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G'WATERLLXJ CHIONlClE-Wednesday. April 1. 2009 Government rolls out its reasons for sales tax harmonization BYBOImec will now be taxed starting next est hit bythe recession opposed to sales tax changes, tionary spending and on big ticket Chronicle Staff year. And harmonizing the sales increases in any tax during a reces- items like a new house. While Milloy acknowledged the taxes will help businesses to better sion can delay a recovery argued “People are going to think twice e liberal government is out move has drawn the most criti- compete as the economic recovery Witmer. Especially a change to a before buying a new house.~ said selling it‘s budget, which cism. he said the province is trying starts rolling. consumptive tax when so much of Witmer, about the tax that will now includes a controversial pro- to smooth the transition with a “Bottom line is that harmoniz~ the economy is influenced by conâ€" apply to things like real estate fees. visions to blend the federal and $1,000 rebate program paid to ing is going to help Ontario's busi- sumer spending. “People are going to be influenced 1 provincial sales tax and projected families with an income lower nesses," said Milloy. “it's going to “We now havea tax that isgoing bywhat purchases they make." deficits until 2015. than $160,000. There will also be make us more competitive. bring to impact each and every individ- As for the $1,000 rebate. Witmer The question is will the public cuts to provincial income-tax and more prosperity and create more ual.” said Vifitmer. “This is not the charged that the Liberal govern- buy the rationale behind the deci- a new property tax credit to buffer jobs” type of tax increase where people ment is just trying to “bribe us" sion, especially when it promises the move. Things like diapers. children's have any choice in whether they with ourown money. to hit them hard in the pocket “This is long overdue.” said Mil- clothes and feminine hygiene pay it. “They’re going to give us back book staring July 1.2010. lay. "lfyou look south to the United products are exempt from the "it's a regressive tax that people some of our money but not all of Kitchener MPP John Milloy, the States it is the only one that uses a changes despite earlier reports. are going to have to endure. and at our money," said Witmer. minister of colleges and universi- similar sales tax system, but that's Milloy said his government is com» this point in time it was the wrong “It will come in three install» ties. started making his case at the it for thé rest of the world. mined to helping struggling fami- tax" merits and one of those tax install~ Greater K-W Chamber of Com- "1 think it's a 130 countries that lies. Witmer said her office has been merits will come just before the meme breakfast last Friday mom- have it and the reason why is that “Overall in most cases people deluged by calls about the impact 2011 election. ing at the Delta Hotel. is helps businesses. Business are going to see more money in this will have on people's discre~ “It's bribinguswith our money." “We got a good reaction this spend about $500million ayearon their pockets,” said Milloy. ' . ' 4 ' it, 53 ~ ‘ morning." said Milloy, whose gov- paperwork because of the two sets But Waterloo MPP Elizabeth A, f: ' emment is predicting a deficit of ofsales tax." Witmer said it simply the wrong - ““ $57 billion over the next seven Ottawa is helping to smooth the time to be implementing sales tax . years . transition by kicking in $4.3 billion harmonization 5 But it's the tax harmonization to help implement the harmoniza- “I think it‘s certainly something plan in the budget, which still has tion of the two taxes. The federal that needs to be considered, but at f to be formally approved. that has government is also providing $5 this point in time when so many -- A“: drawn the most ire from the pubâ€" billion on the $32.5 billion the people in our community and i lic. Things like gasoline, heating province is spending over the next througiout the province are down .. 3 oil, gym memberships. haircuts. two years on infrastructure proj- and out, this didn’t offer much ff” . » real estate fees. car repairs and a ect. Both levels of government hope to people who are strug- ff" ‘ ’ ‘ if" 1' ' . ‘T laundry list of other goods and think that will create or keep gling." she said. “r” j“ " * " , ' " 3 c.“.‘.__.§¥:{>‘; services that were once exempt 300,000 jobs in the province hard‘ While not fundamentally await" réfifiarqu' . s \ 4 x ‘ / You could MD a: a l l ' I ”if; t, . . , y] - 1 , p, .t,t~..m.....m- ‘ 1...” ”Wm ~ a 7 night Alaska L‘rurse for two cl'*~ff5g,ff y, . . . \ r E \“ " aboard Award-Winning . »- w 4 .- ‘ t c Special Crurse Offers , " » z 5 is. elebrit Cruises . ” ' l’ ' - " ‘ yX 7-nights Caribbean from $544 “ g “3" l3’lllgllls Transatlantic from $671 . ' .- ' f, mag-f"? 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