New Democrat Motion Would Stop HST in Ontario

While Rafferty acknowledged the proposed HST may help some businesses increase their profit margins, he believes that any benefits to business will pale in comparison to the negative effects that the 8% sales tax increase will have upon families and household budgets in the province.

SAULT STE. MARIE – The controversial new Harmonized Sales Tax (HST) coming to Ontario next year making people pay more for items like fast food, haircuts, travel and even funerals would be history if a New Democrat motion passes Parliament.
 
Northern Ontario NDP MP John Rafferty (Thunder Bay – Rainy River) has tabled a motion that would cancel a planned $4.3 billion federal incentive payment to the Ontario government, and prevent the HST from being implemented in that province. Rafferty is also calling on the general public to rise up against the new tax scheme by pressuring their Conservative MPs to support and implement his motion.
 
"The Ontario government has made it clear that if they don't get the $4.3 billion to bring in HST that they are not going to go ahead with it ... we can nip this in the bud," Rafferty said Friday.
 
"Anyone on a fixed income is going to pay a terrible price for this. Even if you look at regular middle-class families with a couple children, it will end up costing them thousands of dollars extra over the course of the year."
 
Sault MP Tony Martin welcomed Mr. Rafferty’s motion noting just this week a delegation from the Association of Iroquois and Allied Indians including Batchewana Chief Dean Sayers met with him, also upset with the tax for violating treaty and aboriginal rights.
 
“I understand Ontario tells them the lead on the HST is from Ottawa and in Ottawa we hear Mr. Harper ducking responsibility saying Mr. McGuinty is calling the shots,” Martin said. “It’s not surprising with so unpopular a tax and the prime minister claiming he’s not raising taxes that they are both passing this buck to the taxpayer.”
 
While Rafferty acknowledged the proposed HST may help some businesses increase their profit margins, he believes that any benefits to business will pale in comparison to the negative effects that the 8% sales tax increase will have upon families and household budgets in the province.

“I’m quite sure that some businesses will save a few bucks in all this, but it will be financed entirely by consumers and families who will be paying 8 percent more for everything from their gas, to camping, and funerals,” Rafferty said.
 
Rafferty said the NDP is the only federal party that opposes the $4.3 billion federal payment to the Ontario government and the implementation of the HST in Ontario, but they are not alone in their criticism of the tax scheme.   In a survey of its membership released this past September, the Canadian Federation of Independent Business (CFIB) which represents more than 100,000 small business owners found that 75 per cent of respondents expressed concern over charging higher tax rates on goods and services, and 44 per cent anticipate subsequent growth in the underground economy related to their goods services as a result of the introduction of the HST.
 
Rafferty concedes that his motion to end the HST in Ontario has but one obstacle – it requires the support of federal Conservative MPs, but he is calling on the general public to rise up against the tax and pressure the government and its MPs into supporting M-462.