New sales tax to hit homeowners hard: MPP Arnott

Ontario homebuyers are set to absorb at least $800 million in higher provincial taxes if the McGuinty Liberals get their way. This was the finding of a recently released report commissioned by the Building Industry and Land Development Association (BILD).

The report analyzed the McGuinty government’s scheme to create a “harmonized” sales tax, and its potential effect on homebuyers if the new tax kicks in as planned on July 1, 2010. Wellington-Halton Hills MPP Ted Arnott used the report to question Finance Minister Dwight Duncan in the Ontario Legislature.

“I have received scores of emails from my constituents expressing outrage, and the Minister [of Finance] is receiving them too,” he said.

Mr. Arnott also pointed out that the new “Dalton Sales Tax” will apply not only to homes over $400,000, but also to services necessary to purchase a home, like legal fees, appraisals, real estate commissions, home inspection fees, and moving costs.

In a statement on the same day, Mr. Arnott reiterated his pont.

“These families are wondering—when will this government stop breaking its promises to impose no new taxes? When will it start supporting their hopes, dreams and aspirations, instead of standing in their way?”

Complementing Mr. Arnott’s efforts, the Progressive Conservative caucus put forward a motion urging Premier McGuinty “to acknowledge that, due to the current economic downturn, this is the wrong time to move forward with his ill-advised plan to yet again increase taxes on all people of this province.”

The Liberal government used its majority to defeat the motion.

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