The Effects of the HST

If you have been following this blog you will already know some of my views on the HST.  I wrote how to avoid paying the HST in Ontario and ways to fight the HST.  I've taken many stabs at Premier Dalton McGuinty's colossal and greedy tax grab.  An unexpected side effect of the HST is how it has affected the rest of Canada.  The HST has been in effect in BC and ON for three months now.  Let's see how well this tax is performing:

• slowed down house sales
• slowed consumer spending
• increased the federal deficit
• increased the inflation rate Canada wide
• created a tax revolt in BC forcing a referendum on the HST 
• if you believe the propaganda has created 6,300 jobs in ON

Well, it certainly does look like the HST is moving Canada into the 21^st century, doesn't it?  I give Dalton McGuinty and his sock-puppets full credit for this horrible fiasco! On a personal level, how has this affected us?  For the most part it has had a minimal effect.  Yes we are paying HST on electricity, internet and home heating that at present rates have added about $20 per month ($240 per year).  Occasionally we have to pay HST on gasoline but for the most part we avoid this by fueling outside of Ontario.   We are shopping and vacationing outside of Ontario.  Nothing is purchased in Ontario unless it is food through local farmers, orchards or organic farms.  We've cut back further on our electricity usage moving towards more solar.  All of our solar equipment will be purchased outside of Ontario as well.  We are also working on using a US internet provider that will eliminate our ON internet provider.  We did a trial run with one US provider but maxed out the bandwidth too quick for it to be feasible to make the switch.  The thing is that service worked better and was cheaper than our satellite internet and there was no HST.  We will be trying to connect to our vacation home US internet via Wi-Fi hot spot at home.  Apparently there is a good chance it will work!  If it doesn't it's just a matter of time before we find a US mobile service that will work for us.

Dalton McGuinty is driving people away from shopping or using services in Ontario.  Instead of that extra $20 collected it could be used towards buying consumer goods in Ontario.  He doesn't see that people are fed up with his dishonesty and taxing until we have nothing attitude.  This is going to be a very difficult for many Ontarians as they realize the full effects of the HST on just electricity and home heating, both of which increase during the cold winter months.  I also don't think McGuinty realizes we now live in a global community so Ontarians do have options for avoiding the HST.

I would be curious as to how many Ontarians will simply choose to leave Ontario permanently and how many will choose to live outside of Ontario for a good portion of the year?  While I've seen no reports on this effect of the HST, I'm sure it is happening.  The HST was directly responsible for our decision to buy a vacation home outside of Ontario and it is a major factor in us choosing to live outside of Ontario for extended periods of time.  I think this will be a growing trend for many!

Garden Gnome
©2006-2010

The Ontario Harmonized Sales Tax (HST) Update

It's now been over 2 months since the Harmonized Sales Tax (HST) came into effect into Ontario.  Despite election promises of no new taxes, Dalton McGuinty effectively increased taxes on 17% of consumer goods in Ontario.  The HST has had a bit of an unexpected effect though in both BC and ON as well as the rest of Canada.  BC has announced it will scrap the HST if voters demand it.  No such announcement has been made by the ON government and it is doubtful if there will be given McGuinty's greedy tax grab policies.

We have been finding ways to avoid paying the HST as well as voicing our displeasure over the HST.  In essence we have decreased our support of ON businesses for most consumer goods but we continue to support local farmers, growers and producers.   This isn't about the actual monetary costs of the HST either.  It is a matter of principle that we don't agree with the HST and the less of our money going to support McGruinty's greedy tax grab the better!  Overall the HST has had little impact on us other than purposely avoiding paying it if we don't have to.  Here's a few ways we've of avoiding HST or minimizing the HST we must pay:

• stopped buying any plastic shopping bags - We use mainly cloth shopping bags but occasionally end up having to buy a plastic bag at the grocery store.  The store charges 5¢ but did you know that HST on that is 1¢?  That's ridiculous! So we have made it a point not to buy any bags at all there.
• reduced our internet service - We were paying $70 for horrible satellite internet service which is the only high speed service available to us in our rural location.  Now that HST is added to the service we reduced it to the lowest available package of $50 per month plus HST.  The next option is to go back to dial-up or cancel the internet service all together.
• took our house off the market - We listed the house in March so planned to have it sold before the HST kicked in July 1.  The HST now applies to land transfer fees, real estate fees and lawyers fees so on the sale of a house that can really add up.  Once the HST kicked in it was obvious that those extra charges were hindering the sale of our house so it became one of the deciding factors in taking the house off the market.  If we ever put the house on the market again it will be privately which will at least save us the cost of HST on the real estate commission.
• general shopping - Since the HST kicked in we have dramatically cut shopping in ON for any item that has HST on it.  If it is something we really need then we look for the item used. Kijiji and eBay are great places to shop for used items from the comforts of you home without using the gas of yard sales since gasoline now has HST tacked on.  If it can wait it goes onto our shopping list for buying in the US when we can bring them back duty/tax free under our personal exemption allowed based on the length of time out of the country.  
• gasoline - We buy gasoline as much as possible in the US.  For day to day driving of the vehicles and when traveling any distance in ON then we still end up buying gas in ON so pay that HST but for the most part we can avoid a good chunk of the HST on gasoline.  We always fuel the boat in the US so that eliminates that HST.
• haircuts etc. - The HST now applies to services like barbers, hairstylists, nail salons and those types of things.  I trim my own hair and gave up on nail salons in favour of the all natural nail so pay no HST on these services.  A friend cuts my husband's hair for free so again no HST.
• hydro - There is now HST on our hydro bills based on the kWh used.  We are already well under the average household use of 1,000 kWh per month which makes us very good candidates for going solar.   We are moving in the direction of solar while using less electricity every chance we get.  I will guarantee you we won't fall into the ON solar plan where you sell back hydro for 84¢ per kW generated because McGuinty has already cut that price to infuriating farmers who bought into the scam.  We have a 5 year plan to be completely off the grid.
• natural gas - There is now HST on the natural gas we use to heat our home.  In our little corner of ON home heating in the winter is a must, something McGuinty fails to realize.  Aside from using good energy conservation methods we are also moving towards solar for subsidizing our home heating and we may convert our fireplace from gas back to wood that we will buy using cash through the underground economy.
• using the underground economy - The very fact that an underground economy exists means the above ground economy isn't working.  The HST has strengthened the underground economy.  Cash talks!  If we need something done around the house that we can't do ourselves it is as simple as putting the word out to find someone who will do the job for cash, cheaper and without HST.
• vacations - Our vacation home is in the US as is our other favourite vaction destination.  If we fly, we fly out of a US airport since there is now HST on flights out of ON.  Most of our two or three day mini-getaways are in the US as well.  This avoids having to pay HST on motel rooms.

Garden Gnome
©2006-2010

What the Ontario Government is Really Saying With the HST and Eco-Fee

The Ontario government under the leadership of Premier Dalton McGuinty despite campaign promises of no taxes introduced both the Harmonized Sales Tax (HST) which adds 8% tax on 17% of consumer goods and services and the Eco-Fee (aka tax) to be collected on 9,000 consumer products including items like CFLs, rechargeable batteries and laundry detergent.  What message is the Ontario government sending to consumers?  Here it is in a nutshell:

• shop the underground economy
• shop outside of Ontario - shop in Quebec, Manitoba and boarding US states
• quit shopping new but rather shop used
• convert to solar (buy supplies outside of Ontario) and/or heat with wood (currently no tax)
• and basically we lied to you during the election campaign so you now are paying the price

And good golly gosh, some folks have actually claimed that McGuinty's government is bad for Ontario.  I thinks his taxes are going to boost our popularity rating in the US, don't you?

Garden Gnome
©2006-2010

The HST Stimulus Cheque Explained

[from my email files.  Warning not for children.]

Sometime this year, we taxpayers will receive an ' HST Compensation'' payment.  This is indeed a very exciting program, and I'll explain it by using a Q & A format:

Q. What is an 'HST Compensation' payment?
A. It is money that the provincial government will send to taxpayers.

Q.. Where will the government get this money?
A. From taxpayers.

Q. So the government is giving me back my own money?
A. Only a smidgen of it.

Q. What is the purpose of this payment?
A. The plan is for you to use the money to purchase a high-definition TV set, thus stimulating the economy.

Q. But isn't that stimulating the economy of China?
A. Shut up.

Below is some helpful advice on how to best help the economy by spending your compensation cheque wisely:

* If you spend the stimulus money at Wal-Mart, the money will go to China or Sri Lanka.
* If you spend it on gasoline, your money will go to the Arabs.
* If you purchase a computer, it will go to India, Taiwan or China.
* If you purchase fruit and vegetables, it will go to Mexico, Honduras and Guatemala.
* If you buy an efficient car, it will go to Japan or Korea.
* If you purchase useless stuff, it will go to Taiwan.
* If you pay your credit cards off, or buy stock, it will go to management bonuses and they will hide it offshore.

Instead, keep the money in Canada by:

1) Spending it at yard sales, or
2) Going to hockey games, or
3) Spending it on prostitutes, or
4) Beer or
5) Tattoos.

(These are the only Canadian businesses still operating in Canada.)

Conclusion:
Go to a hockey game with a tattooed prostitute that you met at a yard sale and drink beer all day!

No need to thank me, I'm just glad I could be of help.

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Garden Gnome
©2006-2010

Now That I Have the Attention of the Legislative Assembly of Ontario

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