Having ushered this absurd HST tax into this world.......Flaherty is now denying his clear parentage. Maybe an HST DNA test is in order?
Jim Flaherty clams up on new harmonized sales tax
Sep 16, 2009 04:30 AM
Finance Minister Jim Flaherty and fellow Conservatives are distancing themselves from the harmonized sales tax as public angst grows over the price hikes it will mean on everything from fast food to funerals.
The issue is also causing a headache for Liberal Leader Michael Ignatieff, after he publicly denounced the "Harper Sales Tax" yet gave private assurances to Premier Dalton McGuinty that a federal Liberal government would keep the harmonized sales tax.
The harmonized sales tax (HST) will blend the 8 per cent provincial sales tax and the 5 per cent federal goods and services tax. As of next July 1, Ontarians will pay a blended tax of 13 per cent on hundreds of items that had previously been subject to only the 5 per cent GST.
Once an advocate of the tax scheme, Flaherty was washing his hands of it this week as NDP MPs went after the government for "foisting" higher taxes on residents in Ontario and B.C., the two latest provinces to join the plan.
Flaherty downplayed Ottawa's role and said the decision to meld the taxes was up to the provinces. In the past, Flaherty has publicly pushed provinces to harmonize their sales taxes with Ottawa's, calling the two-tier tax system a "direct burden" on businesses.
In March, he praised Ontario, saying the move would save business about $500 million in administrative costs, and noted that, in a few years, "hopefully we will have a harmonized system across Canada."
But federal Conservative sources have told the Star that earlier in the summer, officials in Prime Minister Stephen Harper's office ordered Flaherty to tone it down.
"They asked Jim to stop talking about (the tax) so much because it's not helpful," said one insider.
Ignatieff came out swinging against the Tories' support of the harmonized tax earlier this month.
Yet yesterday, McGuinty said he had been assured of Ignatieff's support. "We have secured Mr. Ignatieff's commitment to moving ahead with the single sales tax should he earn the privilege of serving Canadians in government."
Wednesday, September 16, 2009
Posted by Fillibluster at 8:59 AM