Governments get HST Wrong: The Green Party's Position on HST

Ottawa - The Green Party believes that provincial and federal governments are dead wrong on implementation of the Harmonized Sales Tax (HST). The HST is a good idea being used in the wrong way.

Simplifying taxation and making tax collection more efficient benefits Canadians. Using HST as an opportunity to hide an increase overall retail sales tax is dishonest.

Asked whether the Green Party supports the HST, Erich Jacoby-Hawkins, Green Party Ecological Fiscal Reform Critic said, "We support the simplification of taxes to reduce costs of red tape, but do not support increasing the total amount of sales tax revenue. The government's HST proposal simplifies taxes but also raises them. We believe the HST rate should be lower."

 The Green Party believes that the change should be revenue neutral, meaning that the HST rate would be lower than the combined GST and PST rates because some items will end up with a higher new tax rate. Under the HST some items that were previously PST exempt will be subject to a tax increase. The Green Party believes we should examine these items on a case-by-case basis to consider whether they should also be HST exempt.

"As it is, the implementation of the HST will hurt consumers and business and runs the risk of deepening the recession. Restaurants and home builders are just some of the business community likely to suffer real pain," said Elizabeth May, Leader of the Green Party of Canada, "We urge governments to step back and take a year to review the areas of increased taxation, ensure the economy is prepared and that Canadians are not gouged."

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Contact:
Debra Eindiguer
Press Secretary
(c) 613-240-8921
debra@greenparty.ca
www.greenparty.ca