Ontario’s Harmonized Sales Tax Will Wallop Seniors and Others

By Don Smith

This is a message of some urgency to all seniors 65 and older who get Canada Pension Plan and Old Aid Security cheques from the federal government.
Baby Boomers should also pay attention to this message as you will find yourself being affected in a very few years.
Those on minimum wage without a doubt will also be affected by Ontario Premier Dalton McGuinty’s Harmonization Sales Tax ( HST).
I intend to point out to one and all how the Consumer Price Index (CPI ), inflation and the HST will affect one’s standard of living. When the CPI is figured energy and certain food items are not included in the calculations because according to the government these items are considered volatile price items. Does the government not understand vegetables, fruits, nuts and related products present an unrealistic picture especially for seniors whose food costs make up a big portion of their expenses?
It has been shown by Statistics Canada food that costs have been raising between 7.3 per cent and 9.5 per cent year after year. But those who calculate the cost of living pay no heed to these facts and figures when it comes to Old Aid Security (OAS) payments. According to Stats Canada , overall food prices increased by about 9.5 per cent and fresh fruit and vegetables rose by 22 per cent.
Figures from Stats Canada are assumed to be reliable but obviously these facts and figures mean nothing to those calculating seniors’ cost of living as shown by the continuous absence of adequate increases in the OAS monthly payments.
 Just lately it was announced the inflation rate was dropping because of falling shelter costs, fuel prices and car costs. Believe it if you will, but these reasons are not legitimate for seniors who, in many cases, do not benefit from lower shelter costs and are not buying cars because seniors are spending their meager dollars on food.
Seniors use up $ 56.00 of every $100.00 of their expendable income for food and say inflation has only increased this year by one or two per cent for the general population based on fuel and housing costs and leaving out volatile items like fruit and vegetables is inaccurate because for seniors it’s an absolute fiction and the cost of living adjustment on the Canadian Pension Plan (CPP) and OAS perpetuate it.
The HST will affect seniors and seniors should be made aware the HST will result in higher end costs for most if not all goods and services purchased by seniors here in Ontario.
The McGuinty HST will apply on every day services one uses including Hydro, Nat’l gas, Heating Fuels, water, gasoline, house and auto insurance, telephone, internet, newspapers, and cable services, all just about a necessity. The HST added to the bills outlined will create a position where seniors will be unable to cope financially. Many seniors have already seen their retirement savings dwindle. Having outlined all of the problems this dreaded McGuinty HST will create can someone tell me why the McGuinty Liberals are leading the polls?
To close, McGuinty states the HST and the accounting system with a blended tax will save business and the corporate sectors money. If such is the case the purchasing power of seniors will diminish, ensuing in fewer of their products and services being sold. Seniors speak up. The HST must be rescinded!

(Don Smith is a resident of Welland and one of the founders of Eyes on City Hall, a citizens’ watchdog group in his city.)