PICKERING -- Tim Hudak, right, leader of the Ontario Conservative Party, was at Pickering City Hall on Nov. 19, along with Oshawa MPP Jerry Ouellette, left, to speak to City councillors about the harmonized sales tax. November 19, 2009.
PICKERING -- If Ontario implements the 13-per cent harmonized sales tax, it will hurt all Durham residents, especially middle-class families and retirees, says the leader of the Ontario Conservatives.
"This is a big tax grab that's going to hurt families and kill jobs in Pickering and across the province," said Tim Hudak at Pickering City Hall.
Mr. Hudak, along with Oshawa MPP Jerry Ouellette, met with some local councillors Nov. 19 to discuss the HST after learning Pickering council, led by Ward 2 Regional Councillor Bill McLean, sent a motion opposing the HST to Premier Dalton McGuinty. The motion was well received by other councils.
"One-hundred and twenty-five municipalities have endorsed our motion to Mr. McGuinty," Coun. McLean said following the meeting with Mr. Hudak.
Only two members of Pickering council besides Coun. McLean attended the meeting: Ward 2 City Councillor Doug Dickerson and Ward 3 Regional Councillor Rick Johnson. Coun. McLean said he put politics aside for the discussion on HST.
"This is a position of principal as opposed to a party," he said.
The move to harmonize the provincial tax with the federal tax will increase taxes on hundreds of goods and services starting July 1.
"I think with a lot of support from the residents of all of Ontario (giving feedback) to our MPPs, I hope Mr. McGuinty will stand up and do the right thing," Coun. McLean said.
Mr. Hudak said a tax grab is wrong at any time, let alone in the middle of an economic recession, adding the HST will include increases on ice rink rentals, gas, heat, haircuts and vet visits.
He said residents should contact their local MPPs to let them know how they feel about the HST or go to www.daltonsalestax.com to sign the petition.
"If we have a couple of Liberal MPPs that have some backbone and stand up for their constituents, that can make a big difference in stopping this tax dead in its tracks," Mr. Hudak said.
Pickering-Scarborough East MPP Wayne Arthurs rebutted Mr. Hudak's comments in a press release where he said the HST will in fact benefit Ontario families. He accused Mr. Hudak earlier in the week of opposing a tax reform package, which includes the HST, that would put money in people's pockets and create local jobs.
"Tim Hudak is telling only half the story," he said. "While he has spent seven months opposing the tax cuts, Hudak has yet to commit to reversing a single one, because he knows these tax changes will create jobs and help Ontario families."
The Liberal government claims the plan will eliminate hidden taxes, result in permanent tax savings for 93 per cent of Ontario families, and give $1.1 billion in permanent income tax cuts for average Ontario families. The reform will include a new Ontario sales tax credit for adults and children in low-and-middle income families, a new Ontario property tax credit for seniors and non-seniors, reductions on business taxes and eliminate the small business deduction surtax.
Mr. Arthurs's release referred to a report released this month by Professor Jack Mintz, of the University of Calgary, who said the HST and the other tax changes would lead to nearly 600,000 new jobs over the next 10 years and increase annual incomes for families by up to 8.8 per cent.