Stop Taxing Us To Death

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Can someone please explain how the HST is supposed to be helping my small business? Do you ever feel you’ve been had? The Ontario Government spent months claiming that, “Small Businesses Will Get Big Boost From HST”. In fact, John Wilkinson, the Ontario Minister of Revenue asserted, "Small business is the lifeblood of our economy - small business owners are often the embodiment of the hard work and ingenuity that distinguishes Ontario as an economic leader. Our government's Tax Plan for Jobs and Growth will be a huge advantage to this vital sector of our economy and, as a result, to the rest of the province." Please bear with me … I promise this won’t be a boring, detailed tax lecture only Chartered Accountants and Tax Lawyers will understand. For those of you not living in Canada, HST is probably an unknown acronym. HST stands for the “Harmonized Sales Tax”, the new tax system implemented in Ontario and several other provinces across Canada. PST stands for Provincial Sales Tax – our provincial tax prior to the HST. Now, I’m certainly not a tax expert but the only outcome of the new tax has been huge tax increases on all of the products and services I’m paying for including:
  • Fabric & notions: As a manufacturer, I used to be PST exempt on all supplies used in the making of my product. The reasoning behind this was that customers were paying PST on the final product and, therefore, there shouldn’t be layers of layers of additional taxes.
  • Every marketplace booth or trade show booth is now subject to 13% HST.
  • Lawyers’, Photographers and Accountants’ fees are now taxed at 13%.
And the above represents only a small number of the additional products and services that used to be tax exempt or were only subject to federal taxes previously. Normally a business would offset additional costs by passing along those expenses to customers. But I refuse to do that. In this economy, all of us are tightening our belts. The last thing I want to do is make my helmet covers more expensive. In fact, I’ve never raised my prices. How do I do it? By trying to watch every cent I spend. Of course, sales taxes are in addition to the corporate taxes, federal income tax, provincial taxes, local city taxes, capital gains taxes etc. And even when you die, you’re still taxed further with Death Taxes. I would love to be able to hire an additional employee to help me with the business but as long as the government keeps raising my taxes, there won’t be the necessary funds. Why can’t our governments keep their expenses in check just like the rest of us? When will our government realize that we are already overtaxed? I know this is a familiar refrain but I needed to vent some of my frustration anyways. I’d love to hear from you … have your taxes been raised lately? Is it affecting your business or your quality of life?

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  • Of course the gov,t isn,t interesting in supporting small businesses, they only view you as a source of revenue.

    Ian mchaffie on
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  • Arghhhh…this topic fires me up. It is the most ridiculous thing I have ever heard. I have no idea how this HST helps out anyone but filling the pockets of the government. I just about died when I got my hair cut and colored and the bill was over 100 bucks because of the HST.
    When does the taxing stop?!

    Kimberly on

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