Squinty McGuinty has done it again!!   HST applies to the resale of vehicles.  However, traditionally only RST/PST @ the rate of 8% was applied to the private resale of a vehicle.  HST does NOT apply to private resales of vehicle, however, to make it fair for the Automotive Industry, a 13% RST/PST will be applied withing the HST.  This means you will no pay 5% more for your vehicle when purchasing at a fair price from a private seller.

There is a note attached to this on our government website:

Private Resale of Vehicles (including Registration)
Ontario will maintain the PST on private transfers of used vehicles at a rate of 13 per cent to help ensure a level playing field between sales by dealerships and private sales.
Tax changes to 13% (Was 8%)

ARE THEY SERIOUS???  Level playing field????  WTF are you talking about???  So do we get a rebate on the vehicle we sold to effectively “trade in”?  If so, then you have a level playing field.  Private sellers have always had a disadvantage as the tax savings form the trading of the old vehicle was not there.

New Car Dealers traditionally mark up used/pre-owned vehicles by 20% with a minimum of $3000 profit.  So when trading in a vehicle you are given a value that is 20% below market value plus the estimated cost on reconditioning.

I recently purchased a new vehicle.  The trade value of my old vehicle was so low that I was be better to sell it privately.

Let’s do the math on an example:

New Vehicle outright purchase $42,000plus GST & RST 13% ($5460) = $47,460

Trading an old vehicle: New Vehicle $42,000, Trade-in value $14,000 plus GST & RST 13% ($3640) = $31,640 (for the purpose of comparison New vehicle plus tax, plus value of trade = $45640) a savings of  $1820 (basically taxes on the value of the trade)

OK, now let’s sell the old vehicle privately!!

Take the outright purchase price total of $47,460 (including taxes) and then subtract the selling price of the old vehicle minus any expenses.

Selling Price:  $17,000 ($3000 difference compared to trade-in value)
Costs: Advertising $0  Ontario Safety Certificate and Emissions test: $500
Net Value for old vehicle: $16,500

Now lets do the math:  $47,460 – $16,500 = $30,960

Difference:  $30,960 (net cost of new vehicle considering sale of old vehicle – $28,000 (net value of new vehicle minus the trade in value) = $2,960

Add to this the fact that prior to July 1, 2010, the purchaser of my private sale vehicle did not have to pay GST, 5% savings for him, plus the vehicle price was likely less than a dealers sale price.  A savings of $850 GST

In the last scenario that saved the consumers an estimated $6,525,  our governments were paid:

GST:  $2,100 New Vehicle Purchase + $25 for vehicle repairs = Total $2,125

RST/PST: $ 3,360 on new Vehicle purchase + $40 tax on repairs + $1,360 on the old vehicle sale = $4760

Total TAX paid:  $4,760, none of which is recoverable due to the trade clause a dealer has.

So, lets see the tax revenue from the dealer sale: (Considering a trade value of $14,000)

GST:  $1,400 New Vehicle Purchase

RST/PST: $ 2,240 on new Vehicle purchase

Resale of trade @ $17,000 = GST $950  PST $1,360 = $2310

Total TAX paid:  $5,950

Dealer Profits on trade: $17700 – trade value $14,000 – repairs $500 = $3200*

This does not include the dealer administration fee which is nothing more than added profit margin.  This “fee” ranges from $99-$699

So let’s review:

We needed to make this a level playing field for dealers??  Or the dealers need to be able to gouge consumers more then they do today?  This is ALL about increased tax revenue for the Ontario Government.    McGuilty promised no additional taxes!

Remember this when you vote at the next provincial election!

This an email from the NDP.  The link to click on is at the very bottom:

Friend,

Dalton McGuinty’s unfair tax grab will make life less affordable for people like you – raising the price of everything from gasoline, hydro, home heating, haircuts and more by eight per cent. More people are learning about this unfair tax grab every day and the movement to stop the HST is growing. But we need to keep up the pressure.

Premier McGuinty said the HST is about ‘tax fairness” – even while a report says the HST will hit consumers hardest.

Dalton McGuinty needs to know that you are opposed to his HST. I encourage you to write your local newspaper, whether it’s a big city daily or a local community weekly. Let the premier know that you don’t support the HST and that you want it stopped.

If there is a call-in show on a local radio or television station – call them and make it clear that you are opposed to the HST.

In addition to writing your local newspaper or calling your local radio station, you can even write the Premier. Simply click on this link and you’ll be taken to an e-mail form which will let you tell Dalton McGuinty that you don’t want the HST.

The Premier says he hasn’t heard an outcry against the HST. Sounds like it’s time to raise the volume a few decibels.

Together, we can stop this unfair tax grab.

Sincerely,

Andrea Horwath, MPP
Leader, Ontario’s NDP

PS – Encourage your friends and colleagues to join the fight. Visit our website at www.unfairtaxgrab.com

https://www.premier.gov.on.ca/feedback/ … sp?Lang=EN

St. Paul’s Midtown Riding sends message to Liberals, HST is OK!  They send message to Ontarians, Screw you!

Dr. Eric Hoskins, a former adviser to Lloyd Axworthy, won the by-election in the midtown riding of St. Paul’s which was held by former cabinet minister Michael
Bryant for a decade before he left politics in June.

Protest vote hopes were crushed on Thursday as residents elected instead to maintain the status quo,  voicing support for the HST.

This time around, Hoskins beat out Progressive Conservative candidate Sue-Ann Levy, a feisty city hall columnist at the Toronto Sun, and NDP candidate and lawyer Julian Heller.  Maybe the PC and NDP could have given St.Pauls a choice!

Labatt Breweries of Canada Ltd. gave the largest donation of $10,300 to the Liberals. Other contributions included $6,500 from Bruce Power L.P., which operates a southwestern Ontario nuclear power plant, $5,000 from Paul Martin and $250 from former Progressive Conservative cabinet minister Janet Ecker.

St. Paul’s has a population of 112,449 including 82,505 eligible voters, the majority of which are stupid people.  We can only compare them to Floridians. The riding has a mixed-income population with some high-end neighborhoods and some middle-class to low-income residents as well.  Unfortunately is has a high immigrant population who do not understand that “Liberal” does not stand for freedom.

http://www.thestar.com/article/660243

Reposted from the Star

Robert Benzie

Queen’s Park Bureau Chief

Premier Dalton McGuinty will retreat from some of the more punishing aspects of the harmonized sales tax if enough Ontarians protest, says Progressive Conservative Leader Tim Hudak.

With the new 13 per cent levy less than a year away, Hudak, who won the Tory leadership on Saturday, said taxpayers have to take a stand if they want McGuinty to relent.

“I’m convinced that by putting pressure on Dalton McGuinty we can get him to return to character – he’s a notorious flip-flopper and I’m convinced we can get him to back down,” he said yesterday.

Standing in a midtown park against the backdrop of apartment towers to illustrate that tenants could face higher rents because the HST will raise the cost of heating and services, Hudak urged Ontario voters to rally against the tax by signing an electronic petition at daltonsalestax.com. “We’re going to put 100 per cent of our energies into stopping this tax in the first place. I’m not going to give any quarter to Dalton McGuinty on this,” he said, noting it will be especially difficult for Ontario’s 4 million renters. “The more people hear about it, the angrier they get. It’s crazy to do it in a recession.”

Hudak wouldn’t say if he’d repeal the tax should the Tories topple the Liberals in the 2011 election.

“I’m not convinced it’s actually going to be there in 2011,” he said. “Our game plan (is) … to stop this tax before it even starts.”

Beginning July 1, 2010, the 8 per cent provincial sales tax will be melded with the 5 per cent federal goods and services tax, raising levies on scores of goods and services, including heating fuel, gasoline, newspapers, fast-food value meals and funerals. While the Tory leader heaped scorn on McGuinty’s Liberals, he was careful not to criticize Prime Minister Stephen Harper’s Conservative government, which gave Ontario $4.3 billion to harmonize the taxes.

Revenue Minister John Wilkinson wasn’t available yesterday, but last week he indicated the government has no plans to scrap a tax it sees as essential to helping business in Ontario.

“We need to move to a world where we are taxing income and savings less. To pay for that, we’re going to tax consumption more, but that’s what they do in 130 countries around the world,” Wilkinson said after being sworn in June 24 as McGuinty’s HST point man.

Wilkinson pointed out 93 per cent of Ontarians will get income tax cuts and most people will receive HST rebate cheques of up to $1,000 over the next two years.

NDP Leader Andrea Horwath, who has promised to eliminate the tax if she becomes premier, suggested last week the HST could even be bad for Ontario’s health.

That’s because tax on bicycles and helmets will increase from current 5 per cent GST to 13 per cent HST. “Today, more children than ever are obese, many illnesses can be directly attributed to air pollution and heart disease is a leading cause of death in adults,” she said last week. “The McGuinty Liberals should be encouraging people to get on their bikes, not punishing them.”

Just when we thought Dalton McGuinty couldn’t make things any harder for Ontario families, he is going to hike your taxes again with the HST, the ‘Harmonized Sales Tax.’

The Harmonized Sales Tax means an extra 8% tax on dozens of items. It will hurt Ontario families when they can least afford it.  But what does the HST mean to you, the taxpayers?

It will cost more to fill up your car.

It will cost more to heat your home.

It will cost more for your internet and cell phone.

It will cost more to rent an apartment or buy a new home.

Dalton McGuinty has stuck his hand into the pocket of taxpayers deep enough and his latest tax grab needs to be stopped.  Ontario families deserve a tax break, not a tax hike.

http://www.daltonsalestax.com/petition/

I urge you to sign petitions and have your voices heard.  This is the GST all over again for Ontario, a double whammy.   Mark my words, the Liberal government has a game plan.  They are already prepared to lower the tax rate or make large concessions, but continue with the HST.   This will be there way of increasing taxes and make themselves look like heroes because the caved.   We Ontarians should stop at nothing to reverse the HST before it starts.   If the HST is introduced to Ontario we will all be paying significantly more taxes then anyone else in the country.

Strikes seem to work for the greedy unions in this country.  We should start a strike or protest.  Find a way to refuse pay provincial sales tax on anything.  This means stop buying in Ontario, refuse to pay the PST, or pay cash.

You have not heard the last of me on this subject!