hydro bills alone.

The HST will also be a tax on retirement savings and related services, such as mutual fund fees, exchange-traded funds, insurance premiums, lawyers and estate planning, accountants and more.

Hudak said the Ontario PC Caucus will continue to use all of the tools available to us to continue fighting for Ontario seniors and get our province growing again.

Quotes

“With the HST, Dalton McGuinty is once again forcing Ontario seniors on a fixed income to pay more to get less in return. He has stuck his hand into the pocket of taxpayers deep enough as it is. This latest tax grab needs to be stopped.”

– Tim Hudak, Ontario PC Leader

“Dalton McGuinty’s $3 billion HST tax grab is bad news for seniors. But this is not a new phenomenon. For more than six years the household budgets of middle class Ontario families have been under siege whether it’s the Health Tax, Smart Meters, de-listed medical services, or insurance premiums.”

– Lisa MacLeod, Ontario PC Critic for Revenue and Government Accountability

Quick Facts

There are 1.7 million seniors living in Ontario (13.5% of the population).

The HST will apply to a wide range of products and services that retired seniors use every day, including gas, hydro, home heating, natural gas, haircuts, financial planning and home renovations and repairs.

According to recently released reports from the Ministry of Finance, the HST is expected to increase gas and hydro bills an extra $225 per year on alone.

Seniors who enjoy an active lifestyle will pay HST on memberships, golf fees, admissions to events and other fees.

The HST will be a tax on retirement savings and related services, such as mutual fund fees, exchange-traded funds, insurance premiums, lawyers and estate planning, accountants, etc.

An estimated 51% of mutual fund owners are near-retirees (45-64) and another 22% are retirees (65+).

“An Ontarian saving $5,000 each year will lose $42,000 over a 35-year career due to the 5% GST plus 8% HST. This compounding of small GST/ HST amounts each year will add up to close to half of the $103,000 that the average over-55-year-old Canadian has saved for retirement in an RRSP – it is also the equivalent of 8 years of savings” (Source: IFIC, September 2009, “Dealer/ Manager HST Toolkit”).