Tuesday, October 27, 2009

Recent CRTC Activity

So, after nearly 2 years of foot dragging, public hearings, and Bell obfuscation, we suddenly have more movement from the regulators then we can easily digest. First, a "decision" of sorts, on Usage Based Billing - the decision to decide nothing. At least they recognized that their interim approval was off-base, and reversed it.

A positive note was the proposed framework to decide if traffic management protocols are warranted and just. This might just affect the decision coming this week - the decision on Bell's current methods of UBB.


- Posted using BlogPress from my iPod

Friday, March 27, 2009

Another hit to Ontario's consumer

Now McGuinty says that, in addition to added cost for most retail items, he's not sure that he's going to go through with next year's planned raise to minimum wage. This year's increase from $8.75 to $9.50, scheduled for next Wed, will go ahead.

More news here.

Fighting for Taxpayers: Saskatchewan Rejects Sales Tax Harmonization#links#links

Saskatchewan has already rejected the idea of HST - because of the cost to the consumer.

Fighting for Taxpayers: Saskatchewan Rejects Sales Tax Harmonization#links#links

Ontario's new Harmonized Sales Tax.

Yesterday I sent the following email out to my ISP clients:
Early reports of the contents of today's Ontario Budget indicate that
the wonderful folks in Queen's Park have finally come up with a way
to tax internet service. So, I'm writing for two reasons. The first
is to notify our customers that if the budget measure to harmonize
the PST with the GST goes through, you'll be seeing an 8% increase
in your total bill, effective July 2010 (the effective date of
HST), as nearly everything that's currently subject to GST will
now also be subject to PST.

The second reason is to encourage our customers to write to their
local MPP and tell them how you feel about paying an extra 8% on
most items that are currently PST exempt. We'd really rather not
have to add the PST to our invoicing. If there's enough
public unrest, perhaps we can avoid the entire situation.

For reference, here's the mailing address of our local MPP's:

St. Catharines Riding:
Jim Bradley,
2-2 Secord Drive,
St. Catharines, ON L2N 1K8
905-935-0018

Welland Riding:
Peter Kormos,
103-60 King St., Canal View,
Welland ON M3H 2V7
905-732-6884

Niagara Riding:
Kim Craitor,
8-3930 Montrose Rd.
Niagara Falls ON L2H 3C9
905-357-0681

The argument in favour of HST is that it will allow businesses to
recover PST they pay on materials and equipment. Currently they
can't write those off on their taxes, like they can the GST.
But you don't need to add PST to everything that is currently
exempt in order to change the tax laws to allow Businesses to
claim PST rebates.

Thanks for your time,



It was pointed out to me that I missed one local MPP:

Niagara West - Glanbrook Riding
Time Hudak
Unit M1
4961 King Street East
Beamsville, Ontario L0R 1B0
905-563-1755

In most cases, it's preferable to send paper, snail mail letters to MP's and MPPs. The old adage "if its not on paper, it's not real" applies. However, if you choose to email instead, their email addresses are:

tim.hudakco@pc.ola.org
jbradley.mpp@liberal.ola.org
pkormos-qp@ndp.on.ca
kcraitor.mpp.co@liberal.ola.org


Taking some time to consider this new tax, I've spotted a few things that people might not realize at first. First of all, in my business, I'll have to start charging the 8% 'extra' tax on most of our internet package rates. But beyond that, so will all *my* service providers. Currently we don't get charged PST for many of the services that we have to buy in order to stay in business. Unless those new PST charges become recoverable to us through tax returns, etc. we're looking at both an 8% increase direct to our customers, and an 8% increase in costs - which could mean additional costs to end users.

In other businesses - that means that your night out to dinner and a movie just went up 8% - the restaurants will now have to charge PST. Probably the movie theaters will, too.

Some businesses will, apparently, save big bucks on this deal - rumour is to the tune of 4.6 billion dollars. Their savings are in PST on supplies they need for their products, and in savings involved in *not* having to process PST returns, etc. Those businesses could asve the exact same amount if we left the PST the way it is, and allowed the big businesses to claim rebates on paid PST.

Alternately the province could go ahead with a harmonized tax, but apply it in the reverse of what they intend. Make the new tax apply only to items that the PST applies to now. They've said that they will maintain some items that are currently PST exempt as HST exempt. Why take a half measure - jump all the way in and leave *everything* that is currently PST exempt as HST exempt items. If their true goal, as stated, is to make the province a friendlier tax environment for business, maintaining the current exemptions would achieve that goal without burying the consumer in across the board new 8% taxes.