Wednesday, November 07, 2007

McGuinty Rejects PST Hike and Considers Harmonization

The CTF had urged Ontario Premier Dalton McGuinty to reject calls for him to increase the PST by 1% taking up the 1% GST cut and then giving the money to municipalities.

And he did. The Globe and Mail reports that the premier clearly rejects the idea. And good for him. During the election he promised not to raise taxes and so far he is keeping that promise.

As well, he says he will only harmonize the GST with the PST if the feds find a way to mitigate the hit on consumers. While the CTF agrees that harmonization should not come without ways to benefit individuals not just businesses, Mr. McGuinty could simply raise the exemption rate or reduce the marginal tax rates to offset the hit. Putting it all on the feds is a little unreasonable. Harmonization provides important benefits to business at a time when Ontario businesses really need it.

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