Mr. Speaker, I am delighted to speak again in opposition to what is essentially an 8% ripoff for Ontarians and the people in British Columbia.
If the Prime Minister and the McGuinty Liberals have their way, a haircut next summer would cost 8% more. Burying a loved one would cost 8% more. Vitamins, a pair of sneakers, postage stamps, vet fees for a dog and an oil change for a car would all cost 8% more. Even the price of gas would go up. That would hurt a lot of families, seniors, young people and small businesses.
From the outset, the NDP said that the HST was the wrong tax at the wrong time. The recession is still being felt, unemployment is still rising and this regressive tax will take $2.5 billion out of the pockets of those who are least able to afford it. To add insult to injury, the Prime Minister will give Premier Dalton McGuinty $4.3 billion in exchange for his agreements to tax Ontarians more. B.C., which will also get the HST, is being paid too. Therefore, I can understand why Quebec, which has already harmonized its sales taxes, will want compensation.
These payouts are all money that drives Canada further into debt, and for which the government has not budgeted.
At the same time, big companies will win the jackpot yet again with another $1.5 billion in corporate tax cuts and, as McGuinty and the Prime Minister boast, the HST will cut business input costs even further. In other words, the HST will drive up taxes for families and lower them for big business.
The Prime Minister and McGuinty say that we need to look at the bigger picture. Okay, let us do that. Here is what we see. This recession was caused, not by high wages or a lack of initiative on the part of working Canadians. It was caused by a carnival of greed among bankers, financiers and others who took reckless risks and triggered a worldwide financial crisis.
Yet seniors and hard-working families are the ones taking it in the neck. Pension funds are in difficulties. Retirement savings tucked away in RRSPs have lost much of their value. From next summer onward, big business would pay less and ordinary Canadians would pay more for everything from Internet services to gasoline. That is hardly fair. That is why we are currently locked into battle in the House of Commons to block the legislation that will allow the federal government to foist the HST on Ontarians.
Under the leadership of the member for Etobicoke—Lakeshore, the Liberal Party has sided with the Prime Minister, who has launched an underhanded gambit to ram through the House before the holiday break. It is his way of saying, “Merry Christmas”.
There will be no consultations on the HST law, no committee hearings, no opportunity for Canadians to have their say. The Prime Minister does not want to hear from retiree groups, real estate associations, minor hockey organizations, provincial premiers and many others who have declared their opposition. He wants us out of the way as quickly as possible. He wants to hang this tax on Premier McGuinty. He wants us to get used to this tax grab so we will not blame him forward to the next election.
We will not let the Conservatives take the blame because we know that this is the wrong tax in the wrong hands at the wrong time, and the Prime Minister knows it too. Here is what he said about the HST in the House in December of 1996 when he was in opposition:
We need another way. This harmonization of the GST, this tax collusion between provincial and federal Liberal governments, is not the way to reverse the economic decline of this country.
Here is what the current Minister of Indian Affairs said when he was in the Conservative opposition, “The proof is in the pudding. This harmonized sales tax is going to hurt Atlantic Canada”.
Liberals, who are now supporting the HST, are flip-flopping like mad because they too are on record as opposing the HST. The member for Vancouver South said, “It is absolutely horrendous and it is criminal on the part of the Conservative government to be pushing this policy at a time of deep, economic recession”. He should have made certain that his leader would not flip-flop on yet another policy issue before he decided to go on the record. Now it is coming back to bite him.
Despite the fact that all of these quotes prove my point that the HST does not deserve anyone's support, I am much more concerned about the quotes that I am getting in a flood of emails, letters and phone calls from my constituents on Hamilton Mountain. They know they are getting a raw deal and they deserve to be heard. If the government will not listen to me, perhaps it will listen to the people whose vote it needs to woo.
The first is from Mark, “Charging my customers this cost will hurt my business for sure”. That is from a businessman.
Mrs. Longille says, “We don't need this extra tax. People don't have the money or jobs and are not over this deep recession. I am 79 years old”.
Marg says, “The well is dry. When are the powers that be going to recognize that average citizens can bear no more? Please No HST”.
Ronald writes, “I am a senior on a disability. I am barely making it every month. I live in my parent's house that was left to him and do not want to give it up. I have lived here all my life”.
Debra says, “We're just barely getting by now. This is just going to put us over the edge”.
Ed says, “This tax does not surprise me. That is the Conservative way”.
Fred says, “I am on a fixed income with no cost of living raises. I'm retired, but not by my choice. We are one of the most taxed countries in the world. Are they never going to be satisfied?”
Letty says, “It is unfair to expect low income families and seniors to pay more taxes. Can this change not be stopped somehow?“
Debra says, “We're just barely getting by now. This is just going to put us over the edge”.
Gerry writes, “I feel that “increasing” sales taxes by harmonization is a bad idea. This is a large increase for us consumers by having to pay additional taxes that are now not required on the provincial tax level. ie. heating bills, hydro, new houses, labour on auto repairs etc. Please help stop this tax grab”.
Another person writes, “I am totally against the HST and the 8% tax increase that our governments are trying to place on us. This will surely hurt my family as well as the other Canadian families in Ontario. I believe that the Leaders that we elect have a responsibility to the people of this country to improve the quality of living or life just as we the people have that same responsibility.
The Government's that we elect are not to put burdens or yokes around our necks and this TAX would be doing just that along with other POLICIES that are in the works. The Greed of our Government Officials (not all) and the lack of there integrity are surely hurting Canadians and this Country. I wish that we would go back in time and learn from history to see the problems that Russia and other Countries had and recently came out of. I truly hope that you will sound the trumpet on the issue of the HST and other POLICIES”. I am happy to do that on behalf of Patrick.
Bill writes, “I felt that I should forward this e-mail about the HST to you. Please, help us. We, the seniors of Ontario, are going under like the Titanic”.
John and Jacquie write, “As senior citizens, we have to be very careful with our money and it seems that this new government initiative...does not bode well for us. As you know, the blending of the PST and GST will result in higher end costs for virtually most goods and services. How can this possibly be justified?”
Anne Thors writes, “I think it is outrageous what the provincial and federal governments are doing to us, especially to the seniors. All the MP's and MPP's are well provided for, they are all just a bunch of sorry story tellers. They are forgetting that our vote put them in that place. Will they be surprised when we all change our minds? I am an outraged senior”.
Another person writes, “What happened to the election promise that no taxes would be increased? I guess technically McGuinty isn't raising taxes, he's just creating a new tax. In this time of economic strife, Mr. McGuinty is being completely irresponsible and totally out of touch with the needs of the “little people”. It's hard to know what they need when you are constantly rubbing elbows with the elite”.
Charles says, “In Ontario we are being taxed to death! As a senior we are not getting any increases?”
Frank writes, “After serving in the military for $1.35 a day and being on pension for 25 years and still paying I have done my share. They are trying to squeeze more out of me?”
Armand writes, “Just another tax for seniors and the people in Ontario by the Provincial and Federal government of Canada”.
Doreen writes, “This is a gouging from everyone, especially the low income people. Keep fighting for us”.
Douglas and Sylvia Chisholm of my riding write, “[The Prime Minister] and Mr. McGuinty—Are you losing touch with the people you're supposed to represent? I believe you are”.
John writes, “I'm struggling right now, taxing my utility bills could be what will sink me, and many other families, I am sure”.
“Please do what you can to block the GST.” That is from Linda and Ralph.
Jean and Ronald write, “My husband and I are seniors on a fixed income and would like to add our names to your HST petition... It is pretty scary reading all the additional services and/or items that will have this blended tax added and we would like our voice to count in objecting to this additional tax on the presently exempt services/and or items”.
John writes, “With the added of the cost to the utilities and other non-luxury items we have no extra income to keep the economy rolling. We are taxed so heavy now I don't have extra for my family. If you keep taxing our spending will eventually have to stop”.
Here is one from a businessman that members might be interested in. He writes, “As a constituent in your riding of Hamilton Mountain I am asking for your support on the federal front to block the HST legislation. At a time when most, if not all, Canadians are tightening their belts due to tough economic times, we are facing increases on the simple necessities to heat our homes and turn on our lights with this new tax grab. The claims of job creation, et cetera, fall on deaf ears. The only job creation I foresee is another level of government bureaucracy to manage it. As a small business owner, I see no advantage. Business cheques are cheap and I don't mind signing eight instead of four. What I do mind is investing more of my working capital into a never ending loop of payables and receivables, that I will never gain back these moneys 100% unless I liquidate my inventory and close up shop. As an Importer, I will have to pull the full 13% from my pocket when I customs clear my orders instead of the current 5% GST. I don't know how I'm supposed to benefit from laying out an extra 8% up front and waiting to recoup that money on receivables later. I am a very proud Canadian, but things like this shave a bit off the top of that pride every time it is forced down our throats by those who are elected by us and draw a salary from our hard work. If the opportunity arises in Parliament to defeat this legislation, I ask you to hear my voice as a resounding NO!”
Another email stated, “I think or I know it is disgusting that the Conservative Government and the Ontario Liberal Government have lied and taxed people to the hilt and expect to get blood out of a stone with the Harmonized Sales Tax”.
Ruggerd and Annie write, “Very unhappy about the tax increase. We are on a fixed seniors pension. I think [the Prime Minister] should smarten up and try to help us not destroy us”.
Renee writes, “My family is not ok with the tax hike. We cannot afford to buy food or pay our bills now. We are out of work and trying to find a job is tough enough. This new tax will kill us, we will lose our house”.
Amanda writes, “We are a family - 2 adults and 3 children, already struggling - no tax increase please!”
Audrey writes, “As a housewife with everything going up in price, I am having a hard time. At my age it is very hard to make ends meet”.
Mr. and Mrs. Cappadocia write, “Enough is Enough! My husband is laid off and we find making ends meet now very difficult. A recession is not the time to add more tax”.
Pat and Jackie write, “How distressing! This is just another big tax grab, thank you for informing us of this so-called bribery. Is anyone honest anymore?”
Mr. and Mrs. Robertson write, “My husband and I are seniors, and anymore tax increases are just going to be unbearable. If our pensions increased like the government's do maybe we could make ends meet. Thank you for your hard work on this issue”.
Lawrence writes, “Greed knows no bounds. Those who survive from pay to pay or pension or pension will indeed lose disposable income they cannot afford to”.
Ellen writes, “This tax is an added burden for the unemployed people who are already unable to cope now”.
Marianne writes, “If this is so great a deal, why the advertising blitz outlining its benefit!! It didn't work in the Atlantic provinces and it won't work in Ontario either. Its about time the government listened to the people who are paying the bill”.
Mr. and Mrs. Van Rooyen write, “If this goes through, I know who our family will be voting for in the next election”.
Ruth Morrison writes, “This is no way to get people spending. If they're paying more for the essentials how are they going to have extra money for non essentials?”
Teresa and Regina write, “We are disgusted that they should keep grabbing what little money we have left from our pensions”.
I could go on and on. Perhaps I will get another chance later on in this debate to continue relaying the outrage expressed by my constituents.
However, let me just sum up the arguments that are inherent in the hundreds of emails that I have received and those that I just read.
First, the tax is inherently regressive. It disproportionately hits those who have no choice but to spend all or a large part of their income, and it favours those with income to save. This is doubly true in a recession where less than 50% of the unemployed qualify for EI, where social assistance rates are well below the poverty line, and the cost of essentials loom all the larger.
Second, the HST extends the sales tax to essentials previously not covered by the PST, and apart from those items exempted, and those differ from province to province, those with the lowest income have no choice but to pay it and sacrifice consumption elsewhere. The HST is hitting those who can least afford it harder than anyone else. The tax, quite simply, is unfair.
Third, without significant compensating measures, like the GST tax rebate, or significant exemptions of essential goods and services for low and moderate income families, the tax remains unfair. Our experience with social support programs does not reassure us. Governments that have demonstrated a callous disregard for the plight of low and moderate income households cannot be trusted to apply the HST fairly.
Fourth, the suggestion that the HST will lead to significant increases in investment is unproven. Economist Erin Weir has pointed out that a significant proportion of business inputs in Ontario are already exempted from the PST, therefore removing the remaining tax on inputs will not have the impact that the government claims.
Fifth, if as is argued a sales tax is bad for investment compared to the tax on profits, then why is the removal of sales taxes from inputs not matched by an increase in corporate income taxes? In fact, the opposite is true. The HST is accompanied by corporate income tax cuts at both the federal and provincial levels. In other words, the HST is part of a general and indiscriminate shift in tax burden from the corporations to individuals and families without adequate compensation.
Sixth, progressive economists argue that if we want to use the tax system to encourage investment, across-the-board cuts are an inefficient way to proceed.
Seventh, with the economy operating at two-thirds capacity, increasing profits by lowering taxes through the HST is not as likely to foster new investment as it might when the economy is booming. The timing of this tax, again, is inappropriate.
Last, as for lowering prices, this assumes businesses will pass along their savings to consumers. If this happens, it will happen only in competitive industries. Studies show much less than 100% of the savings are passed on to consumers. In other words, price increases are virtually inevitable.
In conclusion, let me repeat, this is the wrong tax in the wrong hands at the wrong time. It continues the pattern under successive federal Conservative and Liberal governments of pursuing policies that boost the returns to a privileged corporate elite on the flimsy excuse that they will use those returns to benefit the rest of us. Three decades of growing income inequality in this country prove those promises false.
