Ontario’s upcoming HST is a hot topic right now with many strong opinions pushing against both sides of the HST fence.

As always its important to remember that HST Ontario is not affiliated with any government, HST body or agency related to HST. Our role on the internet is to provide news, facts and information on harmonized sales tax and tax reform in Ontario.

HST Ontario is dedicated to sharing a range of HST opinions and perspectives in the HST debate.

Our always expanding coverage of the HST debate begins here with a brief glimpse at the two opposing sides in the HST argument:

Fighting HST

Many anti HST movements surprisingly consist of both conservative and liberal Canadians, many with their own opinion or grievance against HST.

Here are just a few reasons why the anti HST crowd is no fan of the new Ontario sales tax:

• Tax Increase – Most of the argument against HST surrounds the fact that on July 1st many items that were once ‘lightly taxed’ will now bear a robust 13% sales tax. This tax increase, for many Canadians, just doesn’t sit well.
• Timing – A major issue Ontario residents and anti HST politicos take with HST is its timing. The problem? While the economy is in recovery mode after what some call the worst financial crisis in decades the people of Ontario are being “slapped” with a tax hike. To many, increasing sales tax in a bad economy is both unfair and dangerous.
• Cash Grab – Tax, defined, is a way for governments to absorb revenue from the people it governs. Canada has always been able to appreciate that their higher tax rates lead to better public services but in the case of HST many citizens and politicians view the new tax as a simple and unfair tax grab.

HST Ontario wants to point out that the case against HST is not limited to the issues mentioned above. Visit our HST Debate page for more insight into the HST argument.

Defending HST

Then there is the other side, the pro HST movement. Team HST is full of supporters that see HST as a means of absolving hidden taxes, creating jobs and updating a tired old tax system for a more efficient Ontario.

Here are just a few points Ontario HST supporters are making:

• Tax Savings – Because HST will allow business owners to receive more back from the government, many of them support the new sales tax. By charging a single value added tax that businesses can claim back, there is speculation that overall costs will eventually drop leading to price reduction for many goods and services.
• More Jobs – Many HST advocates point out that implementing harmonized sales tax in Ontario will mean an increase in jobs. It has been stated that HST tax reform will allow businesses to avoid sales tax on many items they need to operate and boost investment in Ontario business to the point where over 500,000 new jobs will be created.
• Reduce Hidden Costs – In many cases sales tax is charged and compounded at multiple levels of the production process. Those taxes are often passed down to the consumer in the form of increased prices. With HST, businesses will be free from paying sales tax on many items, including those they need to operate. Many believe this will lead to a reduction in both costs and prices.

Please note that the argument for HST, like the argument against HST, is much more complicated than the points above.

Please come back for more insight on HST in Ontario and to be included in the ongoing conversation.