HST – What’s IN, What’s Out?
McGuinty Government’s Tax Plan Will Strengthen Economy And Create Jobs
There will be no change in tax for 83 per cent of purchases when the Harmonized Sales Tax comes into effect on July 1st.
From a morning coffee and newspaper, to municipal transit passes, cable, clothing and basic groceries, most purchases will see no change. Movies and professional sports tickets will actually see less tax, and Ontarians will not pay the provincial portion of the HST on items like children’s clothing, children’s footwear, diapers and books.
To help Ontarians better understand the real impact of the HST, a brochure has been mailed to households in Ontario listing those items that will and won’t change. An online App can also be bookmarked on most mobile devices such as Blackberry or iPhone.
Ontario’s comprehensive tax package is part of the five-year Open Ontario plan to create jobs, grow the economy and build a stronger Ontario. It is estimated that these changes will help create almost 600,000 net new within the next 10 years.
QUICK FACTS
- Ontario is providing a total of $11.8 billion over three years in direct payments and permanent personal income tax cuts to help Ontarians adjust to the HST.
- A study by taxation expert Jack Mintz estimated that Ontario’s tax plan will help create almost 600,000 net new jobs over the next decade and deliver increased annual incomes of up to 8.8 per cent.
- A new, comprehensive study – using Statistics Canada’s Social Policy Simulation Database and Model and reviewed by some of Canada’s leading economists – shows that the province’s tax system will be more progressive as a result of Ontario’s Tax Plan for Jobs and Growth.
