CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Report: Ontario's HST Not A Tax Grab

Report: Ontario's HST Not A Tax Grab

by Mike Godfrey, Tax-News.com, Washington

15 December 2009


The majority of taxpayers from Ontario will not be worse off when the proposed Harmonized Sales Tax (HST) is implemented, says an in-depth analysis released by the Canadian Centre for Policy Alternatives.

The report, titled "Not A Tax Grab After All: A Second Look at Ontario’s HST," concludes the Ontario government’s HST plan is virtually revenue neutral when viewed as part of a total tax package that includes increased sales and property tax credits and a significant decrease in personal income tax rates.

“No group is significantly worse off or better off as a result of the province’s HST plan,” says the study’s co-author, University of Toronto professor Ernie Lightman. “Assertions that this is a tax grab have no foundation in reality.”

Among the study’s key findings:

  • Increased sales and property tax credits combined with reduced personal income taxes negate the regressive potential of the new HST;
  • The net combined effect of all the changes – new HST plus sales/property tax credits plus personal income tax reductions – is very close to neutral, a CAD37 annual loss in income when averaged over all families in Ontario;
  • Ontario families with the lowest incomes (below CAD20,000) will be better off by around CAD90 on average; those with incomes below the Low Income Cut Off (after-tax), come out ahead by around CAD140;
  • Non-poor families will lose about CAD60 per year on average;
  • The richest families – with incomes above CAD100,000 – will be worse off by nearly CAD390 annually (approximately 0.2% of family income).

“The biggest concern is to ensure Ontario’s poor aren’t hit hard by the introduction of a new sales tax,” says co-author Andy Mitchell. “After looking at the numbers we find the interests of the poor are relatively well protected.”


To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »