THUNDER BAY – NDP Leader Andrea Horwath is in Thunder Bay to share a report on the impact of the HST. “Dalton McGuinty’s Harmonized Sales Tax (HST) will cost the average Thunder Bay family nearly $800 a year” shares Horwath. The increased costs are according to a study by Ontario’s NDP.
“Using Statistics Canada’s “Social Policy Simulation Database and Model”, New Democrats examined the HST’s financial impact on Ontario families. The analysis shows that the HST will cost the average family $792 more every year. Even after they receive $322 in tax cuts and credits, the average family will be $470 out-of-pocket, adds Horwath.
“This will be a huge blow for Thunder Bay families when they can least afford it. It’s going to cost more to turn on the lights, keep the house warm in the winter, and drive to work,” said Horwath.
The calculations also show that middle-income families earning between $50,000 and $100,000 a year will be especially hard-hit – paying anywhere from $502 to $823 in HST each and every year.
“Bottom line is: families in Thunder Bay are struggling to get by and McGuinty’s new HST will only make it harder for them.”
On Tuesday, the Liberals released a report admitting that middle-income families will be squeezed by the HST. These findings were especially surprising since the Liberals deliberately underestimated the impact on families by assuming that businesses will voluntarily pass along billions in tax savings.
“Families don’t believe businesses will pass their savings on – especially when the government’s own LCBO is pocketing their HST savings,” said Horwath.