In an editorial May 7 in the Toronto Star, Len Crispino argues that a small increase in sales tax paid in the short term, is not a big price to pay for tax reforms that will ultimately increase wages, job creation and investment in Ontario.

The OCC has invested a great deal of time and research into understanding the impacts of sales tax harmonization and learning why it is the right choice for the province.  Since first adoping the policy in 2004, the chamber network in Ontario has provided a strong, consistent message to federal and provincial governments about the merits of the tax changes.  And while in the short term, the taxes paid on some services may increase, the elimination of sales tax on the many stages of production of goods and services will ultimately mean lower prices for consumers. 

“Naturally, no one wants to pay more taxes. Naturally, no one likes taxes at all. But, is it safe to say that everyone values jobs? That everyone wants to see a booming economy versus a stagnating one? Wouldn’t we rather see businesses opening versus closing?

Evidence shows that HST– or a value added tax – is good for the economy. By eliminating the layers of taxation levied against products before they make it to the store shelf – a value added tax makes it cheaper to produce goods and services. It makes our products more competitive in what is a global marketplace where competition is not just down the street, but across the ocean. Studies show it leads to lower prices.”

 As a result of the OCC’s advocacy efforts, the tax reforms first announced in the 2009 Ontario budget will cut the rate of taxation on new business investment in half.  This will not just be good for the business community, but also every citizen in Ontario who enjoys a high standard of living and  high quality government services.

Full implementation will take place July 1, 2010.  More information on the transitional rules and other must-know information for businesses can be found in this March 29, 2010 Focus article.