Ontario Premier Dalton McGuinty released a statement on YouTube June 21 about the soon-to-be-implemented Harmonized Sales Tax (HST).

As announced in the 2009 Ontario Budget, the Provincial Sales Tax (PST) will be combined with the federal Goods and Services Tax (GST) to create a Harmonized Sales Tax (HST) for Ontario, effective July 1.

The provincial portion of the HST will be eight per cent and the federal portion will be five per cent, for a combined HST rate of 13 per cent.

McGuinty said in his statement that some things will cost more because of the HST, but the tax is needed.

“I know the HST is strong medicine, but it's what we need to build a strong economy, so we can have the best schools, health care and quality of life,” he said.

He said economists agree that adopting the HST will create “hundreds of thousands” of new jobs.

“It reduces costs for employers by billions of dollars, money they can now invest in new equipment, new machinery and new plants,” he said, in his statement.

Sudbury MPP Rick Bartolucci also put out a press release about the HST and other aspects of his government's tax reform plan June 21.

According to Bartolucci's press release, besides the HST, aspects of the tax reform plan include:

-Tax cuts for 93 per cent of Ontarians – the average family earning $80,000 will see a 10 per cent tax cut
-The lowest tax rate in Canada on the first $37,106 of taxable income
-Removing 90,000 Ontarians from the tax rolls completely
-A new Sales Tax Credit of up to $260 per person, per year
=Up to $900 (or $1,025 for seniors) through the Ontario Property Tax Credit
-An additional $500 per year for seniors through the Seniors’ Property Tax Grant
-A permanent Northern Ontario Energy Credit of up to $130 for a single person and up to $200 for a family to help eligible low- and middle-income northern residents with energy costs.

Studies using Statistics Canada database modeling show that the entire tax plan, including the HST, will see low income families come out ahead, Bartolucci's press release stated.

The press release said the NDP was trying to “block this progress for Ontario families” by opposing the plan in the media.

“The NDP also tried to block the Ontario Child Benefit and voted against increases to social assistance and the minimum wage,” the press release stated.

“This plan is all about creating jobs and helping Ontarians get ahead. It allows Sudbury residents to keep more of their money, and makes businesses more competitive so they can create jobs here,” Bartolucci said.

“The NDP just can’t help themselves. They abandon the people they pretend to represent just to be able to say no. When push comes to shove, you have to wonder whose side they’re really on.”

For more information about what tax changes are coming with the introduction of the HST and the tax reform package, go to www.ontario.ca/taxchange.