on the subject of harmonized sales taxes

With thanks to the Canadian Association of Retired Persons (CARP) for this clarification of Ontario's proposed harmonized sales tax from John Wilkinson, Minister of Revenue.

CARP - A New Vision of Aging for Canada - Advocacy, Benefits, Community & Zoomer.:

"Few people are aware that the current Retail Sales Tax is charged on many items that businesses need to produce the goods and services they provide.

These taxes are not only an impediment for investment, but they become a part of the retail price paid by you, effectively making them a hidden tax.

Removing the hidden tax would provide business the opportunity to invest and to pass the savings on to consumers, as happened in the Atlantic Provinces when they harmonized their sales tax.

Understanding this will empower consumers to demand lower prices from businesses that would see their costs substantially reduced because of our tax reform package.

We know there will be a transition period. So starting in June 2010, Ontario sales tax transition benefits would be sent out, totalling up to $1,000 tax free for eligible families and $300 tax free for eligible individuals."